What does private health insurance cost?
Let’s get straight down to some numbers before looking in detail at what affects private health insurance premiums.
According to one leading insurer, the average premium across the UK for someone in their 40s is just under £45 per month. That works out at around £1.50 a day – less than what many spend on a snack or drink.
For families, pricing can vary depending on the level of cover chosen. As a rough guide, a policy for two adults aged 40 living in Blackpool with two children aged 12 & 5 costs from around £103 per month with one insurer.
These are of course example prices and it is important to compare quotes from providers so you can see what’s available to you.
What affects the cost of health insurance?
Here’s a quick overview of the main factors that affect PMI premiums, followed by more information on each one.
What affects the cost of health insurance? | ||
|---|---|---|
Factor | How it affects your premium (with example) | Impact level |
Age | Increases as you get older. Premiums can more than double between your 40s and 60s, and continue rising into later life. | High |
Location | Higher in areas like London and the South East due to higher treatment costs. Highly populated areas such as Manchester can also come in more expensive. | Medium |
Level of cover | More cover = higher cost. Increasing outpatient cover to unlimited, for example, can raise premiums by over 40% in some cases. | High |
Excess | Higher excess = lower premium. Increasing your excess to £500 may reduce premiums by almost 50%. | High |
Hospital list | Broader hospital access increases cost. Choosing a comprehensive list (including London) can increase premiums by around 5–15%. | Medium |
Lifestyle | Smoking can increase premiums, while meeting certain health criteria may reduce them. Discounts of around 10–15% may apply for non-smokers with a healthy BMI and no pre-diabetes. | Medium |
Policy type | Adding more people increases total cost but reduces cost per person. Joint and family plans often have up to 10% discount applied, with further savings to be made with family plans that only charge for the eldest child. | Medium |
Optional extras | Adding benefits such as dental cover or therapies can increase your premium, depending on what you include. | Medium |
Payment method | Paying annually can reduce overall cost, with some insurers offering discounts of around 5% compared to monthly payments. | Low |
Age
Age is one of the biggest drivers of health insurance costs. As you get older, the likelihood of needing treatment increases, and premiums reflect that.
For example, a policy with one insurer for a healthy 40-year-old might cost around £45 per month. By age 60, that could rise to around £100, and by age 70 it might be around £170 for the same level of cover. Of course, how much your own policy costs will also depend on other factors.
Location
Where you live can play a part in how much you pay for private health insurance, as insurers factor in regional differences in treatment costs and demand for private healthcare.
London and the South East are typically the most expensive areas, with premiums often significantly higher than the UK average. However, they aren’t the only regions where costs can be elevated. Highly populated areas such as the North West - particularly Manchester - can also come in above average, depending on the insurer and level of cover chosen.
At the other end of the scale, some regions – including parts of the North East, Scotland and Yorkshire – tend to be more affordable. In some cases, premiums in these areas can be noticeably lower than the national average.
These differences are largely driven by variations in hospital fees, consultant charges and overall demand for private treatment in each region. While location isn’t something you can control, it’s useful to be aware of how it can influence your quote when comparing policies.
Level of cover
The level of cover you choose has a direct impact on price. More comprehensive plans include a wider range of treatments and higher limits.
Outpatient cover is a good example. One big name insurer offers the following prices for a 40-year-old non-smoker living in Blackpool:
£500 outpatient limit: Around £40 per month.
£1,000 limit: Around £45 per month.
Unlimited outpatient cover: Around £57 per month.
Reducing outpatient cover can help bring down monthly costs depending on your needs.
Excess
Your excess is the amount you agree to pay towards a claim before your insurer covers the rest.
For example, one insurer offers the following health insurance quotes for a 40-year-old non-smoker living in Blackpool:
£0 excess: £67.16 per month.
£100 excess: £62.46 per month.
£250 excess: £55.15 per month.
£500 excess: £45.40 per month.
Choosing a higher excess can lower your monthly premium, but it’s important to choose a level you’d feel comfortable paying if you needed treatment.
Hospital list
Your hospital list affects where you can go for private treatment, and it can also have an impact on your premium. In simple terms, the more hospitals you have access to, the more you’re likely to pay.
Most insurers structure their hospital lists in tiers, giving you different levels of choice depending on your budget and how much flexibility you want when it comes to treatment:
Limited hospital list: A more cost-effective option with access to a smaller, carefully selected range of hospitals.
Standard hospital list: A wider network of private hospitals across the UK, offering more choice while still keeping premiums affordable.
Comprehensive hospital list (including London): The broadest level of cover, giving access to a large range of private hospitals nationwide, including leading facilities in central London.
To give you an idea of how this can vary in practice, here’s an example from one leading insurer for a 40-year-old non-smoker living in Blackpool:
Limited hospital list: £45.40 per month.
Extended hospital list: £48.44 per month.
Extended hospital list including London hospitals: £50.36 per month.
For many people, a limited or standard list is more than enough, especially if they’re happy to be treated locally. Others prefer the reassurance of having more choice, particularly if they want access to specific hospitals or consultants.
Lifestyle
Your lifestyle and overall health can also influence how much you pay. Smokers will usually pay more, as smoking is linked to a higher risk of serious health conditions. On the other hand, some insurers offer discounts, often between 10% and 15%, for people who meet certain health criteria.
These may include:
Being a non-smoker.
Having a Body Mass Index (BMI) within the insurer's criteria.
Not having conditions such as diabetes or pre-diabetes.
If you meet these criteria, you may qualify for a reduced premium or an introductory discount. However, this can vary between insurers and may be reviewed over time.
Policy type
The type of policy you choose – individual, couple, or family – will affect the total premium.
Discounts of 5-10% for joint plans and 10% off family plans are fairly common.
For example, one UK insurer offers the following pricing for a family (based on two adults aged 40 and two children aged 12 and 5):
Individual: £45 per month.
Joint: £86 per month (around £43 each).
Family of four: £103 per month (around £25 per person).
You can see that while adding more people increases the total cost, the price per person falls. In the above quote, adding two children to a joint policy only increases the premium by around £17 per month, as the insurer only charges for the eldest child on a policy.
Several insurers offer ‘free child’ places, where younger children can be included at no extra cost once the eldest child is covered. This can make a noticeable difference to the overall price, particularly for larger families, and is worth looking out for when comparing policies.
Optional extras
Adding extra benefits will increase your premium, so it’s worth thinking carefully about what you really need.
Optional extras might include:
Dental and optical cover.
Extended mental health support.
Additional therapies.
Each extra adds to the monthly cost, so keeping your plan focused on core needs can help manage premiums.
Payment method
How you pay for your policy can also make a difference. Some insurers offer a discount, say 5% off your premium, if you pay annually instead of monthly. Others might add interest to your monthly payments, which raises your overall premium. While monthly payments can be easier to budget for, they may increase the total cost over the year.
How to make health insurance more affordable
If your initial quote feels higher than expected, there are several ways to potentially bring it down without losing the cover that matters most:
Increase your excess.
Adjust your outpatient cover.
Remove optional extras you don’t need.
Choose a limited hospital list.
Consider paying annually.
Look at joint or family policies.
Even small changes can help make your policy more manageable while still giving you the protection you want.
Finding the right cover at the right price
With so many factors affecting the cost of health insurance, knowing where to start with your comparisons might feel like a mammoth task to undertake. That’s where Money Service can help. We compare options from leading UK insurers and tailor your cover to suit your needs and budget. We help you find the right balance of cost and cover, so you’re not paying for anything you don’t need.
We’ll also check for any available offers, cashback, or added benefits that could make one plan better value than another.
With Money Service, you’ll benefit from:
Personalised recommendations from a specialist based on your needs and budget.
A comparison of leading UK insurers in one place.
Help finding the right level of cover without unnecessary extras.
Confidence you’re getting great value with our Best Price Guarantee: if you can find a better like-for-like quote, you could receive a £250 Amazon voucher.
With the right guidance, you can find a plan that gives you the right cover at a price that works for you.
Speak to a specialist today on 0800 144 4777 or request a call back to explore your options.
