How Are Private Health Insurance Premiums Calculated?

There is no single UK formula that determines every private health insurance premium. Insurers price their products differently, and a quote reflects the policy options and information you provide.

Factors that can affect a quote

Insurers may take account of the insured person's age, where they live, who is covered and the benefits selected. Wider hospital access or more generous outpatient cover can affect the price. The chosen excess and underwriting method can also matter. Some insurers use different pricing structures, so two quotes are not automatically comparable.

Your medical history usually affects what is covered through underwriting and exclusions. It does not mean every insurer will calculate the premium in the same way. Give complete and accurate information when asked.

Compare like for like

Check the same people, cover level, outpatient limits, excess, hospital list and underwriting basis across quotes. Look at the renewal terms too: premiums can change, and a first-year quote does not promise the future price.

Avoid choosing only by the monthly figure. A lower premium may come with less provider choice, a higher excess or tighter benefit limits.

For help understanding those trade-offs, see our guide to health insurance benefit limits.

Compare cover details and indicative prices with our UK health insurance comparison tool.

Sources checked 19 October 2026: PHIN: comparing private medical insurance · PHIN: private hospital pricing