Health insurance excess

When you take out a health insurance policy, you may be able to add an excess to your cover. An excess is an amount of money you pay towards the cost of claims that you make.

Having an excess usually lowers the price of private health insurance. The higher your excess, the lower the price will be. If you choose a lower excess or no excess, this will usually increase the price.

So choosing a higher excess can mean a lower price for health insurance. But remember, you’ll need to pay the excess if you make a claim.

For example

If you choose an excess of £200, and you have treatment that costs £500, you would pay £200 and your insurer would pay the remaining £300.

Excesses work differently depending on the insurance provider you choose. Make sure you understand the details of any health insurance policy you’re considering.

If you have an excess on your policy and you make a claim, your excess is the amount you’ll pay towards your treatment.

So, if you have an excess of £100, and you need a consultation that cost £200, you will pay £100, and your insurer would pay the remaining £100.

The way your policy applies the excess can vary. Some policies will ask you to pay your excess each time you claim. Whereas other policies will ask you to pay your excess once each policy year. So once you've paid your excess, you won't have to pay it again that year, even if you make more claims.

Sometimes, if your policy renews while you're having treatment, you'll need to pay your excess twice. Once in the first year and once again in the next year.

For example

• If you had treatment in February, you'd pay your excess on the treatment
• Your policy renews in March
• You would need to pay your excess again for any treatment you receive in April

Tip

It's a good idea to compare health insurance policies to find a policy with an excess that's right for you.

Get a Bupa health insurance quote >

The main benefit of having health insurance with an excess is that it reduces the cost of your policy. If you choose a high excess, your cover price will be lower. 

However, it’s important to remember that if you choose a higher excess you will have to pay this amount when you make a claim. Think about how much you may be able to afford if you needed to make an unexpected claim.

If you choose a lower excess, the price of your policy will be higher, but the excess amount you’d need to pay if you make a claim would be lower. It’s important to consider what will work best for you.

This depends on the policy you choose and how much excess you choose to add.

Some health insurance providers offer policies with no excess at all. The price of these policies may be higher, but there is much less chance of any unexpected costs when you claim.

Some health insurance policies are available with a choice of excess amounts. You might be able to choose anything from £100, £150, £200, £500, £2,000 or more.

Choosing a higher excess amount will usually reduce the cost of your monthly or annual payments for your policy. But it’s important to remember that you will need to pay the higher excess amount when you claim.

To find out how much health insurance could cost for you, you can get a Bupa health insurance quote.