How claiming on your private health insurance can affect your discount and what you pay

Name: Private Health Insurance
Brand: myTribe Insurance Experts
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In this guide, we’ll break down how claiming on your private health insurance policy can affect your no claims discount and what you pay in the future. We'll compare the models of six leading insurers and try to cut through some of the complexities to provide you with clear, actionable insights.

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Understanding your health insurance no claims discount

Here's a quick overview of the main things you need to consider about no claims discounts (NCDs) on health insurance policies:

NCDs in private health insurance policies work differently to other types of insurance, such as motor insurance.
With most private health insurers, you’ll start with a relatively high discount and move up or down a sliding scale depending on how much you claim.
Each insurer has its own rules; with variations in the starting discount, the maximum discount, and the claim amount allowed before your NCD is reduced.
If you don’t make a claim and move up your insurer’s NCD scale, your next renewal price will usually be lower than if you had claimed.
Pounds and pence savings matter more than percentage discounts - compare the actual costs, not just the percentages.

‍Related guides:

What is a no claims discount, and how does it work in the UK?

If you're a driver, you're probably already familiar with no claims discounts (NCDs). They reward you for not making a claim on your insurance. The longer you go without claiming, often, the bigger the discount.

With car insurance, you start with no discount and build it up over time. Every year you have insurance without making a claim, the discount gets bigger – up to a maximum set by your insurer.

Many private health insurance policies also offer NCDs. They work differently, but the effect of making claims is similar – your policy will usually cost more at renewal than if you hadn't.

How do health and car insurance NCDs differ in the UK?Here’s a quick side-by-side look at how no claims discounts work for private health insurance compared to car insurance in the UK.

How do health and car insurance NCDs differ in the UK?
Feature	Health Insurance NCD	Car Insurance NCD
Is an NCD offered?	Not all providers offer an NCD¹.	Most providers offer an NCD.
Starting discount	Usually 64–72% at the start.²	0% at the start, builds each claim-free year.
NCD protection	Sometimes available.	Common add-on.
Claim impact	Most insurers cap the total drop in one year, no matter how many claims you make.²	Often reduces NCD by 2 years per at-fault claim; further claims usually mean another 2-year drop each time.
Maximum discount	70–80% depending on the provider.	Around 70%.
Who it applies to	Usually each person on the policy has a separate NCD.²	Tied to the vehicle; any named driver’s claim can affect it.
Overall approach	More to lose than gain; discount starts high with potential to fall.	More to gain than lose; discount starts at zero with potential to build.

Source: myTribe Insurance Experts

^{¹ Examples include}^Freedom^,^{General Medical}^{, and}^Vitality^{, which do not offer an NCD and instead use alternative pricing models.}

^²^{Saga exception:}^{Starting discount is 35%. Caps NCD drops at two no claims discount levels per claim in a policy year, but claims for different medical conditions each trigger another two-level drop. With Saga’s you get one NCD for the policy, not one for each member.}

How do health insurance no claims discounts work?

When you get a new private health insurance policy from a provider that offers an NCD, you’ll usually start from day one with a significant discount of up to 72% off the base premium. This is the starkest difference to motor insurance, where you start at 0% and work your way up.

This means health insurance claims can have a big impact on the policy price at renewal - particularly in the early years.

Chris Steele, founder and lead insurance expert at myTribe adds:

“Unlike car insurance no claims discounts, where there’s little to lose in the early years but plenty to gain over time, a private medical insurance no claims discount works almost in reverse, with more to lose than to gain.

The overall effect is that a no claims discount in private health insurance acts more like a penalty for claiming than a reward for not. That’s why it’s important to understand how your own no claims discount works and to compare it against what other insurers offer.”

Chris Steele

Cert CII (F1, IF7, I10), Founder and Insurance Expert

What is an insurance "base premium"?

Your base premium is the full price of your insurance before any no claims discount is applied. So, if you have a 70% discount, and your renewal quote is £100 per month, the actual underlying cost of the policy is £333.33 per month (£100 ÷ 0.30).

While your renewal documents may not show it, calculating your base premium is useful, as it will allow you to see better how a claim and a reduction in your discount percentage may affect your next renewal.

Use our base premium calculator to find out the underlying cost of your insurance (this can be used for any insurance with a no claims discount).

Base Premium Calculator

Calculate the actual cost of your insurance before discounts. Use this to see your current base premium.

How each UK health insurer's no claims discount works

We've captured screenshots of each of the UK's leading health insurance providers' no claims discount scales and terms, so you can quickly browse them all. Select an insurer to view their discount, and check below the image for their key rules.

What is the NCD scale for Aviva health insurance?

Aviva's Healthier Solutions uses a 14-level scale starting at level 12 (69% discount).
The scale runs from level 1 (0%) to level 14 (75% maximum discount).

Aviva health insurance no claims discount scale showing discount percentages from 0% to 75% based on claim-free years

Source: Aviva Policy Documentation 2025

How does Aviva's no claims discount work? ▼

Eligible claims of £250 or below (after excess) have no impact.
Claims over £250 drop you 3 levels – harsher than most insurers.
Each person has their own NCD – one person's claims don't affect others' discounts.
Example: A £500 eligible claim drops you from level 12 (69%) to level 9 (60%).
Exempt claims: NHS cash benefits, dental, optical, and therapies.

Pretty confusing, right?

As you can see, there's significant variation across insurers - different levels, starting points, percentages and rules. Let's break this down to make it easier to compare.

Comparison of health insurer NCD starting levels

Most private medical insurance plans start around the top of its no claims discount scale, often around level 12 of a possible 14-17 levels.

No claims in a policy year: You typically move up one level, increasing your discount slightly.
Making a claim: You may drop multiple levels in one year, depending on the claim size and insurer’s rules.

No claims discount starting levels by health insurance providerThe table below shows each private healthcare provider's initial NCD level, starting discount, total levels, and maximum discount.

No claims discount starting levels by health insurance provider
Insurer	Starting Level	Starting Discount	Total NCD Levels	Maximum Discount
Aviva	12	69%	14	75%
AXA Health	12	72%	17	80%
Bupa	12	65%	14	70%
The Exeter	12	70%	15	75%
Saga*	5	35%	10	60%
WPA	12	64%	14	70%

Source: Aviva, Axa Health, Bupa, The Exeter, Saga and WPA Policy Documents 2025

^{*Unlike most providers, Saga applies the NCD to the whole policy, so claims from any member on the policy can affect it.}^Disclaimer:^{The discounts shown relate to each provider’s current (August 2025) private health insurance product:}^{Aviva Healthier Solutions}^,^{AXA Health Personal Health}^,^{Bupa By You}^,^{The Exeter Health+}^,^{Saga HealthPlan}^{, and}^{WPA Complete Health}^.

As you can see from the table, Saga is an exception, as it starts most new policies midway through its discount scale at level five. Although both the starting and maximum discounts are lower than other providers, it doesn’t mean that Saga’s NCD is better. It penalises claims more heavily and the NCD is per policy, not person - more on that later.

Will your medical insurance get cheaper if you don’t make a claim?

No, it’s very unlikely your health insurance renewal quote will be lower, even if you don’t make a claim. There are many things that affect the cost of a health insurance policy. For example, age. As we get older, we're more likely to suffer from health problems and more likely to make a claim on our insurance.

Providers will factor this into their pricing – along with other factors, including medical inflation – when they give you a renewal quote. The cost of your insurance won't necessarily go down if you don't make a claim, but it will be cheaper than if you had.

Claim impact on health insurance discounts

It’s not very simple to compare UK health insurance providers' NCDs because they use different scales. Some have more levels than others, and the percentage discounts associated with each level aren’t always the same.

Something all of those that offer an NCD have in common though is that the amount of discount offered between levels gets larger the further down the scale you fall. In other words, you lose a larger percentage of your NCD the more you claim.

How claims of different sizes affect your NCD

Although it’s not easy to compare providers directly, one difference between them is how NCDs are affected by smaller claims.

Health insurer comparison: Impact of claims amount on NCD levelsHealth insurer comparison: Impact of claims amount on NCD levels

Health insurer comparison: Impact of claims amount on NCD levels
Claim Amount Band	Bupa (Levels ↑/↓)	AXA Health (Levels ↑/↓)	Aviva (Levels ↑/↓)	WPA (Levels ↑/↓)	The Exeter (Levels ↑/↓)
No claims	+1	+1	+1	+1	+1
Up to £250	0	-3	0	-1	0
£250.01 – £300	0	-3	-3	-2	0
£300.01 – £750	-2	-3	-3	-2	-1
£750.01 – £1000	-2	-3	-3	-3	-1
£1000.01 – £1200	-2	-3	-3	-3	-2
£1200.01 – £2000	-3	-3	-3	-3	-2
£2000.01+	-3	-3	-3	-3	-3

^Disclaimer:^{NCD claims rules shown relate to each provider's current (August 2025) private health insurance product:}^{Aviva Healthier Solutions}^,^{AXA Health Personal Health}^,^{Bupa By You}^,^{The Exeter Health+}^,^{Saga HealthPlan}^{, and}^{WPA Complete Health}^.

Expert insight

As you can see from the table, some private health insurance providers are more lenient when it comes to smaller claims.

‍The Exeter, for example, won’t change your no claims discount level until claims reach £300, and you won’t move down three levels until they reach £2,000. AXA Health’s Personal Health policy, on the other hand, will move you down three levels for claims of any size.

This isn’t an exact comparison, because the percentage discounts associated with the levels differ. And even the percentages aren’t as important as the pounds and pence figures behind them. But it’s still useful as a guide for how providers treat smaller claims differently.

Saga does things quite differently from the rest

One major provider we haven’t included in the above table is Saga. This is because it doesn’t assess claims based on the total cost in a policy year. Instead, Saga will move you down two levels for every claim you make. So if you make multiple claims in a single policy year, you could lose your NCD much more quickly.

Another key difference with Saga is that its NCD is per policy, not per person as it is with the other providers mentioned in this article. This means all claims have the same impact on the NCD, no matter who makes them.

How Saga’s policy wide NCD compares to other insurers’ per person approach

If you consider a family policy with two adults in their 50s and two teenage children, we’d expect 80-90% of the cost of the policy to be due to the adults on the plan.

With any of the insurers we’ve covered in this article, bar Saga, each family member would have an NCD, so if a child claimed and their discount was affected, or even fully lost, it likely wouldn’t have a huge impact on the overall cost.

By contrast, Saga’s approach of a shared NCD would result in a very different outcome, as the child’s claims would affect the “shared” discount, likely resulting in a significant price rise.

Do all health insurance providers offer a no claims discount?

Most private health insurance providers in the UK offer NCDs in some form, but not all of them use a sliding scale. Vitality, for example, uses its own “ABC” model:

Age
Base inflation
Claims

So despite not using a sliding scale, claims are still an important factor that will affect the cost of your policy at renewal.

Some, like Freedom Health Insurance, do not offer an NCD at all. Although it’s likely that your claims history will still be a factor in your renewal price.

Types of claims that won’t affect your no claims discount

Some claims won’t affect your NCD at all. This varies between providers, but generally the following types of claims won’t see you move down any levels on the NCD scale:

Cash benefits - e.g. dental, optical and NHS
Remote GP consultations
Helplines and support services

Another thing to note is that any claims you make below your excess amount won’t affect your NCD. This is because your insurer won’t need to pay out unless your claim exceeds your excess.

Your excess and how it affects your no claims discount

Your excess is the amount you have to contribute towards a claim. For example, if you choose a £500 excess and the cost of your treatment is £2,000, you'll pay £500 and your insurer will pay the rest.

Most insurers let you choose your own excess, and it's directly related to the cost of your policy. If you choose a higher excess, you will pay a lower price for your cover.

This is important because any claim you make under the excess amount won't affect your NCD. Setting a higher excess may make you shoulder more of the initial cost, but it could save you money in the long run. The right choice for you will be an individual one, but it's worth considering when choosing the excess for your policy.

Protecting your no claims discount

Some insurers will give you the option of protecting your NCD. This means you'll pay a bit more for your insurance, but won't lose your discount if you make a claim. Not all providers offer this, but some (e.g. Aviva, AXA Health and The Exeter) do.

If you claim on your health insurance while your NCD is protected, you’ll lose the protection for a period - usually one or two years. If you don’t make another claim in that time, you’ll be able to add NCD protection again.

What you need to consider about private health insurance no claims discounts

Most health insurance providers offer NCDs in one form or another, but they don’t work in the same way as motor insurance NCDs. Many of them use sliding scales, which means you have more to lose than gain.

Variations in how these scales work make comparing providers difficult. The differences largely come from how much you can claim before you move down the scale and how far down you move.

Providers that allow small claims without affecting your NCD may offer more protection. But if you claim consistently and for large amounts, you’ll end up at the bottom of the scale, no matter who your insurer is.

Levels and percentages aren’t as important as the pounds and pence figures behind them. The higher the base premium, the more it will be affected by dropping down levels on the NCD scale.

Your excess can have a big impact on your NCD. A higher excess may make treatment more expensive, but it could save you money in the long run. It will also reduce your premium. In some cases, it may even save you money to pay for treatment yourself.

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Disclaimer: This information is general and what is best for you will depend on your personal circumstances. Please speak with a financial adviser or do your own research before making a decision.

Frequently Asked Questions

Does claiming on health insurance affect how much it costs?

Usually, yes. Although how, much difference it makes will depend on who your insurer is and the value of your claim. Some types of claims won't affect the cost of your policy at all.

Which health insurer offers the best no claims discount?

This depends on several factors, including the cost of the policy in pounds and pence and the frequency of your claims. But, The Exeter, WPA and Bupa have some of the most lenient rules around how claims affect your discount level. Some providers offer a higher initial percentage discount, but this may drop relatively quickly compared to others. Some insurers offer lower initial discounts but don't penalise you as heavily for smaller claims.

Does a policy excess protect my no claims discount?

In a way, yes. If your excess is higher than the cost of treatment, you won't lose any of your discount because the insurer doesn't have to pay out. So choosing a higher excess can protect your NCD as well as keeping down the cost of the policy. Some insurers will also allow you to pay for medical treatment yourself to avoid losing your NCD.

Do all members of a family policy share the same no claims discount?

Most - but not all - providers treat people named on a policy as individuals. This means you won't lose your personal NCD if somebody else needs to make a claim, keeping the overall cost of the policy lower.

Does Vitality offer a no claims discount?

Vitality doesn't offer a traditional no claims discount with a sliding scale. It uses its own “ABC” model to set its prices. Claims are still a factor in this and will affect your renewal price.

How does the AXA Health Plan no claims discount work?

The new AXA Health Plan has different NCD rules to AXA Personal Health, with smaller claims moving you fewer levels down the scale. However, AXA Health has not released the percentage discounts associated with these levels, making it difficult to compare directly.