Most of us are familiar with the concept of a no-claims discount when it comes to our car insurance policies.
But did you know that you might qualify for a no-claims discount on your health plan, too?
Understanding how a no-claims discount can influence your health plan can help you reduce how much you pay for your private health insurance while maintaining comprehensive coverage and access to a wealth of benefits.
What is a no-claims discount?
A no-claims discount is a reward insurance companies give to plan holders who do not make any claims during a specific period – usually a plan or policy year.
The idea behind no-claims discounts is to incentivise you towards responsible and "only when necessary" use of your plan, which can help insurance providers reduce their risk exposure and costs.
These lower costs then allow insurance providers to reward you with a lower premium.
At the same time, health insurers generally don't wish you to feel discouraged from using your plan – that's the point of having it, after all! – so they may apply your no-claims discount discretely when rates change or your plan is due for renewal, for example.
How does a no-claims discount work in health insurance?
No-claims discounts are applied to health insurance plans like they are to other types of insurance – even if you aren’t fully aware that it’s there. As with a no-claims discount on your car, your discount on your health plan may increase the longer you go without making a claim. However, due to medical care costs and inflation, your no-claims discount may be capped at a maximum percentage or a number of years over which you can earn it.
If available, the specifics of your no-claims discount will depend on your insurer and policy type. Some common ways you may receive your no-claims discount include:
- A percentage-based discount. This is the most common way a no-claims discount is applied, although you may not know exactly how much discount you’re receiving.
- Stepped discounts. This is another common approach – often linked with a percentage-based discount – that increases your discount the longer you go without claiming.
- Cashback or bonus schemes. As an alternative to a traditional discount, some insurers may offer cashback rewards, plan bonuses, or access to additional features and benefits at no extra cost.
How much is a no-claims discount in health insurance?
Your discount will depend on multiple factors, including your insurer, plan type, and location.
How does making a claim affect my no-claims discount?
Typically, making a claim will reset or reduce your no-claims discount. This is why many insurers apply a no-claims discount in the background. While a no-claims discount saves you money, your health is the most important thing, and an insurer wouldn't want you not to undergo a consultation or treatment because you're worried about a no-claims discount.
After all, one of the reasons you may have a private health plan in the first place is to avoid paying expensive medical bills!
Is a no-claims discount worth it?
A better way to look at it is that it’s a nice bonus if you’ve been able to stay healthy and not needed to use your health plan throughout the year.
If you’re generally healthy and unlikely to use your health plan too much and mainly have private medical insurance for peace of mind, then a no-claims discount is worth looking out for. In contrast, if you have ongoing medical or treatment needs, such as a chronic condition that requires long-term physiotherapy or prescription medication, then a no-claims discount isn't going to be an essential or impactful benefit for you.
How does Now Health International help me earn my no-claims discount?
At Now Health International, we want to be more than your health insurer. That's why we offer a range of added value services and benefits, such as our Employee and Member Assistance Programmes, designed to help you proactively manage your well-being and stay healthy, hopefully reducing your need to use your plan.
Does my no-claims discount still apply alongside other discounts?
Yes! If you're eligible for any existing discounts, such as our family or large family discount, or you're in the second year of an introductory discount, any no-claims discount on your Now Health International plan will apply in addition to these. This means you can enjoy even more significant savings and value from one of our award-winning plans!
Start earning your no-claims discount now!
Discover our award-winning international health plans for yourself, and start earning your no-claims discount with Now Health International today.