Compare before you buy: Health insurance shoppers save up to 20% by evaluating multiple plans, says study
Comparing health insurance plans before buying could significantly reduce your premium, according to a Policybazaar analysis. The report found that customers who evaluate multiple plans pay, on average, 20% lower premiums while also finding policies better suited to their healthcare needs and budgets.
- Jul 18, 2026,
- Updated Jul 18, 2026 1:22 PM IST
India's health insurance buyers are increasingly comparing multiple policies before making a purchase, and the exercise is translating into meaningful savings. According to an analysis by Policybazaar, customers who compare health insurance plans before buying pay, on average, 20% lower premiums than those who purchase without evaluating different options.
The report highlights a growing shift towards comparison-led insurance buying as consumers become more aware of product features and pricing differences. It found that nearly 75% of health insurance buyers now compare at least three plans before finalising their purchase, indicating that digital platforms are playing a bigger role in helping customers make informed decisions.
Premiums can vary by up to 70%
One of the key findings of the analysis is the wide variation in premiums for similar customer profiles. According to Policybazaar, health insurance premiums can differ by as much as 70% across insurers due to differences in product structures, features and pricing strategies.
For instance, a ₹10 lakh family floater policy for a young family of three in Delhi is available at monthly premiums ranging from ₹773 to ₹2,426, a difference of nearly 68%. Likewise, a 62-year-old couple in Delhi with pre-existing medical conditions could pay anywhere between ₹2,423 and ₹5,562 per month for similar health insurance coverage, reflecting a premium variation of around 60%.
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Comparison helps reduce insurance costs
The report found that customers who actively compare multiple plans generally end up paying significantly lower premiums. On average, buyers who compare policies settle for premiums of around ₹25,000, while those who do not compare typically choose plans costing close to ₹30,000. This translates into savings of roughly 20% on the final premium.
Policybazaar said the savings are possible because customers are able to evaluate products with similar coverage but different pricing and decide which policy best suits their requirements and budget.
Health insurance comparison: Key findings from Policybazaar analysis
| Parameter | Findings |
|---|---|
| Average premium savings | Buyers who compare plans pay around 20% lower premiums than those who don't |
| Comparison behaviour | 75% of buyers compare at least three health insurance plans before purchasing |
| Premium variation | Premiums can vary by up to 70% for similar customer profiles across insurers |
| Young family example | ₹10 lakh family floater in Delhi: ₹773–₹2,426/month (around 68% difference) |
| Senior couple example | 62-year-old couple with pre-existing conditions: ₹2,423–₹5,562/month (around 60% difference) |
| Average premium after comparison | Around ₹25,000 |
| Average premium without comparison | Around ₹30,000 |
| Key factors buyers compare | Premium, hospital network, room rent limits, deductibles, co-payment clauses, policy benefits |
| Most active comparison group | Customers aged 28–45 years, especially families |
| Industry backdrop | Medical inflation of 14–15% is driving demand for better-value health insurance plans |
Buyers are looking beyond price
The report noted that insurance buyers are no longer comparing policies only on premium. Customers are increasingly weighing trade-offs between affordability and coverage by evaluating features such as hospital network, room rent eligibility, deductibles and co-payment clauses before making a purchase.
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According to the analysis, first-time buyers remain highly price-sensitive and primarily compare plans to reduce premiums. Repeat buyers, however, spend more time assessing claims experience, policy benefits and long-term value before selecting a product.
Comparison activity is highest among customers aged between 28 and 45 years, particularly families, suggesting that financially conscious households are using digital tools to optimise healthcare costs.
Medical inflation driving smarter decisions
Commenting on the findings, Sarbvir Singh, Joint Group CEO of PB Fintech, said digital comparison is helping reduce information asymmetry in the insurance sector by allowing customers to evaluate multiple products simultaneously.
"When customers can evaluate multiple options together, it brings greater clarity to pricing. Since search costs decline through digital comparison, this access to choice helps people find plans that are better aligned with their needs and budgets," Singh said.
The report comes at a time when India is experiencing medical inflation of around 14-15%, making health insurance affordability an increasing concern. Policybazaar said comparison tools are emerging as an important way for families to maintain adequate health cover without a proportional increase in out-of-pocket costs. By comparing policies, customers can identify plans that strike a balance between premium, coverage and long-term financial protection rather than simply opting for the cheapest available option.
MUST READ: 51% of Gen Z invest but delay buying health insurance, leaving many financially vulnerable: Report
India's health insurance buyers are increasingly comparing multiple policies before making a purchase, and the exercise is translating into meaningful savings. According to an analysis by Policybazaar, customers who compare health insurance plans before buying pay, on average, 20% lower premiums than those who purchase without evaluating different options.
The report highlights a growing shift towards comparison-led insurance buying as consumers become more aware of product features and pricing differences. It found that nearly 75% of health insurance buyers now compare at least three plans before finalising their purchase, indicating that digital platforms are playing a bigger role in helping customers make informed decisions.
Premiums can vary by up to 70%
One of the key findings of the analysis is the wide variation in premiums for similar customer profiles. According to Policybazaar, health insurance premiums can differ by as much as 70% across insurers due to differences in product structures, features and pricing strategies.
For instance, a ₹10 lakh family floater policy for a young family of three in Delhi is available at monthly premiums ranging from ₹773 to ₹2,426, a difference of nearly 68%. Likewise, a 62-year-old couple in Delhi with pre-existing medical conditions could pay anywhere between ₹2,423 and ₹5,562 per month for similar health insurance coverage, reflecting a premium variation of around 60%.
MUST READ: Monsoon diseases are rising: Are you financially prepared for a health emergency?
Comparison helps reduce insurance costs
The report found that customers who actively compare multiple plans generally end up paying significantly lower premiums. On average, buyers who compare policies settle for premiums of around ₹25,000, while those who do not compare typically choose plans costing close to ₹30,000. This translates into savings of roughly 20% on the final premium.
Policybazaar said the savings are possible because customers are able to evaluate products with similar coverage but different pricing and decide which policy best suits their requirements and budget.
Health insurance comparison: Key findings from Policybazaar analysis
| Parameter | Findings |
|---|---|
| Average premium savings | Buyers who compare plans pay around 20% lower premiums than those who don't |
| Comparison behaviour | 75% of buyers compare at least three health insurance plans before purchasing |
| Premium variation | Premiums can vary by up to 70% for similar customer profiles across insurers |
| Young family example | ₹10 lakh family floater in Delhi: ₹773–₹2,426/month (around 68% difference) |
| Senior couple example | 62-year-old couple with pre-existing conditions: ₹2,423–₹5,562/month (around 60% difference) |
| Average premium after comparison | Around ₹25,000 |
| Average premium without comparison | Around ₹30,000 |
| Key factors buyers compare | Premium, hospital network, room rent limits, deductibles, co-payment clauses, policy benefits |
| Most active comparison group | Customers aged 28–45 years, especially families |
| Industry backdrop | Medical inflation of 14–15% is driving demand for better-value health insurance plans |
Buyers are looking beyond price
The report noted that insurance buyers are no longer comparing policies only on premium. Customers are increasingly weighing trade-offs between affordability and coverage by evaluating features such as hospital network, room rent eligibility, deductibles and co-payment clauses before making a purchase.
MUST READ: Will using E20 petrol affect your motor insurance claim? Here's what policyholders should know
According to the analysis, first-time buyers remain highly price-sensitive and primarily compare plans to reduce premiums. Repeat buyers, however, spend more time assessing claims experience, policy benefits and long-term value before selecting a product.
Comparison activity is highest among customers aged between 28 and 45 years, particularly families, suggesting that financially conscious households are using digital tools to optimise healthcare costs.
Medical inflation driving smarter decisions
Commenting on the findings, Sarbvir Singh, Joint Group CEO of PB Fintech, said digital comparison is helping reduce information asymmetry in the insurance sector by allowing customers to evaluate multiple products simultaneously.
"When customers can evaluate multiple options together, it brings greater clarity to pricing. Since search costs decline through digital comparison, this access to choice helps people find plans that are better aligned with their needs and budgets," Singh said.
The report comes at a time when India is experiencing medical inflation of around 14-15%, making health insurance affordability an increasing concern. Policybazaar said comparison tools are emerging as an important way for families to maintain adequate health cover without a proportional increase in out-of-pocket costs. By comparing policies, customers can identify plans that strike a balance between premium, coverage and long-term financial protection rather than simply opting for the cheapest available option.
MUST READ: 51% of Gen Z invest but delay buying health insurance, leaving many financially vulnerable: Report