Compare before you buy: Health insurance shoppers save up to 20% by evaluating multiple plans, says study

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