Insurance Advice and Support

Insurance is a contract. You pay a premium, and in return the insurer agrees to pay for certain losses set out in the policy. What is covered — and what is not — is decided by the policy wording, not by what a salesperson says.

Sixpence Support UK does not sell insurance, does not receive commission for insurance and does not recommend any particular insurer. This page is general information only, not financial advice.

• Read the policy summary and the full policy wording before paying.
• Check the excess — the amount you pay yourself on every claim.
• Check limits: the most the insurer will pay for each type of loss.
• Check whether cover you assume is included is actually an optional extra (for example legal expenses, breakdown cover, keys or a courtesy car).
• Answer every question truthfully and completely. Wrong or missing information can void a claim.
• Tell the insurer about anything they ask about, including health conditions, past claims, convictions, home business use or building work.
• Compare the cover, not only the price. The cheapest policy may exclude what matters most to you.
• Keep a copy of everything you were told and shown when you bought.

Paying monthly usually costs more than paying yearly, because monthly payments are often a credit agreement with interest. Check the total yearly cost, shown as the APR, before choosing.

• Work out what you can genuinely afford after rent or mortgage, food, energy and other essentials.
• Ask whether reducing optional extras, raising the excess or paying annually would lower the cost.
• Cancel policies you are paying for twice, for example travel or gadget cover included with a bank account.
• Never take out cover you do not understand because you feel rushed.

Some insurance is a legal requirement. Driving without at least third-party motor insurance is an offence, and you can check whether a vehicle is insured on askMID. Buildings insurance is usually a condition of a mortgage.

Most disputes come from exclusions and conditions rather than the price. Look for:

• Excluded causes, such as wear and tear, gradual damage, frost damage or pre-existing conditions.
• Conditions you must meet, such as fitting named locks, servicing a boiler, or reporting a theft to the police within a set time.
• Time limits for telling the insurer about a claim or a change in circumstances.
• Geographic limits on travel cover, and age or activity limits.
• Fees for changing your policy, cancelling it, or paying late.
• What happens at renewal — many policies renew automatically at a higher price.

You normally have at least 14 days to change your mind after buying or renewing most consumer insurance, though the insurer may charge for cover already provided.

Almost every firm that sells, arranges or administers insurance in the UK must be authorised or registered by the Financial Conduct Authority. Before you pay anyone:

• Search the firm’s name and reference number on the FCA Register.
• Check the contact details on the Register match the ones you were given, not details from an email or advert.
• Check the firm is permitted to do the business it is offering you.
• Look at the FCA’s Warning List of firms it knows are operating without authorisation.

Dealing with an authorised firm also matters if things go wrong: it is what gives you access to the Financial Ombudsman Service and, in some cases, the Financial Services Compensation Scheme.

• “Ghost broking” — someone sells a motor policy that is fake or was set up using false details. The driver is then uninsured.
• Cover advertised only through social media, messaging apps or word of mouth, with no authorised firm behind it.
• Pressure to pay quickly by bank transfer, gift card or cryptocurrency.
• Prices far below everything else you have seen.
• Emails or texts about a renewal or refund containing a link asking you to “confirm” bank details.
• Callers who already know some of your details and use them to sound genuine.

If you have paid money you believe is lost to a scam, contact your bank straight away and report it to Action Fraud (in Scotland, report to Police Scotland on 101). See also our page on Scams, Fraud and Suspicious Messages.

• Tell the insurer as soon as you can, and follow the claim steps in the policy.
• Take photographs and keep receipts, reports and crime reference numbers.
• Keep a note of who you spoke to, when, and what was agreed.
• Ask for the reason in writing if a claim is refused or reduced, with the policy term relied on.
• You can ask for a decision to be reviewed, and then make a formal complaint.

Complain to the firm first, in writing if you can, and keep a copy.

• Say what happened, what you want put right, and include your policy or claim number.
• The firm should normally give a final response within eight weeks.
• If you are unhappy with the response, or eight weeks have passed, you can take it free of charge to the Financial Ombudsman Service. You usually have six months from the final response to do this.
• The Financial Ombudsman Service is independent and free. You do not need a solicitor or a claims company.

Financial Ombudsman Service — 0800 023 4567. Our Letter Support service can help you write or understand a complaint letter.

If an authorised insurer or broker fails, the Financial Services Compensation Scheme (FSCS) may be able to protect you. Cover depends on the type of insurance and when the policy was taken out, so check the FSCS website for your situation. FSCS protection applies only to firms authorised in the UK — another reason to check the FCA Register before buying.

Do not simply stop paying, and do not cancel motor or buildings insurance you are required to have. Act early instead:

• Contact the insurer and explain your situation. Ask what can be changed to reduce the cost.
• Ask to be treated as a customer in vulnerable circumstances if illness, disability, bereavement, caring or hardship is involved.
• Ask for the payment plan to be reviewed rather than the policy cancelled.
• Get free debt advice the same week if other bills are also unaffordable.

Free debt help: National Debtline 0808 808 4000 (England, Wales and Scotland), StepChange 0800 138 1111 (UK-wide), Advice NI 0800 915 4604 (Northern Ireland). See also our pages on Finance Companies, Loans and Credit and Debt Collectors and Bailiffs.

• MoneyHelper — free and impartial money guidance, backed by government.
• Citizens Advice — consumer help in England and Wales. Separate services in Scotland and Northern Ireland.
• FCA Register — check a firm is authorised before you pay.
• Financial Ombudsman Service — free, independent complaints service. 0800 023 4567.
• FSCS — protection if an authorised firm fails.
• Advice NI — free advice in Northern Ireland.

This page is general information for the whole UK and is not financial, legal or insurance advice. Rules, limits and compensation levels can change, and some consumer rules differ in Northern Ireland and Scotland. Always check the official links above and get free advice about your own circumstances before making a decision.