Shopping around for insurance

If you have a complaint about an insurance provider, try to resolve it with them first. If you're not satisfied with their response, you can take your complaint to the Financial Ombudsman.

You can use price comparison websites or call different insurance providers to get quotes. Bear in mind that some insurance providers do not appear on price comparison sites, or their special deals might not be listed. Ask your bank or building society if they offer insurance products too. 

If you use a price comparison site:

• always use more than one site – no one site can list all the different providers
• try to get at least three quotes, including one that is not available on a comparison site
• the cheapest policies may not be the best value – for example, they may not cover everything you need
• make sure you're comparing like with like – check things like voluntary excess payments, for example
• the first result that comes up may not be the best
• clicking on a quote will take you to an insurance provider’s website – where they may try to sell you extra products
• double-check the policy before and after you buy. Check the terms carefully, especially the details that are important to you. Also check the information you've given is accurate and honest – if the details are not right, you may not be covered.

MoneyHelper has more information about using price comparison sites.

You can also compare the Defaqto star ratings of insurance policies. These star ratings are based on policies’ features and benefits – they do not take price or customer service into account.

If you have special requirements for your insurance, it’s better to contact insurance providers directly. Or you could use an insurance broker. A broker may be able to give you expert advice. They earn their money from commission, so they won’t charge a fee. You can find a broker on the British Insurance Brokers' Association website.

With any insurance policy, check the terms and conditions and any exclusions (things that are not covered) before you buy. Check the excesses as well. An excess is the amount you agree to pay when you make a claim, before the insurance provider pays anything. Increasing your excess may result in a cheaper policy, but can leave you out of pocket if you have to make a claim.

When you buy or renew your home insurance policy, base your decision on the cover provided, not just the price. The cheapest policy might not be right for you if it has a high excess or does not cover what you want, for example.

Buildings insurance covers damage to the structure of your home. This includes the walls, roof, floors and any permanent fixtures such as a toilet or fitted kitchen. If you own your home, you’ll need buildings insurance. It’s usually a condition of your mortgage, but it’s a good idea to have protection even if you own your home outright. If it’s a leasehold flat, the building may be insured by the landlord who owns the freehold. Check your lease to find out who’s responsible.

You need to insure yourself for the amount it would cost to completely rebuild your home. This is usually less than the sale price of your home. You can find advice about working out the cost of rebuilding your home on the Association of British Insurers website, or use their rebuilding cost calculator.

If you’re renting you probably do not need buildings cover, but you should check your tenancy agreement to make sure this is included. Your landlord must give you this information if you ask for it. You may also want to consider taking out contents insurance for your peace of mind.

Contents insurance covers your belongings if they’re stolen, lost or damaged. Buildings and contents insurance are often sold together. Unlike buildings insurance, you do not need contents insurance to buy a house.

You may be able to reduce your home insurance premiums if you have good security. This can include alarms or good quality locks, or being in a Neighbourhood Watch scheme. Some companies offer cheaper policies for older people, who may be considered lower risk. The Association of British Insurers has a guide to improving your home security.

When you take out a policy, be honest with your insurer about the security that you have and how you use it. If your home is broken into and you were not using the measures you said you had, your insurer may reject all or part of your claim. Check the small print or phone your insurance company to find out what level of security your policy requires.

Make sure you understand what the policy covers. For example, does it offer new for old to cover the cost of replacing items? Are there limits to the amount you can claim? MoneyHelper has a guide to what a good contents insurance policy looks like.

When buying home insurance, compare levels of cover and check the exclusions. The following may not be included as standard:

• personal possessions cover – insurance for things you own that you take outside the home, such as jewellery or a laptop
• comprehensive accidental damage cover – cover for damage you cause by accident
• home emergency cover – for urgent repairs to things like your boiler, plumbing, electrics or roof.

MoneyHelper has more information on getting a good deal on home insurance.

Travel insurance typically covers:

• medical cover
• cancellation
• baggage and personal belongings
• personal liability
• delays.

MoneyHelper has information about what to look for in a good travel insurance policy.

Buy your insurance as soon as you’ve booked your travel so you’re covered if you need to cancel. But be wary of buying insurance that’s offered with your holiday. You may get better and cheaper cover elsewhere. Your bank may offer free travel insurance with your account, but you should check the terms and conditions to make sure you’re fully covered.

Travel insurance can become more expensive as you get older, especially if you have a medical condition or disability. You must declare any pre-existing medical conditions or you may not be covered, even if you’re not currently affected by your condition.

Contact organisations that support people with your condition for advice. It may be worth using a broker to help you find the best policy. MoneyHelper has more information about travel insurance for over 65s and medical conditions.

If you’re travelling in Europe, a UK Global Health Insurance Card (GHIC) will entitle you to free or reduced-cost healthcare, but this is not the same as travel insurance. For example, it will not cover any private healthcare costs or the cost of travelling back home in an emergency. The GHIC has now replaced the European Health Insurance Card (EHIC). If you have one of these, it will still be valid until the expiry date. Once it expires, you’ll need to apply for a GHIC. You can find out more about the GHIC and EHIC at nhs.uk.