How to compare insurance policies
Look beyond the headline price
Comparing insurance policies by price alone is one of the most common mistakes people make. Two policies at similar prices can offer very different levels of protection. Here is what to look at when comparing policies.
Cover limits
Check the maximum amount the policy will pay for each type of claim. For contents, check the total sum insured and any per-item or per-category limits (for example, a single-article limit of £1,500 may not cover your laptop). For buildings, check the total rebuild cost limit.
Exclusions
Read the policy exclusions carefully. Common exclusions include: pre-existing medical conditions (for travel, pet, or income protection); accidental damage (often an add-on, not standard); subsidence (sometimes excluded or subject to a high compulsory excess); and items in the garden or away from home.
Excess levels
Check both the compulsory excess (set by the insurer) and any voluntary excess you have chosen. A lower premium with a high excess may be a poor trade-off if you are likely to claim. Our excess guide explains how this works.
Claims process and insurer reputation
A policy is only as good as the claims experience. Check the insurer's Financial Conduct Authority (FCA) authorisation and look at independent review sites or the ABI for claims satisfaction data. A cheap policy that is difficult to claim against is rarely good value.
Add-ons and features
Consider which optional add-ons you actually need: legal expenses cover, accidental damage, home emergency cover, curtailment cover (travel), or specified high-value items. Adding only what you need keeps cost down while ensuring you are properly covered.
Renewal terms
Check whether the premium is fixed or subject to change at renewal. For pet insurance, understand how the policy treats conditions that arise in year one — a cheaper policy that excludes conditions at renewal may end up costing more over the life of your pet.
Frequently asked questions
Not necessarily. The cheapest policy may have higher excesses, lower cover limits, more exclusions, or a lower claims satisfaction rating. A slightly more expensive policy may offer significantly better protection. Compare like for like.
Sum insured is the maximum amount your insurer will pay out on a claim. If your claim exceeds this amount, you pay the difference. Check that your sum insured reflects the true replacement or rebuild cost.
An exclusion is a circumstance or item that your policy does not cover. Common exclusions include pre-existing conditions (pet/health/travel), wear and tear, deliberate damage, and certain high-value items unless specified.
New for old means the insurer will pay the cost of replacing your item with a new equivalent, not an amount reduced for age or wear. Some policies only pay the second-hand or depreciated value — check the policy terms.
Related calculators
Car insurance
Voluntary Excess Calculator
Compare the cost trade-off between lower and higher voluntary excess on car insurance.
Home insurance
Underinsurance Calculator
Check whether your sum insured may leave you underinsured and estimate the potential shortfall.
Pet insurance
Pet Insurance Cost Estimator
Get an illustrative monthly cost band for pet insurance based on your pet and cover preferences.
Disclaimer
This is a simplified estimate based on the assumptions shown above. It isn't a quote, and a real insurer may arrive at a different figure. Use it as a starting point, then check the details with your insurer or adviser.