Types of insurance

We provide a brief outline of the types of insurance here, but if you'd like more information, see our Product news section or the Association of British Insurers' (ABI) Information zone website. The ABI represents the interests of the UK's insurance industry and provides information for consumers and firms.

We regulate most sales of pure protection and general insurance.


What are pure protection and general insurance?
Pure protection insurance includes:

term assurance (life insurance);
critical illness insurance;
income protection insurance; and
payment protection insurance – includes elements of pure protection and general insurance.
 

General insurance includes:

motor insurance;
household insurance;
some travel insurance (see below for travel insurance we do not regulate);
health cover; and
pet insurance.

We also regulate the sale of payment protection insurance, which often includes elements of both general insurance and pure protection insurance.


What isn't covered by our rules?

Our selling rules don't cover:

travel insurance sold in connection with travel arrangements (eg a holiday or a flight);
the sale of extended warranties on non-motor goods (such as on electrical goods);
where the person selling the insurance is also arranging the travel or providing the goods.

Even where our rules don't cover the sale of a policy, they do cover the insurance company providing the policy, providing they are based in the UK and regulated by us

Buying insurance

You don't have to take out most insurance but for peace of mind, you may wish to consider some. You can try our Financial health check to help you priorities your goals.

Generally, firms selling insurance and those providing insurance cover (underwriting the risk) have to be regulated by us, or be the agent of a regulated firm. There are some exceptions, for example travel agents that sell travel insurance do not usually need to be regulated by us.

Regulated firms and their agents are put on our Register and have to meet certain standards. Always make sure that the firm you use is on our Register before handing over your money. If they aren't regulated by us and things go wrong, you won't have access to complaints and compensation procedures. To find out if a firm is on our Register.

You can buy insurance directly from insurers over the phone, internet or by mail, but you can also buy insurance from other types of firms such as banks, building societies, insurance brokers, financial advisers, mortgage brokers, or supermarkets.

Get the facts
Insurance differs in what it covers and what it doesn't (the exclusions). Read the policy summary that the insurance company will give you to find out exactly what you're getting and use it to shop around and compare other policies - see Getting help.

Whatever type of insurance you decide to take out, always:

ensure the firm is authorised by us to sell insurance.
disclose the full facts when applying for insurance – if you don't, you could invalidate your policy and the insurance company will not pay out in the event of a claim;
read the policy summary for exclusions – to ensure that you choose the right policy for you; and
shop around using the documents to ensure you get the best deal for you. Some policies might be cheaper than others, but they may not offer the same level of protection.