Getting insurance quotes
What you need to know about getting an insurance quote
When getting an insurance quote, it’s important to understand what affects the price and what information insurers must give you. Comparing policies helps you find cover that meets your needs, and this page explains how quotes work, what your rights are at renewal, what responsibilities you have when applying and how to avoid common pitfalls when choosing insurance.
Getting insurance quotes can help you save money and ensure you get the right cover for your needs. The insurance market changes regularly, so it’s important to shop around and compare options. Always check for discounts, download our motor insurance and home insurance checklists. Remember that the lowest premium may not always offer the best value.
How does insurance renewal work?
- Non-life insurance policies (like home, car, health and general liability) must be renewed every year
- Under the Central Bank’s Consumer Protection Code, your insurance company must send you a renewal notice at least 20 working days before your policy ends so you can shop around if you wish.
The renewal notice must include:
- The premiums paid for the policy in the previous five years
- A list of any claims, including third-party claims, paid in the previous five years
What are your responsibilities when applying for insurance?
You must answer all questions fully and honestly. Only provide information requested by the insurer – no need to volunteer extra details.
Remember, the insurance company must ask you all relevant questions in plain, clear language.
What you should consider with long-term insurance policies?
- Think carefully about your needs before buying long-term insurance, such as life insurance.
- Shop around for a policy that suits your needs and offers long-term value.
- Make sure your cover matches your current circumstances. You can adjust your cover as your needs change.
What happens if your policy terms change?
If there is a change to the terms and conditions of your non-life or life insurance policy, your insurer must notify you at least 20 working days before renewal.
Where can you find checklists for comparing insurance quotes?
Download the motor insurance and home insurance shopping around checklists to help you keep track of your quotes and key information.
What about auto-renewal?
If your policy is set to auto-renew, your insurer must include the following in your renewal notice:
- Your right to cancel the automatic renewal
- How to cancel the automatic renewal
- The impact of cancelling automatic renewal
- The options available for cancelling
- That the policy will renew automatically if you do not cancel before a specified date
What’s the best way to shop around for insurance?
- You can buy insurance directly from an insurance company or through a bank or broker.
- Premiums may differ depending on how you buy – brokers may offer special deals or access to specialist insurers.
- You can get quotes online or by phone. Online quotes may be cheaper due to lower costs.
- Always bargain, especially for annual renewals. Ask your current insurer to match or beat a competitor’s quote.
- Check how long each quote is valid for.
- If you pay by instalments, check the Annual Percentage Rate (APR) to compare costs.
- Group insurance schemes (through work or associations) may offer better value to suit your needs.
What information must insurers give you?
Under the Central Bank’s Consumer Protection Code, insurers must:
- Tell you how long their quote is valid for
- Make you aware of any special conditions or restrictions (for serious illness cover)
- Tell you about discounts or extra premiums when quoting
- Tell you about any terms and conditions that apply to such a discount
- Explain any difference in cost between paying the premium by way of a lump sum or in instalments
- Warn you that incorrect or incomplete information can affect your cover or claims
- Issue your policy document within 5 working days of providing cover
What questions should you ask before buying insurance?
- What type and level of cover best meets my needs?
- What loadings are being applied?
- Do you qualify for any discounts?
- Can you reduce my premium by choosing a larger excess?
- What is included and excluded in the policy?
What is excess?
Excess is the amount of money you must pay yourself when you make an insurance claim. It’s the first part of the cost that you cover, and the insurer pays the rest. It’s usually a fixed amount. If the cost of the damage is less than the excess, you can’t claim.
Some claims have no excess (for example, windscreen repairs on many car insurance policies), while others can have a much higher excess (e.g. subsidence on home insurance).
Always ask your insurer to explain how the excess works on your policy, including when it applies, how much you must pay yourself and whether different excesses apply to different types of claims.
What are loadings?
Always ask your insurer to explain any loadings on your policy. These are extra charges added to your premium because the insurer sees you as a higher risk, and they can significantly increase what you pay.
Questions for brokers
- How many quotes will your broker look for?
- Does your broker provide extra services, such as help with claims?
- What fee, if any, will you be charged by my broker or bank? Is this instead of commission, or will they also receive commission?
- Could you get a lower quote by dealing directly with the insurer or looking online?
What should you do when buying insurance?
- Answer all application questions fully and honestly. If you do not, your policy may not be valid and you may not be able to claim.
- Always cancel old policies if you switch providers. Inform your bank and insurer in writing.
- If your insurer cancels your policy, they must:
- Repay any outstanding balance if you paid in full
- Provide the reason for cancellation
- Not charge a fee for cancelling
