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The difference between advice and information

When you get insurance advice, the broker or adviser looks at your individual circumstances and needs and recommends a policy to meet them. This often involves a face-to-face meeting, but you can get advice in other ways, for example by telephone, email, or through the post. Under FSA rules, if the advice turns out to be unsuitable you have the right to complain and, in some circumstances, may be able to claim compensation.

Buying without advice

UK firms that sell insurance without advice still have to follow FSA rules, for example by providing you with certain information about their service and products (see next section). But if you buy this way it's for you to decide whether or not you think the policy is suitable for you. If things go wrong it may be harder to complain.

Information the insurance broker must give you

FSA authorised firms must follow certain rules and standards when dealing with you, including giving you certain information.

Information about a broker's service

Before you buy an insurance policy the broker or company you deal with must give you a standard format ‘Keyfacts’ document describing the type of service they offer. This document will confirm, amongst other things:

• that they are authorised by the FSA to sell insurance
• whether they’re offering advice or information only
• how they charge for their service
• whose products they choose from in the market

Information about the insurance policy

For general (non-investment type) insurance they must also give you a Keyfacts document summarising the main features and costs of the policy before you buy.

For investment-type insurance they must give you a more detailed key features document which includes an illustration of how your investment might perform over time.

How to check if a firm is FSA authorised

You can check whether a firm or individual is FSA authorised by using their online firm check service.

• Use the FSA online firm check service Opens new window

Firms operating from outside the UK

Most European insurance advisers are regulated in their own country, but you'll need to check this - and what rights you have should the product turn out to be unsuitable. Firms operating from outside the European Economic Area (or sometimes within it, but from outside the UK), or using an overseas call centre, may not be regulated at all.

More useful links

• Search for an insurance broker (excluding life insurance) Opens new window
• Search for an independent life insurance adviser Opens new window
• Search for an insurance adviser on the Personal Finance Society website Opens new window
• Information on consumer insurance from the Association of British Insurers Opens new window
• Main ways to save or invest your money
• Reviewing your current finances