How to Compare Insurance Policies: A UK Buyer’s Checklist
23 June 2026
How to compare insurance policies in the UK on what actually matters — total excess, sums insured, single-item limits, exclusions and settlement terms — not just price.
By Alice T · PolicyChecker editorial team
Knowing how to compare insurance policies properly is the single most valuable money skill most UK households never learn. Comparison sites rank on price and a few headline features, so two policies can look identical while one quietly carries a £500 water-damage excess and a 30-day unoccupancy limit the other doesn't. This is the buyer's checklist for comparing insurance policies on what actually matters — so you buy cover that pays out, not just the cheapest green button.
Why you can't compare insurance policies on price alone
Price tells you what a policy costs, not what it does. A cheaper premium can mean a higher excess, lower limits, tighter exclusions, or indemnity (rather than new-for-old) settlement. Under the FCA's Consumer Duty, insurers must offer fair value — but "fair value" still isn't "right for you." To compare insurance policies meaningfully, you have to look underneath the price.
The checklist: how to compare insurance policies in the UK
Work through these for each policy on your shortlist. They're the points that decide whether a claim gets paid in full.
1. The total excess (not just the headline)
Add the compulsory and voluntary excess together, then check for per-peril excesses — escape of water and subsidence often carry much higher ones. A "£100 excess" policy can mean £600 on a leak. Compare the real, total excess for the claims you're most likely to make.
2. Sums insured and the average clause
Check the contents sum insured reflects full replacement value and the buildings figure is a rebuild cost, not market value. If a policy applies the average clause, underinsuring means every payout is cut proportionally. Compare whether each policy's limits genuinely cover you.
3. Single-item limits
Compare the single-item limit (often £1,500–£2,000) and whether valuables need to be specified. A policy with a higher single-item limit can be worth more to you than one that's a few pounds cheaper.
4. What's actually covered
Compare the Insurance Product Information Document (IPID) for each policy — the standardised summary of cover and exclusions. If a feature you care about (accidental damage, away-from-home cover, legal expenses) isn't there, it's not included.
5. The exclusions
Read the "what is not covered" section for each. Unoccupancy limits, "no forced entry" theft conditions, business-use exclusions and gradual-damage clauses vary widely between policies and are where claims most often fail.
6. How claims are settled
Compare new-for-old versus indemnity settlement. New-for-old replaces items at today's price; indemnity deducts for age and wear. Cheaper policies often quietly switch to indemnity.
7. Your obligations (conditions)
Compare the conditions each policy places on you — required locks or alarms, reporting timeframes, "reasonable care." Break a condition and even a valid claim can be refused.
A simple way to compare insurance policies side by side
For your top two or three quotes, build a quick table with one row each for: total excess, contents sum insured, single-item limit, settlement type (new-for-old?), key exclusions, and your conditions. Suddenly the "cheaper" policy that's actually weaker is obvious — and you're comparing insurance policies the way a professional does, on substance.
Use comparison sites as a start, not a finish
Comparison sites are excellent for building a shortlist and seeing the price landscape. They're poor at the wording underneath, which is exactly the bit that decides claims. So: use the comparison site to shortlist, then read the IPID and exclusions of your top picks before you buy.
Compare insurance policies on what pays out — not just price
The cheapest policy that won't pay out is the most expensive thing you can buy. Comparing insurance policies properly takes a few extra minutes on the excess, the limits, the exclusions and the settlement terms — and it's the difference between cover that works and cover that disappoints when you claim. PolicyChecker does this for you, scoring a policy's excesses, limits and exclusions in plain English so you can compare insurance policies with your eyes open before you buy.
This guide is general information, not financial advice. For free, impartial help, see Citizens Advice or the Financial Ombudsman Service. PolicyChecker helps UK consumers understand an insurance policy before they buy — check a policy.