# How to Make an Insurance Claim > A step-by-step guide to making an insurance claim in the UK — what to do first, how the process works, what an excess is, and how to handle a dispute if your claim is rejected. *Section: Personal Finance — By Rachel Stone (Personal Finance Editor) — Published August 4, 2025 — 6 min read* Canonical URL: https://dailyjunction.org/business-finance/how-to-claim-on-insurance Tags: insurance claims, insurance, excess, consumer rights, complaints ## Key takeaways - An insurance claim is a formal request to your insurer to pay out under the terms of your policy after a loss or event it covers. - Act quickly: tell your insurer as soon as possible, keep evidence, and read your policy to check what is covered. - You usually pay an excess — a fixed amount you contribute towards each claim — before the insurer pays the rest. - Claiming can affect future premiums and any no-claims discount, so weigh small claims against the cost. - If a claim is unfairly rejected, you can complain and then escalate free to the Financial Ombudsman Service. When something goes wrong — a car accident, a burst pipe, a stolen phone, a cancelled holiday — your insurance is only as good as the claims process behind it. Yet many people find the moment they actually need to claim is the moment they realise they are not sure how it works. What do you do first? What will it cost you? How long does it take? And what happens if the insurer says no? This guide walks through making an insurance claim in the UK from start to finish, so you know what to expect and how to give yourself the best chance of a fair payout. *This article is general information about making insurance claims, not legal or financial advice. Always check your own policy wording and, for anything significant or disputed, consider free help from Citizens Advice or MoneyHelper.* ## What an insurance claim is **An insurance claim is a formal request you make to your insurer to pay out under the terms of your policy after an event it covers — such as damage, loss, theft, injury or a liability.** In exchange for the premiums you have paid, the insurer agrees to cover certain costs, and a claim is how you call on that promise. The core principle is *indemnity*: most insurance aims to put you back in the financial position you were in before the loss, no better and no worse. That is why an insurer pays to repair or replace what was lost, rather than simply handing over a windfall, and why it will deduct things like your excess and any wear and tear. Every policy sets out exactly what is and is not covered, the limits on what it will pay, and the conditions you must meet — including how and when to report a claim. The single most useful thing you can do is read those terms *before* you need them. ## Step one: act quickly and safely The first priority after any incident is safety and any legal duty. If there has been an accident, make sure everyone is safe and exchange details where relevant. If something has been stolen or maliciously damaged, report it to the police and get a crime reference number — many policies require this. Then notify your insurer as soon as you reasonably can. Most policies expect prompt reporting, and some set strict time limits. Even if you do not yet have all the details, telling them early starts the process and protects you from a later argument that you delayed. You will usually find a claims line or online form on your policy documents or the insurer's website. > Report first, gather details second. A quick initial notification protects your claim even while you are still collecting evidence. ## Step two: gather evidence A claim is far smoother when you can show what happened and what it cost. Useful evidence includes: - **Photos and video** of any damage, the scene, or stolen items (older photos showing you owned something are gold). - **Receipts, invoices or valuations** proving ownership and value. - **Crime or incident reference numbers** from the police or other authorities. - **Names and contact details** of any other parties or witnesses. - **A written record** of dates, times and what happened while it is fresh in your mind. Keep originals where you can and send copies. The clearer your evidence, the less room there is for the insurer to question or reduce your claim. ## Step three: understand the excess Almost every claim involves an **excess** — the fixed amount you contribute towards each claim before the insurer pays the rest. If your buildings policy has a 350-pound excess and a repair costs 2,000 pounds, you pay 350 and the insurer covers 1,650. There are often two parts: a **compulsory excess** set by the insurer, and a **voluntary excess** you chose when buying the policy to lower your premium. They add together. A high voluntary excess saves money up front but costs you more at claim time, so it is worth knowing your total before you claim. The excess is also why small claims often are not worth making. If the damage costs roughly the same as your excess — or only a little more — you may pay most of it yourself anyway, while still risking a higher premium and a dented no-claims record. The same budgeting logic that helps you [build an emergency fund](/business-finance/how-to-build-an-emergency-fund) applies here: sometimes it is cheaper to cover a small loss from savings than to claim. ## Step four: the assessment and payout Once you have reported the claim and supplied evidence, the insurer assesses it. For larger or more complex claims — a major escape of water, a serious car accident, a substantial theft — they may appoint a **loss adjuster** to inspect the damage and verify the cost. For smaller claims, the process is often handled remotely. The insurer will then either: - **Arrange repair or replacement** directly, often through approved suppliers or garages, or - **Pay you a cash settlement** based on the assessed value, minus your excess and any deductions for betterment or wear. Settlement can take days for straightforward claims or much longer for disputed or complex ones. Stay responsive, keep copies of everything, and chase politely if you hear nothing. If you are out of pocket while you wait, note that on a home or motor policy you may have add-ons (like alternative accommodation or a courtesy car) that help in the meantime. ## What claiming can cost you long-term A payout is rarely free money. Beyond the excess, a claim can: - **Raise your premium at renewal**, because insurers price on risk and a claims history signals higher risk. - **Reduce or reset a [no-claims bonus](/business-finance/what-is-no-claims-bonus)**, which can sharply increase motor premiums for years. - **Need declaring on future applications**, as insurers commonly ask about claims in the last several years. This does not mean you should avoid claiming for genuine, significant losses — that is exactly what insurance is for. It means small claims deserve a quick cost-benefit check. The fact that you can claim does not always mean you should. The wider trade-off between cover and cost is part of [understanding car insurance](/business-finance/understanding-car-insurance) and home cover alike. ## If your claim is rejected or underpaid Insurers can decline claims for legitimate reasons — the event was not covered, a condition was not met, or information was inaccurate. But mistakes and unfair decisions happen too. If you disagree: 1. **Ask for the decision in writing** and the specific policy term relied on. 2. **Check it against your policy wording**, line by line. 3. **Make a formal complaint** to the insurer if you believe it is wrong. 4. **Escalate to the Financial Ombudsman Service** if the insurer does not resolve it within eight weeks, or you remain unhappy. The Ombudsman is free, independent and can make a decision that is binding on the firm. Citizens Advice can help you frame a complaint, and keeping good records throughout makes your case far stronger. ## The bottom line Making an insurance claim is mostly about speed, evidence and knowing your policy. Report the incident promptly, gather clear proof of what happened and what it cost, understand your excess, and weigh small claims against the long-term hit to your premium and no-claims discount. Co-operate with the assessment, keep copies of everything, and if you are treated unfairly, complain and then take it free to the Financial Ombudsman Service. Because this is general information rather than advice, lean on Citizens Advice or MoneyHelper for help with your specific situation — and read your policy before you ever need to use it. ## Frequently asked questions ### How long do I have to make a claim? Check your policy — many insurers expect you to report incidents promptly, sometimes within a set number of days. For events like theft or an accident you should also report to the police or relevant body quickly. Delaying can give the insurer grounds to reduce or refuse a claim, so the safest approach is to notify them as soon as you reasonably can, even if you are still gathering details. ### What is an insurance excess? An excess is the amount you agree to pay towards each claim before your insurer pays the rest. If your excess is 250 pounds and the repair costs 1,000 pounds, you pay 250 and the insurer pays 750. Some policies have a compulsory excess plus a voluntary one you chose to lower your premium. For very small losses, the excess can mean it is not worth claiming at all. ### Will making a claim increase my premium? It often can. Insurers treat a claims history as a sign of higher risk, so premiums may rise at renewal, and a claim can reduce or reset a no-claims discount. This is why it is sometimes cheaper to pay for a small repair yourself rather than claim. Always weigh the payout (after the excess) against the likely effect on future costs. ### What can I do if my claim is rejected? First ask the insurer to explain its decision in writing and check it against your policy wording. If you think the decision is unfair, make a formal complaint to the insurer. If they do not resolve it within eight weeks, or you remain unhappy, you can refer the complaint free of charge to the Financial Ombudsman Service, which can make a binding decision. This is general information, not legal advice. ## Sources - [Citizens Advice — Claiming on your insurance](https://www.citizensadvice.org.uk/consumer/insurance/insurance/if-you-have-a-problem-with-insurance/claiming-on-your-insurance-policy/) - [MoneyHelper — How to make an insurance claim](https://www.moneyhelper.org.uk/en/everyday-money/insurance) - [Financial Ombudsman Service](https://www.financial-ombudsman.org.uk/) --- Daily Junction — https://dailyjunction.org/business-finance/how-to-claim-on-insurance