Insurance is a financial product that provides a form of security. You pay money each week/month/year to an insurance company to ‘insure’ a product – such as your car, or house, or phone, and if something bad happens then you can make a ‘claim’ and the insurance company pay you money for the item. This is a very basic explanation.

When you set up insurance for something, you will get a ‘policy’ which will set out the conditions of your insurance. The company will explain under what circumstances you can or cannot make a claim, and how much they will pay out to you.

The cost of insurance varies greatly depending on your circumstances – the company will collect a lot of information about you before they offer you a price. The cost of insurance is often different between companies too.

Because of all of the differences with insurance, we would strongly recommend comparing policies – either using a comparison site or asking the company to give you a ‘quote’.