Finance glossary
Claim
Also known as: Insurance claim
In simple terms
A claim is when you ask your insurer to pay out under your policy because something covered has happened — like an accident, theft, damage or illness — so they put things right or reimburse you.
On this page
What does claim mean?
A claim is the formal request you make to your insurer for the money or service your policy promises after an insured event. It is the moment the cover you have been paying for is meant to deliver.
What you can claim for, and how much, is set by your policy — the cover, the limits, the excess and any exclusions all shape the outcome.
How a claim works
You report the event to your insurer, usually as soon as possible, with evidence such as photos, receipts, a crime reference number or a medical report. The insurer assesses whether it is covered and how much to pay.
If accepted, the insurer settles — by repairing, replacing, or paying you — after deducting your excess. Making a claim can affect your no claims discount and your future premiums.
How could this affect me?
A claim is why you insure in the first place, but it is not free: you pay your excess, you may lose some no claims discount, and your renewal premium may rise. For very small losses it can be worth paying yourself.
Report promptly and honestly, and keep records. Insurers must handle claims fairly and promptly — if they delay unreasonably or reject a valid claim, you have routes to challenge it.
Things to watch out for
- Making a claim usually affects your no claims discount and future premiums.
- You still pay your excess, so tiny claims may not be worth it.
- Report promptly — late notification can give the insurer grounds to reduce or refuse a claim.
- Exaggerating a claim is fraud and can void the whole policy.
Know your rights
- Under FCA rules, insurers must handle claims promptly and fairly and must not unreasonably reject a valid claim.
- Under the Consumer Insurance (Disclosure and Representations) Act 2012, an insurer cannot refuse a claim over an innocent mistake in your answers — only proportionate remedies apply.
- If a claim is delayed, underpaid or wrongly rejected, you can complain and escalate to the Financial Ombudsman Service, free of charge.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- FCA, ICOBS 8 — claims handling (opens in a new tab). Accessed 22 Aug 2026.
- MoneyHelper, How to make an insurance claim (opens in a new tab). Accessed 22 Aug 2026.