Finance glossary
Material Fact
Also known as: Non-disclosure, Misrepresentation
In simple terms
A material fact is any information that could affect whether an insurer covers you or what it charges. Failing to give accurate answers can leave a claim unpaid.
On this page
What does material fact mean?
A material fact is information relevant to the risk you are asking an insurer to cover — such as previous claims, medical history, modifications to a car, or the use of a property. It could influence whether the insurer offers cover and at what price.
“Non-disclosure” or “misrepresentation” is failing to share such information accurately.
How disclosure works
For consumers, the Consumer Insurance (Disclosure and Representations) Act 2012 changed the rules: instead of having to guess what is “material”, you must take reasonable care to answer the insurer’s questions honestly and accurately.
If you do that, an insurer cannot refuse a claim just because you did not volunteer something it never asked about.
How could this affect me?
Careless or deliberate misrepresentation can lead to a claim being reduced or refused, or the policy cancelled. Honest mistakes are treated more leniently than deliberate ones under the 2012 Act.
Answer every question carefully and tell your insurer promptly if your circumstances change during the policy.
Things to watch out for
- Careless or deliberate misrepresentation can void a claim.
- Tell your insurer if your circumstances change mid-policy.
- Keep a record of the answers you gave when buying cover.
Know your rights
- Under the Consumer Insurance (Disclosure and Representations) Act 2012 you must take reasonable care not to misrepresent, but you only have to answer the questions the insurer actually asks.
- If a claim is unfairly refused you can complain and escalate to the Financial Ombudsman Service.
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.
- legislation.gov.uk, Consumer Insurance (Disclosure and Representations) Act 2012 (opens in a new tab). Accessed 22 Aug 2026.