Consumers (UK)
Under the Consumer Insurance (Disclosure and Representations) Act 2012, consumers must take reasonable care not to make a misrepresentation when answering an insurer’s questions. The insurer’s remedy depends on the type of mistake: if a misrepresentation was deliberate or reckless, the insurer can generally avoid the policy and refuse claims; if it was careless, the remedy is proportionate to what the insurer would have done had it known (for example, charging more, so paying claims proportionately). Honest and reasonable mistakes shouldn’t lead to a remedy.
Businesses (UK)
The Insurance Act 2015 gives businesses a duty of fair presentation: disclose every material circumstance you know or ought to know, in a reasonably clear and accessible way. Again, remedies are proportionate unless a breach was deliberate or reckless.
Elsewhere
US states have their own rules on material misrepresentation, often allowing rescission where a misstatement was material to the risk. EU countries set their own national rules. The safe approach everywhere is the same.
How to protect yourself
- Read every question; don’t accept pre-filled answers on comparison sites without checking.
- Keep copies of the statement of fact or proposal.
- Tell your insurer about changes during the policy, such as building work, new drivers or new business activities.
- If unsure, ask, and note the answer.
Last updated: 6 October 2026
