This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Learn how to get a refund for mis‑sold insurance in England and Wales. This guide covers your rights, when a refund may be possible, how to complain to your insurer or the Financial Ombudsman Service, key time limits and practical steps to pursue redress.
Many consumers in England and Wales buy insurance in the belief it meets their needs and has been fairly sold to them. Problems arise when a policy turns out to be inappropriate, misleadingly explained or poorly suited to your circumstances - in other words, mis‑sold insurance. This raises the question of whether you can obtain a refund or other redress.
This article explains when a refund may be possible, your rights under UK consumer and financial services law, how complaints and claims work, relevant time limits, and practical steps you could consider.
What Is Mis‑Sold Insurance?
Insurance is generally mis‑sold when:
- key features, terms or exclusions were not properly explained;
- the policy was recommended to you despite being unsuitable for your needs;
- you were given misleading or incomplete information before purchase.
Mis‑selling is treated as unfair conduct by insurers or intermediaries under standards enforced by the Financial Conduct Authority (FCA), which requires products and services to be sold in a way that is fair, clear and not misleading.
Mis‑sold insurance can take many forms, from travel insurance sold without clear details of exclusions, to Payment Protection Insurance (PPI) historically added without proper explanation.
Can You Get a Refund for Mis‑Sold Insurance?
Refunds Through the Insurer or Provider
In the first instance, you should complain to the insurer or provider that sold the policy. If the insurer agrees that the policy was mis‑sold, the most common remedy is to refund the premiums you paid, adjusted for any benefits you may already have received. This approach is typical where a policy was sold on unsuitable terms or key information was withheld.
Policies often have cancellation rights or “cooling‑off” periods when first taken out, which allow refunding premiums if you cancel within a short window after purchase - usually 14 days for many insurance contracts. However, where mis‑selling occurs outside this initial period, a different legal basis for a refund is necessary.
Importantly, a refund is not guaranteed simply because a claim is denied. If a claim is rejected for reasons wholly unrelated to how the policy was sold (for example, an excluded event), that rejection alone doesn't automatically entitle you to a refund for mis‑selling.
Complaints to the Financial Ombudsman Service
If the insurer refuses your refund or offers an inadequate settlement, you can escalate the matter to the Financial Ombudsman Service (FOS) after the provider's internal complaints process. The FOS handles disputes between consumers and financial services firms, including complaints about mis‑sold insurance.
The Ombudsman's role is independent and free to consumers. It will assess whether the policy was mis‑sold and, if so, direct the insurer to “put you back in the position you would now be in if the mis‑selling had not happened”. Remedies can include:
- refunding premiums paid,
- adjusting or cancelling the policy,
- paying compensation for loss, inconvenience or distress where appropriate.
For example, where historic PPI was mis‑sold, ombudsman redress typically involves cancelling the policy and compensating for the extra costs incurred because of it.
Examples of Mis‑Sold Insurance Where Refunds May Apply
Payment Protection Insurance (PPI)
PPI was widely mis‑sold by banks and lenders when it was added to credit agreements without clear explanation or suitability checks. Although the FCA set a deadline for complaints about mis‑sold PPI in August 2019, there are situations where you may still pursue redress through the courts (for example, Plevin claims relating to undisclosed commission).
Where mis‑sold PPI complaints are upheld by the FOS or in court, the insurer is normally directed to refund the irrelevant premiums and associated costs.
Travel Insurance
Consumers sometimes complain to the FOS that travel insurance was mis‑sold because key exclusions or conditions were not explained. While a denied claim does not by itself prove mis‑selling, the Ombudsman may investigate whether the original sale process was fair and transparent.
Time Limits and Practical Considerations
Time Limits to Complain
There are strict time limits for complaints and claims:
- In general, you should raise a complaint with the insurer within six years of the act or omission you are complaining about, or within three years of when you became aware of the issue, whichever is later.
- For financial products like PPI, statutory deadlines set by the regulator can also apply, though court‑based claims (e.g. Plevin) may still be possible beyond those deadlines.
Act promptly as soon as you identify mis‑selling, and preserve all relevant documents and communications to support your complaint.
Evidence You'll Need
Strong evidence improves the prospects of a successful refund or compensation order:
- policy documents and statements,
- marketing materials or advertisements,
- written correspondence with the insurer,
- notes of telephone conversations,
- reasons for claim denials if relevant.
Always ask for copies of your file or sales notes from the provider if needed.
What Happens After a Complaint Is Upheld?
If the Ombudsman or insurer accepts your complaint:
- the insurer will normally refund the premiums you paid for the mis‑sold policy,
- make adjustments reflecting what you would have paid for a suitable policy,
- and pay compensation for any additional financial loss or distress caused by the mis‑selling.
Redress is tailored to your circumstances, and the Ombudsman may decide that other remedies are fairer in certain cases.
If a complaint is partially upheld, the insurer may offer a pro‑rata refund of premiums for the unused period of the policy, or retain amounts already expended where benefits were legitimately received.
Common Questions About Refunds for Mis‑Sold Insurance
Do I automatically get a refund if a claim is rejected?
No. A claim rejection by itself does not prove mis‑selling. Refunds arise only if the policy was unfairly sold, misrepresented, or unsuitable for your circumstances. The Ombudsman looks at the sale process, not just claim outcomes.
Should I use a claims management company?
You may choose to instruct a claims management company, but you are entitled to make complaints yourself without third‑party involvement. There is no requirement to pay fees to submit a complaint to a provider or the FOS.
Can I claim if the policy is old?
Claims may be possible even for older policies, provided deadlines have not expired and exceptions apply (for example, timely awareness of mis‑selling). Court‑based claims such as Plevin actions may offer additional avenues where regulatory complaint periods have passed.
Key Takeaways
You can sometimes obtain a refund for mis‑sold insurance in England and Wales, but it depends on whether the policy was unfairly or misleadingly sold. Start by raising a complaint with the insurer. If that does not resolve the issue, take your complaint to the Financial Ombudsman Service, which can order refunds, cancellation of policies and compensation. Always preserve evidence of the sale process, understand relevant time limits and, where necessary, seek clarity on complex or historic cases such as PPI or commission‑related claims.
