Context
Based on its own insights of the complaints it has received, FOS has published an article aimed at students returning to university after Christmas suggesting ways in which they can avoid financial pitfalls. Two of those pitfalls are insurance related.
Key points to note and next actions
In relation to the issues raised below, insurance distributors could ensure that the information provided to students is sufficiently clear for them to understand the limitations of the insurances they buy:
- Insuring gadgets and tech: Standard home contents policies don’t always cover items like drones, e-scooters, or wearables like fitness watches. Students should check their cover and consider standalone gadget insurance where needed.
- Telematics (black box) car insurance: These policies may help young drivers save money and access insurance, but students should check the terms to understand how the data is collected, how driving behaviour is scored, and what could trigger cancellations or premium increases.
The ‘top tips’ that FOS thinks students should take note of, and therefore which insurance distributors should perhaps assist students’ understanding of, are:
- Always read the small print before signing up for financial products.
- Ask questions if you’re not sure – and seek help early if you get into difficulty.
- Be wary of offers that sound too good to be true.
- Protect your personal details and never share your account.
- Check insurance policies carefully so you know what’s covered and what’s not.