Optional extras are insurance policies sold to a customer in addition to their main policy.

They are often separate contracts of insurance with a different insurance provider to the main policy.

Optional extras are often included with:

• home insurance – for example legal expenses cover
• car insurance – for example breakdown recovery

When you sell these to customers you need to do so in a way that is clear, fair and not misleading.

The customer needs to have enough information to be able to make an informed decision on whether to buy the additional insurance.

If you sell these to your customers you need to make sure you:

• Give them clear and not misleading information about the optional extra to enable them to make an informed decision without overloading the customer with extra documentation.
• Make clear that the optional extra is optional.  
• Make clear the price/premium of the optional extra, separating it from the price of the main insurance policy.
• If you are giving advice explain you will need to assess the customer's suitability for the optional extra and explain how it will meet the customer's demands and needs

Example of price information that is unclear about optional extras

"Motor legal assistance membership scheme is included in your renewal premium". 
This does not make it clear to the customer that the "renewal premium" includes an additional amount of premium to cover this membership scheme.

"The premium shown also includes £22.05 for legal protection cover." 
This does not indicate clearly to the customer that the additional extra is optional.

More information

What you need to tell your customers