Insurance cover and mental health

Explains what challenges you might face when applying for insurance cover, what is meant by a pre-existing medical condition, and how you can find the right cover. Also explains what could happen if you need to make a claim.

How could my mental health problem affect my insurance?

Unfortunately, if you have a mental health problem you may find it harder to get an insurance policy. 

This page covers:

• What challenges might I face when applying for insurance?
• What's a pre-existing medical condition?
• How can I find the right insurance cover?
• What about if I need to make a claim on my insurance?

What challenges might I face when applying for insurance?

• It might be difficult to get the cover that you want. For example, many insurance providers don't cover pre-existing medical conditions. This can include mental health problems. They may also have restrictions about what they won't cover in terms of mental health.

• You could be assessed as a 'high risk' customer. This means the insurer thinks they're more likely to have to pay out money on a claim. So they could refuse cover or charge you a higher premium. The premium is the amount you pay to take out an insurance contract. This can happen even if you had a mental health problem in the past but have recovered.

• You may be charged more if you can't work because of your mental health. Insurers may only give you the option of selecting 'in work' or 'unemployed' in your application. And you may find your premium is higher if you say you're unemployed.

• The questions the insurer asks might be too broad. For example, they might only ask 'have you ever had a mental health problem?'. If you say yes, they may then refuse you cover or charge you a higher premium.

• The process of applying can be difficult. For example, if your mental health problem makes it hard for you to concentrate on small print or fill out forms.

• The application process may feel upsetting or intrusive. Sometimes you might be asked difficult or personal questions. The staff might not have mental health training.

• Some insurers may raise prices if you tell them that you take medication or have other treatments. This can be frustrating. It can feel like you’re being punished for managing your mental health problem. Or that the insurer has a poor understanding of mental health. See our information on your legal rights when dealing with insurers and types of disability discrimination.

• The insurer might not clearly explain their decision-making processes. For example, they might not properly explain why they refused cover or charged a high premium.

This can be extremely frustrating. But there are some steps you can take to make it easier.

Keep reading this page for tips on how to get the right cover.

Our page on your insurance rights explains how you can challenge discrimination.

I've had problems finding affordable car insurance as my condition means I can be off work for long periods of time. Having 'unemployed' as my occupation drives the premium right up.

What's a pre-existing medical condition?

A pre-existing medical condition is any condition you have at the time you apply for insurance.

Many insurance policies don't cover pre-existing conditions. This means that they won't pay out on a claim related to a pre-existing condition. Including mental health problems.

For example, if you already have a diagnosis of depression when you apply for insurance, this is a pre-existing condition. If you try to make a claim related to your depression, your insurer can dismiss your claim as invalid. They can refuse to pay out any money.

How can I find the right insurance cover?

Having a mental health problem can mean that you face certain challenges to getting insurance. But there are things you can do to make sure you get the right cover at a good price. You might find it helpful to:

• Shop around different insurers
• Check exactly what different policies cover
• Prepare before you apply
• Tell the insurer what you need
• Contact an advocate
• Get help with any money problems

Shop around different insurers

• Identify your specific insurance needs and look at what different providers offer. Compare which ones best meet these. You can search online to find insurers and contact them directly. Or have a look at the Association of British Insurers (ABI), British Insurance Brokers' Association (BIBA) and MoneyHelper websites. They all have lists of insurance providers.

• Use brokers or comparison sites to help you compare different options. MoneyHelper has more information on how to get the best out of brokers and comparison websites.

• Get quotes from different insurers, so you can compare prices and decide which works best for you. Some websites have online quote tools. So you might want to check how much your insurance would have cost without declaring a mental health problem. Then you'll get a more accurate understanding of any price differences.

• Look at insurers who cover people with pre-existing conditions, including mental health problems. See our page on specialist insurers for details on these.
• Choose an insurer that has a thorough approach to assessment. An insurer that asks you relevant and appropriate questions before making their decision is more likely to give you suitable cover at a reasonable price.

Usually a quick Google to find a travel insurance policy that covers my condition will easily find something suitable. And although it’s more expensive, it’s definitely better for peace of mind.

Check exactly what different policies cover

• Check if you’re already covered for basic insurance. Your work or bank may have a policy that provides some cover.
• Read the small print. Read your policy carefully, including the small print, and make sure you understand exactly what it covers.
• Check whether pre-existing medical conditions are covered, including mental health problems. Keep in mind that many policies don't include pre-existing medical conditions as standard.

If there is anything you don't understand or you need to find out more, contact the insurer.

I make sure to read the small print to see what’s covered and what isn’t. The most useful thing I’ve found is to contact the insurer directly, sometimes anonymously, to find the right information before I commit to a policy.

Prepare before you apply

• Have a doctor’s report ready before you apply. You could ask your doctor to give you a report that explains your condition in more detail. This might help your case when you apply for insurance or if you need to challenge an insurer’s decision. Reports can sometimes take a while to come through, so try to have this ready beforehand.
• Consider asking someone to support you. Looking for insurance can be difficult and confusing. Especially if you're not feeling well. If you can, ask someone you trust to support you. Like a friend, family member, carer or advocate. And if you’re feeling overwhelmed or exhausted, take a break and come back to it later.

Tell the insurer what you need

Staff at insurance companies may not have a good understanding of mental health, or experience in assessing mental health. This can feel challenging or frustrating. But remember that you deserve to be treated with respect.

Insurers should offer at least 2 ways of communicating. For example, you could ask to:

• Communicate by email if you find it hard to talk on the phone
• Talk to a different member of staff if you feel someone doesn't understand your situation

If your mental health problem meets the definition of a disability under the Equality Act 2010 and it makes applying for insurance more challenging, you may also be able to ask for reasonable adjustments. For example, you could ask to:

• Extend deadlines to give you more time to fill out forms
• Have someone else communicate with the insurer on your behalf, such as a partner, close friend or advocate

See our pages on disability discrimination and reasonable adjustments for more information on your rights when asking for what you need.

Contact an advocate

If you’re finding it difficult to get insurance because of your mental health problem, you may be able to get an advocate to help you. This could be a friend, family member or a professional advocate. An advocate can:

• Help you through the process of applying
• Make sure your views and worries are taken into account
• Help you if you want to make a complaint or take legal action

See our information on advocacy to find out more.

Get help with any money problems

Insurance can be expensive. And if you’re already struggling with money, trying to find affordable insurance can add to these worries. If your financial situation is making your mental health worse, see our pages on money and mental health for some ideas that could help.

The Mental Health and Money Advice website also has tips, advice and videos on coping with money problems, including information about finding the right insurance cover.

What about if I need to make a claim on my insurance?

Once you’ve taken out an insurance policy, you may find yourself in a position where you have to ‘make a claim’.

An insurance claim is when you ask your insurer to pay the cost of a loss or event that is covered in your policy.

Sometimes, insurers may reject insurance claims, or refuse to pay the full amount. There can be various reasons for this. It can be really worrying and frustrating to have a claim refused. Especially if you feel that the decision is unfair.

For more information on why your claim might be refused and what you can do next see the MoneyHelper and Citizens Advice websites. And our tips on what you can do if an insurer rejects your application or claim.

For help understanding your legal rights when making a claim, see our information on your rights when dealing with insurers.