What element of an insurance contract is likely to be affected by purchasing insurance direct from a UK insurer?

The premium payable is likely to be affected by purchasing insurance directly from a UK insurer because when consumers deal directly with an insurer, they may avoid certain fees or commissions typically included when using intermediaries, such as brokers. Direct purchases can sometimes lead to lower premiums since the insurer does not need to account for the additional costs associated with paying commissions to intermediaries. This means that the consumer might benefit from a more competitive premium, reflecting reduced overall expenses for the insurer.

Factors like Insurance Premium Tax, the complaints process, and protection in case of insurer failure may remain relatively consistent regardless of whether the insurance is purchased directly or through intermediaries. Insurance Premium Tax is a standard rate applied to insurance premiums, and the complaints process is usually standardized across providers. Similarly, the protections available to consumers in the event of insurer failure (such as coverage by the Financial Services Compensation Scheme) do not typically vary based on how the insurance is purchased.