New guidance for selling personal lines add-ons

One of the key aims of the Financial Conduct Authority (FCA) is to promote competition in the best interest of customers. That’s why they have recently introduced new rules and guidance for selling add-ons, which are important for you to know.

What’s an add-on?

The FCA has defined an add-on as policies sold in connection with, or alongside, a primary product.

When it comes to our personal lines products our definition of add-ons are;


  • Legal Expenses
  • Home Emergency
  • Small Craft
  • Caravan
  • Personal Accident


  • Legal
  • Courtesy Car
  • Breakdown
  • European Breakdown
  • Packages (Family, Executive or Prestige)


  • None


What is an optional extra?
The FCA has defined optional extras as cover options, or extensions of cover within a policy when they are not separate policies. 
When it comes to our personal lines products some examples of our definition of optional extras are;


  • Accidental Damage
  • Personal Belongings
  • Pedal Cycle


  • Protected No Claim Discount
  • Foreign Use


  • Baggage
  • Travel Disruption
  • Winter Sports

What are the changes to add-on price disclosure?
Price disclosure for all add-ons, including optional extras, can help customers make better-informed decisions. We will, where possible, ensure customers are given price information to help them make a decision about whether or not to purchase add-ons or optional extras. We’re working to display the price for add-ons in our documentation before the end of September 2016. After that, we will be implementing changes at suitable opportunities to display the price for optional extras, where they don’t exist today.


We’ll keep you in the loop with any further updates. For more information on this, please have a look at our guide today.


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