What insurance does a UK family actually need?
From legally required to nice-to-have: a plain-English guide to the insurance a typical UK family should consider, in priority order, and why each one matters.
On this page
There’s no single “right” set of policies — but there is a sensible way to think about it: protect the things that are legally required, then the losses that would genuinely hurt. Here’s the family picture.
A priority order to think in
| Priority | Cover | Why |
|---|---|---|
| Legally required | Car insurance | Required to drive or keep a car on the road |
| Usually required | Buildings insurance | Mortgage lenders almost always insist on it |
| Protect your income | Life insurance, income protection | If a partner, children or a mortgage depend on your earnings |
| Protect your things | Contents insurance | Your possessions against theft, fire, damage — renters too |
| Protect your health/plans | Critical illness, travel | Lump sum on serious illness; medical & cancellation abroad |
| Lifestyle | Pet, gadget, warranties | Worth it case by case; check you’re not doubling up |
The one question that cuts through it
Don’t pay twice
Families often over-insure without realising: breakdown cover already inside a packaged bank account, gadget cover already in home contents, extended warranties duplicating your consumer rights. Before buying, check what you already hold.
Explore each type
- Do you need life insurance?
- Income protection explained
- Critical illness cover explained
- Travel insurance: what it covers
- Contents insurance: do you need it?
In short
Start with what’s legally or contractually required (car; buildings for a mortgage), then protect the income your family depends on (life, income protection), then your possessions and health-related risks. Match cover to what you genuinely couldn’t absorb yourself — and check you’re not paying twice.
Frequently asked questions
Which insurance is legally required in the UK?
Car insurance is a legal requirement to drive or keep a car on the road. Buildings insurance isn’t a legal requirement, but mortgage lenders almost always require it as a condition of the loan. Most other cover is optional but can be important.
What insurance matters most for a family with children?
Protection for the income the family relies on — life insurance and income protection — tends to matter most where a partner or children depend on your earnings or a mortgage. What’s ‘essential’ varies by household.
How do I avoid being over-insured?
Don’t double up (breakdown cover bundled in a bank account, gadget cover already in home insurance), and match cover to real risk. Insurance is about protecting against losses you couldn’t comfortably absorb yourself.
Sources & last checked
- Types of insurance and do you need them — MoneyHelper (Money & Pensions Service)
- Choosing the right insurance — Association of British Insurers (ABI)
Last checked against official sources: 9 July 2026.