UCAS guide
Firm vs insurance — what the financial difference actually is
Before the May reply deadline, see what each choice means monthly.
What firm and insurance mean
When you receive your UCAS offers, you reply by choosing one as your firm choice and one as your insurance choice. Your firm is the place you most want to go if you achieve the required grades. Your insurance is the fallback — the university you go to if your grades fall short of your firm offer.
The reply deadline is typically in mid-May each year — check UCAS Track for your exact date. Once you have replied, you cannot change your choices unless you go through clearing or adjustment. This makes the firm and insurance decision one of the most financially consequential choices of the whole UCAS process.
Almost all students choose firm and insurance based on academic preference. Very few check what each choice means for their monthly finances. The comparison tool above shows you both.
The grade risk calculation
Choosing firm and insurance is partly a bet on your results. If you are predicted AAB and your firm needs AAA, you are accepting a realistic chance of missing your firm offer. In that case, you go to your insurance. The question worth asking is: what does that cost you monthly?
Firm: UCL (London), requires A*AA. Insurance: University of Sheffield, requires AAB.
From a household earning under £25,000:
— If they meet UCL: −£373/month (loan does not cover London costs)
— If they miss and go to Sheffield: +£300/month (comfortable monthly balance)
The grade risk is worth £673/month if they miss their firm.
This does not mean you should not apply to UCL. It means you should know the number before you choose. If missing your firm offer and going to insurance leaves you significantly better off financially, the insurance option may actually be the more rational choice — not a consolation prize.
The comparison tool above runs this calculation for your specific combination. Enter your firm and insurance universities, set your household income, and the monthly difference appears immediately.
When insurance is worth paying more for
There are legitimate reasons your insurance might cost more per month than your firm. A course with an exceptional industry placement rate, a city with a strong graduate job market in your field, or a university with a specific programme you genuinely prefer — these can be worth a higher monthly cost.
The financial rule of thumb is that your insurance should cost the same or less per month than your firm. If it costs significantly more, reconsider which is firm and which is insurance. A miss on grades that sends you to a university costing £300/month more than your firm would have cost is a compounding problem.
Before the reply deadline, confirm:
- You know the monthly balance at your firm on your household income.
- You know the monthly balance at your insurance on your household income.
- If your insurance costs more, you have a specific reason for that choice.
- You would genuinely be happy to attend your insurance — not just tolerant of it.
Send this comparison to your parents before the reply deadline:
Or compare all your offers side by side: open the affordability calculator →