diff --git a/src/openhuman/channels/providers/web_errors.rs b/src/openhuman/channels/providers/web_errors.rs
index dc5cdc2ca..58f89819b 100644
--- a/src/openhuman/channels/providers/web_errors.rs
+++ b/src/openhuman/channels/providers/web_errors.rs
@@ -17,13 +17,33 @@ pub(crate) fn is_inference_budget_exceeded_error(message: &str) -> bool {
     let normalized = BUDGET_ERROR_NORMALIZE_RE
         .replace_all(&message.trim().to_ascii_lowercase(), " ")
         .into_owned();
-    BUDGET_ERROR_PATTERNS
+    if BUDGET_ERROR_PATTERNS
         .iter()
         .any(|pattern| pattern.is_match(&normalized))
+    {
+        return true;
+    }
+    // Align with the canonical OpenHuman-backend budget detector
+    // (`billing_error::is_budget_exhausted_message`) so the managed
+    // no-credits response — a 400 carrying "Insufficient budget" /
+    // "Insufficient balance" — surfaces the actionable budget message
+    // below instead of the generic "Something went wrong" apology
+    // (issue #3088). Without this, an Ollama user with zero credits and
+    // routing still on Managed sees an opaque "provider error" and has no
+    // way to self-diagnose that they must top up or switch routing.
+    crate::openhuman::inference::provider::is_budget_exhausted_message(message)
 }
 
 pub(crate) fn inference_budget_exceeded_user_message() -> &'static str {
-    "I don't have any budget available right now. Please top up your credits or choose a plan to continue."
+    // Keep the literal "top up" / "credits" tokens (asserted by
+    // `budget_exceeded_copy_mentions_top_up`) and add the self-diagnosis
+    // path for issue #3088: a user who enabled a local model but left
+    // routing on Managed needs to know they can switch to their own model
+    // rather than being stuck. We guide, never auto-switch — the user's
+    // routing choice in Settings is respected.
+    "You're out of credits, so I can't run the managed (cloud) model right now. \
+     You can top up your credits or pick a plan to continue — or, if you've enabled a \
+     local model like Ollama, switch routing to \"Use Your Own Models\" in Settings → AI Configuration."
 }
 
 pub(crate) fn generic_inference_error_user_message() -> &'static str {
@@ -379,6 +399,12 @@ pub(crate) fn classify_inference_error(err: &str) -> ClassifiedError {
     } else if lower.contains("402")
         || lower.contains("payment required")
         || lower.contains("insufficient balance")
+        // Issue #3088: the OpenHuman managed backend reports no-credits as a
+        // 400 with "Insufficient budget" (not a 402), which previously fell
+        // through to the generic "Something went wrong" branch. Catch the
+        // canonical budget phrases here so the user gets the actionable
+        // top-up / switch-to-your-own-model guidance instead.
+        || is_inference_budget_exceeded_error(err)
     {
         // `openhuman_billing` means OpenHuman's own credit/quota system —
         // a 402 carrying the "openhuman" envelope (or no envelope at all,
@@ -392,7 +418,7 @@ pub(crate) fn classify_inference_error(err: &str) -> ClassifiedError {
         };
         ClassifiedError {
             error_type: "budget_exhausted",
-            message: with_provider_detail("Insufficient credits. Please top up to continue.", err),
+            message: with_provider_detail(inference_budget_exceeded_user_message(), err),
             source,
             retryable: false,
             retry_after_ms: None,
diff --git a/src/openhuman/channels/providers/web_tests.rs b/src/openhuman/channels/providers/web_tests.rs
index e2d206528..2f2b1cfd9 100644
--- a/src/openhuman/channels/providers/web_tests.rs
+++ b/src/openhuman/channels/providers/web_tests.rs
@@ -134,6 +134,16 @@ fn detects_backend_budget_exhaustion_error() {
     assert!(is_inference_budget_exceeded_error(
         "provider error: budget exceeded, please add credits"
     ));
+    // Issue #3088: the OpenHuman managed backend reports no-credits as a
+    // 400 carrying these canonical phrases (see `billing_error.rs`). They
+    // were previously NOT recognised here, so the error fell through to the
+    // generic "Something went wrong" branch. They must now match.
+    assert!(is_inference_budget_exceeded_error(
+        "openhuman API error (400 Bad Request): Insufficient budget"
+    ));
+    assert!(is_inference_budget_exceeded_error(
+        "openhuman API error (400 Bad Request): Insufficient balance"
+    ));
     assert!(!is_inference_budget_exceeded_error(
         "OpenHuman API error (500): Internal server error"
     ));
@@ -144,6 +154,36 @@ fn budget_exceeded_copy_mentions_top_up() {
     let message = inference_budget_exceeded_user_message();
     assert!(message.contains("top up"));
     assert!(message.contains("credits"));
+    // Issue #3088: the copy must guide the user to the self-service fix —
+    // switching routing to their own local model — so an Ollama user with
+    // no credits can self-diagnose. We guide, never auto-switch.
+    assert!(message.contains("Use Your Own Models"));
+    assert!(message.contains("Settings"));
+}
+
+#[test]
+fn classify_inference_error_managed_insufficient_budget_400_is_budget_exhausted() {
+    // Issue #3088: a managed (OpenHuman backend) no-credits failure arrives
+    // as a 400 with "Insufficient budget" — NOT a 402. It previously fell
+    // through to the generic `inference` branch ("Something went wrong"),
+    // leaving the user unable to self-diagnose. It must now classify as
+    // budget_exhausted with actionable, non-retryable copy.
+    let raw = "openhuman API error (400 Bad Request): Insufficient budget";
+    let classified = classify_inference_error(raw);
+    assert_eq!(classified.error_type, "budget_exhausted");
+    assert_eq!(
+        classified.source, "openhuman_billing",
+        "the OpenHuman backend's own credit system is the origin"
+    );
+    assert!(
+        !classified.retryable,
+        "out of credits — retrying the same prompt won't help"
+    );
+    assert!(
+        classified.message.contains("Use Your Own Models"),
+        "must guide the user to switch routing: {}",
+        classified.message
+    );
 }
 
 #[test]
diff --git a/tests/channels_provider_leftovers_raw_coverage_e2e.rs b/tests/channels_provider_leftovers_raw_coverage_e2e.rs
index 84b300832..496b8455a 100644
--- a/tests/channels_provider_leftovers_raw_coverage_e2e.rs
+++ b/tests/channels_provider_leftovers_raw_coverage_e2e.rs
@@ -318,11 +318,14 @@ async fn web_round19_covers_classifier_variants_and_cancel_cleanup() {
     assert_eq!(auth.source, "config");
     assert!(!auth.retryable);
 
+    // Issue #3088: budget-signal strings now classify as `budget_exhausted`
+    // instead of falling through to the generic `inference` branch — the
+    // user gets an actionable "top up or switch routing" message.
     let budget = web_test_support::classify_error_for_test(
         "inference budget exceeded: monthly limit reached",
     );
-    assert_eq!(budget.error_type, "inference");
-    assert_eq!(budget.source, "provider");
+    assert_eq!(budget.error_type, "budget_exhausted");
+    assert_eq!(budget.source, "openhuman_billing");
 
     let network = web_test_support::classify_error_for_test(
         "request error: dns error while trying to connect",