Insurance Guide | Travel Insurance | Home Insurance | Car Insurance

Insurance is a form of risk management. Insurance companies agree to accept a transfer of risk in return for a specified amount of money which is called a premium. Insurance is a way of protecting yourself and your belongings against loss or accident. If you have insurance and the unexpected happens, you will be compensated for the loss you incurred. We cannot predict the future but with an insurance policy you have the peace of mind that should something happen you are financially covered. In the UK some forms of insurance are required by law such as vehicle insurance, while others including travel, health, business and life insurance are optional.

You get insurance by taking out an insurance policy. The way policies work is that if something were to happen and you need compensation, you make a claim on your insurance policy. The main priority when looking for insurance is to find quality policies on a budget. However, you can request higher levels of cover for more peace of mind but you will pay more. Bear in mind that the cheapest policy is not necessarily the best because it won’t cover all your needs.

Remember that exact policies vary. The right level of cover will depend on your personal situation and individual needs. The first thing to do is to work out exactly what you want from your insurance and the key aspects you want from your policy. With all insurance policies make sure you know what is and isn’t covered and how much it will cost. Some elements you may feel will not be worth having or you feel you could do without and deciding on this will help you keep your premiums down by preventing unnecessary purchases. You should also think about how you want to pay for your policy. You may be given the option to pay it off in a lump sum or in instalments spread over the year but you should be prepared to pay an additional charge for this.

Getting insurance for anything can be a complex procedure and you should always ensure that you are 100% aware of what the policy is covering you for. Always check every detail before you sign so you can be sure you are making the best decision for you. You should watch out for hidden fees which can include administration charges, charges for changing your information, cancellation fees, late fees and a charge for any requests for duplicate documents. It is worth noting that some companies offer a no obligation period which gives you the chance to read through the policy and change your mind within a set amount of time.

It is really important that you shop around and find the cover that best suits you. Look for insurance with a choice of extras so you only pay for what you need and essentially tailor a policy to suit you. Key points to compare when shopping around for insurance include how suitable it is for your needs, the cost of the policy, how flexible the insurers are and what the terms of the policy are. The internet has become an excellent resource for shopping for and purchasing insurance. You can make big savings by comparing insurers and policies online through comparison websites such as Which Way To Pay. On this site you can get a complete picture of all the features and benefits of each product and easily determine which one is right for you. Make use of the features and guides on insurance websites particularly as some companies offer discounts for applying online. Some insurers will also offer great discounts if you purchase more than one policy from them.

In the UK it is compulsory to have insurance for your vehicle before you can drive on the roads. You are breaking the law if you drive on a vehicle on a public road and you are not insured. Insurance protects you, other motorists and your vehicle against any liability in the event of any accident. Third party cover is the legal requirement of cover that you must have. Third party insurance covers injury to other people or damage to other people’s vehicles and property. Most insurers also offer additional levels of cover that extend beyond your legal requirements. Third party fire and theft cover provides the same cover as third party only cover but also insurers you if your vehicle is damaged by fire or stolen. Comprehensive cover also provides the same cover as third party cover but also covers you if your vehicle is damaged in an accident.

With any vehicle insurance you should take out a policy that suits your situation. For example if you are a young driver there are policies which can especially cater for you. You can also get over 50s insurance, insurance for women, classic car insurance and you can even get insurance if you don’t drive often. Insurers will see low mileage drivers as less of risk because you are not on the road as often so you are less likely to have an accident which means you are likely to pay a lower premium.

Different types of insurance and insurance policies will cover some of the aspects listed below:

-          Repair/replacement of the vehicle if it is damaged or stolen.

-          Injury to you and others

-          Vandalism

-          Legal expenses and personal liability

-          Windscreen/window repair

-          Your valuables and personal belongings

-          Vehicle breakdown

The premium you will pay is decided by the insurer you pick and by a number of other aspects that can be determined by:

-          The type of vehicle – whether it is a car, motorbike, caravan or a specialist vehicle

-          Characteristics of the vehicle – including the age and particularly what safety features it has such as airbags and alarms

-          The level of cover you choose

-          The length of the policy

-          The driver – including your age and gender

If you do not make a claim during the term of your policy, you will qualify for a discounted premium. As an additional feature of a motor vehicle insurance policy you can be given the option to protect yourself from losing your no claims discount but this might not protect your premium. Remember this is an additional expense which may seem costly but if you have to make a claim you will risk losing the no claims discount and in certain cases some customers have seen their premium rise dramatically as a result of losing it. Paying the extra to protect this discount is an attractive option for many because you accumulate more discounts over the years by not making a claim. However, on the other hand, if you take out this protection and you do not make claims for many years, you could find that paying the extra has not been worth it.

Being a UK citizen you are fortunate enough to be able to have access to free medical care through the NHS. While this can be an excellent service you will find that investing in health insurance can be invaluable particularly as the population is getting bigger and living longer, putting increasing pressure on the NHS. Health Insurance is used to pay for private medical care. Some may feel that private health insurance is an unnecessary purchase when the NHS provides healthcare free of charge. However, being in good health should never be taken for granted and health insurance can help you get on the road to recovery faster than via the NHS. Health insurance can be expensive but there are affordable policies on the market. Health insurance ultimately gives you peace of mind so that if the worst happens, you can be treated quickly and ensure that you are well looked after.

-          Quicker treatment – unlike the NHS you will not have to wait as long for private treatment.

-          Avoid public hospital waiting lists

-          More control over the treatment and care you are given – for example you can decide where and when you are treated

-          Private rooms – you may also have an en-suite bathroom

-          Personal care – you are likely to be seen by the same consultants and doctors throughout your treatment

-          An overall better healthcare experience

If you have anyone who is financially dependent on you then you really should consider taking out a life insurance policy so you can be sure that when you are no longer around your family and loved ones are financially secure. In short, if your death is going to impact someone financially then life insurance is necessary. Life insurance can be used to ensure that your affairs are in order. If you are not covered then you place any dependents at risk which is the last thing they will need. When you die, generally speaking, a lump sum will be paid out to who you choose.

You should choose an insurer that is well priced and offers you flexibility. Most policies cover death by practically any cause. Make sure you choose the right level of cover because too much insurance may not be worth the cost and too little could not be sufficient for your family. You can also get some specialist policies for example if you are over a certain age, or have a critical illness.

How much a life insurance policy costs will depend on a number of factors. Firstly it will depend on the insurance sum and the insurance term. It will also depend on your age. In general the younger and healthier you are, the lower your premium is likely to be because you are less likely to die in the near future. You medical history will also play an important factor for example whether or not you have a critical illness. Also please note that if you are a smoker then your premium is likely to be higher.

Life insurance could provide a range of benefits in the event that something happens to you. You can use it for:

-          Funeral costs

-          Protecting assets

-          Providing a regular income for your family –financing your family’s general living costs and maintaining their lifestyle

-          For your children’s school or university fees

-          Settle any debts or unpaid bills you may have including mortgages so you don’t leave this burden for your family