If you want to take out some kind of insurance policy, then it helps to understand what insurance policies are available. We take a look at the most common insurance types and how to get the best deal.
Buildings insurance will cover the cost of rebuilding your home if it was to ever experience fire damage or even flooding. It will also cover you for things such as subsidence too. You should note that if you leave your property unoccupied for 60 days or more then you will not be covered, and the insurance policy may even choose to withdraw your policy altogether. Of course, it's also important to know that it's a legal requirement for you to have this type of insurance for your home. Repairing your home can be super expensive and the mortgage provider who you are currently with wants to make sure that their investment is safe. If you rent your property, then you don't need to take out buildings insurance because it is actually your landlord's job to sort all of that out for you.
The best thing about contents insurance is that it will cover you for any loss or damage. It won't cover you for general wear and tear, and again, if your property is unoccupied for 60 days or more then you won't be covered for this either. This type of insurance is vital if you are concerned about your home being burgled or if you have a fire or a flood. Most of the time you'll be able to get a new item to replace your old one, or the one that has been damaged. You can even choose to get a level of cover if you lose an item outside your home too, and this is a fantastic way for you to make the most out of your policy in general. You should note that you'll probably have to pay an excess on every single claim that you make. If you do make a claim, then there is a high chance that your premium will increase the next year. As if that wasn't enough, some items are only insured up to a certain limit.
There are three different types of insurance policy for you to choose from. There's third-party, which will cover you and your passengers if you are ever involved in an accident. It also covers you for damage to other peoples, property too. It should be noted that if your car is damaged or if it is stolen then you will have to pay for it yourself. This is pretty much the most basic level of cover that you can get, but it is essential. Third-party fire and theft cover will pay out for any repairs or even replacements that you need like standard third-party does, but it will also cover you if your car is stolen or if it is set on fire. Comprehensive cover, on the other hand, will cover you for all of the above. It is the most expensive level of cover, but that being said, you won't have to worry about a thing when you have this level of cover for your car. Having third-party cover is essential and it is against the law if you don't. The main reason for this is because personal injury claims can cost millions, and you need to be able to pay it if you're ever at fault. It should also be noted that insurance for younger drivers is often expensive, so if you have just passed your test then you should expect to pay a higher price. If you need to claim, then there will usually be a gap between what the insurer will pay out and the cost of replacing your car in general.
Another type of insurance that you can take out is GAP insurance. This will cover you if your car is ever written-off and it will also cover what you paid for the car too. If you owe something on your car then you will be covered for this, or even what it would cost to replace the car itself. You should note that this will only pay out if your car is a total write-off, or if it is unrecoverable. A good rule of thumb is for you to only take out this policy if you owe the dealership more money than your car is worth. You don't need this type of cover if you feel as though the cover that you have right now is enough, or if you have an agreed value statement on your current policy. If you have a finance agreement that covers you for the difference between the book price and how much you paid then this should also be an indicator that you don't need a GAP cover.
Travel insurance is ideal if you go away a lot, or if you have an upcoming vacation happening sometime soon. Most travel insurance policies will cover you for medical expenses and it will also cover you if you are personally liable for any reason. If your bags are lost or stolen then it will pay out for that, and it will also make sure that you're not out of pocket if your flight is cancelled or if your trip is cut short for any reason at all. You need to be taking out travel insurance if you are not able to pay for medical care abroad. A lot of policies will cover you for up to £1 million of cover. If you play adventure sports, winter sports or even dangerous activities then you will need to take out an additional level of cover. If you want to take out cover for your possessions, then this won't usually be worth the money.
Life Insurance and Income Protection
Life insurance or income protection will pay your dependents a large sum or even regular payments if something was to happen to you. If your children or your partner depends on your income to pay the mortgage, then you should certainly think about taking this out. First, it helps to check to see if you have an employee package that gives you death in service. If it does, then there's a high chance that you might not need this cover. If you're young and healthy then this can also indicate that you don't need it right now. Some policies will only ever cover you in death too, so if you can't work due to illness then you won't get a payout for that. Lastly, it won't payout if you die from an existing medical condition unless this is otherwise stated in the policy that you have.
How to Get the Best Deal
You need to be careful when you shop around, as you need to make sure that you are comparing cover that is like-for-like. Some policies may seem cheaper on the surface but when you take them out you may find that you are not actually getting the same level of cover. If you want to get the best result here, then you need to make sure that you use a comparison site. When you do, you will be able to put in your details and the site will find the best deals for you. You can easily alter the excess at any time, and this will bring up a host of new quotes for you.
Don't Put Everyone on your Policy
Another thing that you need to do is make sure that you are only putting regular drivers on your policy. If you add tons of people, this will really increase the price and it will also make it much more difficult for you to get a great deal.
If you're able to have a long no-claims bonus, then you'll soon find that this is one of the best ways for you to cut down on the cost of your insurance. Sure, this may increase the amount that you pay if you were to ever get in an accident, but that being said it can also be a great way for you to save every month.
Agreeing to pay more towards your excess will really bring down the cost of your insurance. If you are ever in an accident then you will need to cover this, however, so make sure that you can afford to pay whatever number you write down. If you need to get some help here, then make sure that your car is actually worth whatever you put down.
Secure your Car
Believe it or not, fitting an alarm that has been approved or even a tracking device can give you a huge discount on your car insurance. A lot of new cars will come with features like this as standard, so it helps to check to see if you have them already so that you can declare them.