Insurance Explained

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Home insurance

This product covers your home and contents against a flood, fire, flood or break-in for example, or if your pipes burst. Your home insurance policy has to include those just covering the contents of your home, those just covering the actual building you live in, or joint policies, covering both.

Motor insurance

Finding the right policy and the cheapest car insurance cover can be a tricky process; drivers use the Internet, by telephone, read magazines, watch TV advertisement to get information on savings and offers on car insurance.

Owning and driving a car means taking on many risks to yourself and others. When a traffic accident happens, damage, injuries, loss or all of these factors may be inflicted upon you and others. Damage and loss of your property may also occur. Fire, theft, vandalism and natural disasters are other possible risks.

Car Insurance protects motorists and drivers against liability in the event of accidents they may cause. It can also provide cover for the motorist’s own vehicle.

Many different types of cover are available, ranging from third party cover which protects individuals against liability should they injure a third party or cause damage to a third party’s property, but does not provide any cover for the individual’s own vehicle or property, through to comprehensive cover, which can offer protection for accidental damage, theft, fire damage as well as liability towards third parties. The minimum legal requirement for car insurance to drive in the UK is Third Party Only.

Here are 5 steps to follow to find the cheapest motor insurance deal:

STEP ONE: EXCESS

Voluntary excess the easiest way to cut your insurance premiums is to accept a higher voluntary excess. An insurer’s standard excess may be 100; but if you meet the first 250 of any claim, you’ll see a reduction in your premium. This is simply because you are more of the risk so you get a discount by your insurance company. This however is a gamble, insurer should be aware that they may have to meet the cost of a broken window after an attempted theft, then a bill for repairing bodywork damage after a car park crunch.

STEP TWO: SECURITY

One way to get cheaper insurance premiums is to fit a security device. Many insurers advise insurer’s to use Thatcham rated security equipment, usually minimum of an alarm. If you are living in a high-risk which may be known for car crime it would be useful to fit an extra security such as steering lock. This will save you money when your insurance renewal is due and gives you extra peace of mind.

STEP THREE: NAMED DRIVERS

Adding a named driver to your policy can increase or reduce your premiums depending upon the named drivers age, sex and driving record. When adding a young driver will increase your premiums, particularly with a limited or poor driving record. However, adding a driver over 30 years old with a long and clean driving record can cut premiums, particularly if the named driver is a female.

STEP FOUR: ANNUAL MILEAGE

If your annual mileage is, 5,000 miles or less, ask insurers if they offer discounts for agreed mileage restrictions, as some insurance companies do give discounts for restricted mileage. However many insurers won’t offer this option as standard but will agree a discount if you ask.

STEP 5 – SHOP AROUND FOR GOOD RATES

The biggest potential savings come from shopping around. This has been made much easier with the explosion of the internet. There can be massive differences between the lowest and highest car insurance quotes for exactly the same car and driver(s).

Health insurance

This type of insurance include policies which pay for your private medical treatment, if you don’t want to rely on the National Health Service, to those giving specific cover for dentists and optician bills.

Travel insurance

Insurance to protect you and your loved ones while on holiday and in case of holiday cancellations. This is available as Annual trip and also single trip cover. The cheapest travel insurance to find depends on which company your purchase from.

Life insurance

This cover, is to ensure your loved ones are financially provided for, if the worst should happen to you.

Income protection insurance

Insurance to help replace some of your earnings if you can’t work because you become ill or are made redundant.

Pet insurance

Vet’s bills can be expensive at times. This type of insurance covers you for unexpected vet’s bills and more.

Purchase insurance

Provides cover on goods you buy.

Different ways to buy insurance

If you want to buy direct

There’s lots of different ways to buy insurance:

Buy on the phone

Buy on the internet – it’s really easy to compare quotes from different companies online before you buy. Many give a discount if you apply online

Buy from an insurance broker. You’ll find local brokers in your phone book

Buy from your local bank or building society, or in the case of travel insurance, from your travel agent – but remember you may not get the best deal

Buy from a specialist insurer – for some types of insurance, like medical insurance, insurance for boilers/cookers, there are specialist companies just providing this type of insurance.

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Nagaraju Tadakaluri
Nagaraju Tadakaluri is a Professional Web Designer, Freelance Writer, Search Engine Optimizer (SEO), Online Marketer, Multi Level Marketer (MLM) and Business Promoter. Have developed Latest Updates in hopes to educate, inform and inspire.