What Insurance do you need?

Friday, 01/05/2015

From extended warranty on entertainment systems and freezers to comprehensive cover against loss of earnings, phone theft or even items being pinched from your garden shed - if you’ve got it, a provider somewhere will be able to offer insurance on it. A significant financial challenge that many people encounter is trying to work out what needs insuring and what doesn't, as well as trying to decide which insurer offers the best policy for their needs. Take a look at the following pointers to help you decide whether you need to take out additional cover or whether you could actually manage with less.

Essential insurance

If you've got a car and want to drive it, appropriate motor insurance is a legal requirement. For people with a mortgage, the failure to have suitable buildings insurance in place can put you in breach of the terms under which your mortgage is granted. Other than these, most other insurance policies are optional, frequently being taken out based on individual perception of risk and the amount of income available to pay the premiums.

Over insurance

Many financial products offer free insurance as an incentive to select them in preference to similar offerings from competitors. Some credit cards, for example, provide an extended warranty on purchased goods, and fee paying bank accounts may offer free mobile phone insurance or travel insurance. A quick insurance audit can end up with many individuals saving money by avoiding insuring the same thing twice.

Life stage insurance

As people age, their financial needs and priorities change. Families, for example, may wish to make sure they have some sort of mortgage protection and loss of earnings cover in place so that children aren't adversely affected in the event of parental illness or a dramatic change in financial circumstances.

Managing insurance is an on-going task, as changing needs mean that some forms of cover are no longer required whilst fresh situations need alternative protection. Regularly reviewing your insurance situation enables a proactive money saving approach to be adopted and allows you to buy additional cover where it's necessary.


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Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk