Insurance

Insurance is important because it protects you in the event of something bad happening to your vehicle, property, pet or person. It’s not nice to think of accidents or illnesses happening to us, but the truth of the matter is that these things do sometimes happen, and you’ll want to be financially protected if and when they do.

In some cases, it’s legally required to have insurance. This is true for motorised vehicles — cars, vans, motorbikes, caravans. Driving a vehicle in the UK without at least the lowest level of insurance is illegal, and the penalties for such behaviour are not nice.

Other insurance policies are not legal requirements, but are financially wise. Take home, travel or fully comprehensive vehicle insurance, for example. If you own your home and do not have buildings or contents insurance, then you’ll have to pay if your house is damaged or you’re the victim of burglary. Are you sure you’ll be able to afford such payouts if the time comes?

Then there are insurance types that are not legal requirements, and it’s ultimately up to you if you invest them or not. Take pet insurance, for example. Think about the age of your pet, whether it’s had any previous conditions and its lifestyle. Then think about how vet bills cost. From this, you can decide whether you think pet insurance is for you or not.

So, insurance is important because it’s either a legal requirement, financially wise or just good for your peace of mind.

Well, that all depends on what you want to insure and to what level you want it insured. If you want to insure your motorised vehicle — your car, van or motorbike — there are different levels and types of insurance you can invest in. These will affect what price you pay and for how much you are covered.

If you want to get home insurance, you’ll have to look into getting building insurance, contents insurance or both.

Going on holiday? Then it’s highly advisable to get some travel insurance. Travel (or holiday) insurance doesn’t tend to be too expensive. And it’s a very good idea to have, especially if you’re going somewhere with high medical costs, such as the USA.

Then there’s pet insurance. These policies insure your furry friends in the sad cases of accidents, illnesses and theft.

We understand. Getting insurance can be a pain. Not least because it can often come at a high price. A lot of the time, the cost of your insurance depends a lot on the person getting out the policy — and this is where we can see the price rise.

This is especially true for motor insurance. If you’re a young, relatively inexperienced driver, then you’re likely to pay more in insurance as providers see you as more likely to have an accident and take out a claim.

The same goes for travel insurance. Older people with previous medical conditions pay more for travel insurance as they’re seen as more likely to fall ill and take out a claim.

There are some ways to make insurance cheaper, however. For motor, home and pet insurance, you can increase your voluntary excess. This is the amount you agree with your provider to pay every time you take out a claim. If you agree to pay a higher voluntary excess, then you can end up paying less for your premiums.

This could be good for you if you think it’s unlikely you’ll take out a claim. Don’t go too mad when it comes to agreeing on a voluntary excess price, though. You’ll have to be able to afford the price if it does come to you taking out a claim.