If you've ever had a car crash, a flight cancelled, fallen
seriously ill or been robbed, you'll know how stressful these
incidents can be. If you have insurance, the cost of repairs,
medical treatments, travel changes or theft can be softened.
Insurance provides the money you need when things go wrong. But
with so many companies providing different types of insurance, it's
important to read the fine print, ask lots of questions and find
the right policy for your needs.
Types of insurance
Here are the different types of insurance that you can buy:
You may also need to disaster proof your
finances and financial documents.
In life there is always a risk that things can go wrong. And if
they do, you need money to meet your costs and avoid chaos in your
Insurance is about managing risk. By taking out an insurance
policy, you are transferring financial risk to your insurer, for a
fee or 'premium'. Without insurance, you're
taking the risk of meeting those costs yourself.
Apply these tips and you're on your way to making good insurance
- Shop around - Get quotes from different
insurers and compare what they offer. Don't be afraid to ask lots
of questions. If you're comparing features online see our guidance
on using comparison
- Consider using a broker - An insurance broker
can give you advice about your insurance needs. You can
search the National
Insurance Brokers Association website to find an insurance
- Choose carefully - Write a list of the
things you need (i.e. what you want covered) and pick the policy
that meets your needs.
- Renew your insurance - Do this when your old
policy expires or as your circumstances change. Keep track of your
insurance renewals with the Know Risk
- Work out how much you need - Do this when you
start or renew your policy, so that you don't find yourself
significantly underinsured. Insurance company websites have tools
to help you work this out.
- Check exclusions - Always ask what is and
isn't covered by your policy.
- Check the costs - You will pay a regular fee,
known as a 'premium', for your cover. And when you make a claim
your payout will be reduced by an amount, known as the 'excess'.
Don't sign on the dotted line until you know all the costs.
- Be honest with your insurer - Tell it like it
is because your 'duty of disclosure' means you must tell the truth
when you apply. If you leave details out, any future claim may be
There are some things you need to do when making an insurance
- Inform your insurer as soon as possible and include as many
details as possible
- Tell the whole truth
- Provide all documents supporting your claim
- Cooperate with the insurer and the people they employ to help
assess the claim, such as investigators or doctors
Whenever you provide information to your
insurer, you need to remember your duty of disclosure. If the
information on your application or claim form is incorrect or
misleading, your claim might be denied.
Last updated: 03 Mar 2014
Thank you for your feedback