Five tips on buying Insurance

For many of us, insurance isn’t something we think much about – until we really need it, usually after a loss, damage or another unexpected event has occurred.

Unfortunately, for some people this is when they realise that their insurance policy doesn’t cover what they needed it to cover, leaving them seriously out of pocket. Before you commit to a new policy, here are our top tips for choosing the right insurance.

Shop around

Not all insurance is the same therefore, the cheapest policy isn’t always the best one to go for – it won’t necessarily cover everything you need, so be sure to compare the level of cover that it offers, not just the price.

Aim to find at least three different quotes, so that you have a few options of costs and policies. Remember that price comparison websites might seem like a quick and easy option to compare the market but actually not every insurance company will be on there, so ask for recommendations from friends and family and request quotes directly from providers if needed.

Or, better yet, speak to a financial adviser or insurance broker who will be able to do all the shopping around for you and offer you a range of quotes to suit your budget and requirements.

Read the small print

Hands up who actually reads the small print? It’s something many of us are guilty of skipping, but it could mean that you’re wasting money on a policy that just isn’t fit for purpose.

The worst case scenario is that a disaster happens, you go to claim on your insurance and find that you aren’t actually covered for what you needed, so go through all of your policy documents with a fine-tooth comb to make sure you know exactly what you’re paying for.

An adviser can help to clarify any queries that you may have about your policy.

Be honest

With any policy, there are certain variables that will impact the cost. For example, if you have a long-term health condition your travel insurance is likely to be more expensive, or if you’ve recently passed your driving test, your car insurance premiums will be higher.

However, it’s important to be completely honest when applying for a policy, as if you have to make a claim, it could be invalidated or not fully paid if you’re found out to have not been fully honest. If the information you’ve supplied is false, you simply aren’t covered.

Stay up-to-date

As your needs change, so will the insurance policy that you need, so make sure that you regularly review them.

From buying a new computer to having building work on your home, there are certain changes that need to be declared to make sure you’re still appropriately covered.

If you don’t tell your insurer about your new circumstances, you could be breaching the terms of your policy, so make sure to stay on top of it.

Talk to an expert

Finding an insurance policy that is right for you can be a complicated process, not to mention risky if you’re not sure what you’re looking for.

Some policies have very complex terms and vary greatly, so an insurance adviser will discuss your requirements and find you a policy that works for you. Plus, they can help you to find a deal at the best price!

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