In your list of financial priorities where does sorting out your various insurances stand? If you are anything like me then I'm sure that it probably isn't the first thing on your mind when it comes to sitting down and looking at your financial situation. Buildings and contents, life and critical illness, vehicle and even payment protection Insurance on any loans you may have, should actually be a little higher up the list than it probably is.
To look at a very simple scenario, what would happen were you to come home one day and your living room was flooded, with your ceiling looking like a raincloud? If you didn't have home or buildings insurance I would hazard a guess at 1 - being extremely angry and 2 - shelling out a huge amount of money that you can ill afford to make massive repairs. Its an horrendous situation to imagine but one that could be only too realistic.
These days with all the comparison sites to look at, insurance in its various forms is perhaps one of the most simple financial necessities that you can arrange yourself. There are so many companies that are fighting for your custom and so many great and more importantly, cheap, deals available that its well worth your while to take a look into it. Take buildings and contents insurance for example. Protecting your home and contents from burglary, fire, flood, structural damage and accidental damage should be a given but you would be surprised at how few households consider it a necessity. The average cost of buildings and contents insurance for a standard three bedroom home in a fairly usual post code area currently stands at approximately 25GBP per month. Now thats not bad for peace of mind and ensuring that if anything does go wrong, you're not spending money that you can ill afford.
Of course buildings and contents is probably the most popular general insurance product but there are other products such as life and Critical Illness Insurance that are probably just as important. Life and critical illness insurance is seen as a luxury rather than a necessity by a surprising number of consumers but I would beg to differ. If you have a young family and are the sole provider for your household, what would happen were you to fall ill or, god forbid, suffer a fatality? In the majority of cases without life and critical illness insurance it would leave the family in a horrendously difficult position. Mortgage repayments not met, no income and no money for living expenses. Could you leave your family in that position? No, nor could I. Again, its a simple product to arrange and one that you can do yourself.
What about vehicle insurance. Whether you own a van, a car or a motorcycle, despite it being illegal to ride or drive a vehicle on UK highways without it, insurance is hugely important in terms of peace of mind. Now, its unfortunate that lawful drivers bear the brunt in terms of cost and raised premiums, of drivers who don't have vehicle insurance but its still not a huge expense and one that really is an essential. There are a vast number of companies offering a hugely different array of vehicle insurance products ranging from those with 4-5 years no claims, to those who deal entirely with those drivers unfortunate enough to have experienced a driving ban. Again, there are comparison sites that deal exclusively with vehicle insurance so, do your research and make sure you get the product with the right fit.
Insurances are a lot more important than they are considered by many consumers and I would hesitate before telling anyone not to look into getting all the above products, despite it costing a little more in terms of monthly outlay. I suppose it all boils down to making sure that you budget correctly and that you get the best quality products you can buy for the money that you're prepared to spend on a monthly or yearly basis.
To look at a very simple scenario, what would happen were you to come home one day and your living room was flooded, with your ceiling looking like a raincloud? If you didn't have home or buildings insurance I would hazard a guess at 1 - being extremely angry and 2 - shelling out a huge amount of money that you can ill afford to make massive repairs. Its an horrendous situation to imagine but one that could be only too realistic.
These days with all the comparison sites to look at, insurance in its various forms is perhaps one of the most simple financial necessities that you can arrange yourself. There are so many companies that are fighting for your custom and so many great and more importantly, cheap, deals available that its well worth your while to take a look into it. Take buildings and contents insurance for example. Protecting your home and contents from burglary, fire, flood, structural damage and accidental damage should be a given but you would be surprised at how few households consider it a necessity. The average cost of buildings and contents insurance for a standard three bedroom home in a fairly usual post code area currently stands at approximately 25GBP per month. Now thats not bad for peace of mind and ensuring that if anything does go wrong, you're not spending money that you can ill afford.
Of course buildings and contents is probably the most popular general insurance product but there are other products such as life and Critical Illness Insurance that are probably just as important. Life and critical illness insurance is seen as a luxury rather than a necessity by a surprising number of consumers but I would beg to differ. If you have a young family and are the sole provider for your household, what would happen were you to fall ill or, god forbid, suffer a fatality? In the majority of cases without life and critical illness insurance it would leave the family in a horrendously difficult position. Mortgage repayments not met, no income and no money for living expenses. Could you leave your family in that position? No, nor could I. Again, its a simple product to arrange and one that you can do yourself.
What about vehicle insurance. Whether you own a van, a car or a motorcycle, despite it being illegal to ride or drive a vehicle on UK highways without it, insurance is hugely important in terms of peace of mind. Now, its unfortunate that lawful drivers bear the brunt in terms of cost and raised premiums, of drivers who don't have vehicle insurance but its still not a huge expense and one that really is an essential. There are a vast number of companies offering a hugely different array of vehicle insurance products ranging from those with 4-5 years no claims, to those who deal entirely with those drivers unfortunate enough to have experienced a driving ban. Again, there are comparison sites that deal exclusively with vehicle insurance so, do your research and make sure you get the product with the right fit.
Insurances are a lot more important than they are considered by many consumers and I would hesitate before telling anyone not to look into getting all the above products, despite it costing a little more in terms of monthly outlay. I suppose it all boils down to making sure that you budget correctly and that you get the best quality products you can buy for the money that you're prepared to spend on a monthly or yearly basis.
This post first appeared on The Financial Plan - Credit, Loans, Debt & Debt Ma, please read the originial post: here
