What Are The Benefits Of Insurance?
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If you’re currently reassessing your budget due to the cost of living crisis, you might be wondering ‘what are the benefits of insurance?’ and is it really something that you need to keep paying for?
This post takes a look at some of the reasons why you might need insurance and a few handy ways to find the best deal no matter what type of insurance you’re looking for.
While there are some things we are legally required to have insurance for, such as our cars and homes, some types of insurance are optional.
So, what are the benefits of insurance, and how do you decide which types of insurance are worth it and which you could probably ditch from your budget?
I recently wrote a post all about how much I value our life insurance, and how it will always be one of the last things to cut out if we really needed to reduce our spending.
If the worst was to happen and I was to lose my husband unexpectedly, it’s reassuring to know that the insurance would pay off our mortgage and not leave me wondering how I would keep a roof over our heads.
Insurance Gives You Peace of Mind
One of the best things insurance can do is give you peace of mind. This is especially true if you don’t have much in the way of savings.
For example, if your boiler was to break and need replacing, would you be able to afford several thousand pounds to replace it?
Boiler insurance means you can pay a small amount each month safe in the knowledge that if something goes wrong, the bulk of the cost would be covered by your insurance policy.
What Should I Insure?
Most people will choose to insure items of value that would be expensive for them to replace. This could be anything from jewelry to antiques, to computers and bikes and mobile phones.
While some items may be covered on your home insurance policy, it’s always worth adding anything high-value that you would want to replace if got damaged or stolen.
Contents insurance isn’t a legal requirement for renters, but it might be worth considering if you can afford it rather than insuring lots of individual items.
There are some items in your home that you might not need to insure. For example, many mobile phone contracts allow you to upgrade your phone early for a reasonable fee which could be an option for a broken phone.
Amazon kid’s tablets come with a year’s warranty, so if they get dropped and smashed during that time, Amazon will replace them free of charge.
You can also insure household items such as washing machines and cookers and you can get insurance policies that cover non-structural eventualities such as needing to call out a plumber for a leak.
My parents have a Victorian property with terrible plumbing and they have found this type of insurance has really helped them, as often the work is backed by a guarantee for a couple of months, so if something goes wrong again (which in their house it inevitably does!) they’re still covered.
Another type of cover you might not have considered is GAP insurance. Providers such as Sura offer this as an additional policy designed to help protect the value of your vehicle if it is written off.
Depending on the type of cover you choose, it can help bridge the difference between your insurer’s payout and the amount you originally paid for the car.
Insuring Your Pets
Insuring pets while they are young is always a good idea as pre-existing conditions can hugely increase the price of your premiums.
It’s also worth remembering that there are some ongoing conditions that might not be covered by pay insurance and very few pet insurance policies cover the full cost of treatment, so you may still have some out-of-pocket expenses, even with the most comprehensive cover.
Many policies also have a cap on how much they’ll pay out over the course of a year.
Even though pet insurance may seem expensive, it’s worth it when it comes to our beloved furry friends – not being able to fund treatment that they might need is an awful prospect for any pet owners.
Related Post: The Heartbreak of Exclusions: Navigating Pet Insurance for Senior Pets
Should You Insure Your Wedding?
Wedding costs can easily spiral into the tens of thousands and while in the happy haze of wedding planning it’s easy to believe nothing will ever go wrong with your relationships, it does happen, probably more than most brides-to-be realize.
Then there are other things that can go wrong, such as venues shutting down and photographers going awol, leaving prospective couples out of pocket.
Protect yourself and your money (and other people’s money too if your parents or family are gifting large amounts of money!) and get some wedding insurance!
It’s worth noting that some providers may still have restrictions relating to Covid-19 so be sure to read the T&Cs very carefully.
How To Get The Best Insurance Deal
If you’re looking to get insurance of any type, then you’re going to want to get the best deal possible.
While it can take some time, you could end up saving quite a bit of money so it’s worth putting in the effort and using some of the tips below.
Try Using A Comparison Website
One of the best ways to get a discount on any type of insurance is by using a comparison website such as Protect Your Family.
The comparison site will search thousands of different insurance policies on your behalf and present you with the best deals. This is much quicker than looking through loads of different websites yourself and will often come up with the best deals on the market.
Set Up Reminders – Never Auto-Renew!
Always set a reminder for around six weeks before your insurance is due. This should give you plenty of time to search for a better deal before your old policy runs out.
While insurers are no longer allowed to give new customers better deals than existing customers, you might still find the price of your policy has increased and that you’d be better offer going elsewhere. This is especially true when it comes to home and car insurance.
Double Check Your Details
Make sure all of the details are correct when getting an insurance quote, including things such as where you work and how many years of no claims you have.
It can be easy to glance through forms online without really paying attention, but details such as these can make a difference to how much you’ll be paying.
What Are The Benefits Of Insurance? – Final Thoughts
Insurance can be a great way to give you peace of mind, especially if you have limited savings and would really struggle to cover the costs of replacing expensive items or veterinary treatment for your pet.
I’ll finish up by saying whatever type of insurance policy you take out, always read the terms and conditions carefully to make sure you are purchasing adequate cover for your needs and that you can afford any excess charges your policy may have.
It’s nice that you talked about how one of the best things insurance could do is give you peace of mind. I’ve been quite curious about insurance for quite a while now and I am thinking of finally availing one. I should probably try consulting with an insurance agency later and see what my insurance options are.