Insurance Jargon Buster

We all want the best possible deal when it comes to insurance. The cost of Insurance/assurance premiums can certainly be a major factor when weighing up the difference between all UK insurers and their products. Using the internet to shop around can save time and money. You can see the difference between UK Insurance quotes online thus saving yourself money on premium payments. You can surf through all the various products that are available quickly and easily. You will be able to insure whatever you wish to and probably at the premium you are happy to pay. You should be clear about what it is you want to insure, are there any extras required, what will the payment schedule be. Understand and be aware that there will be a policy excess - this is a predetermined amount that your Insurance Broker will state you are responsible for, should you make a claim, ( usually £50 to £200). You should also understand what if any the exclusions are.

UMBRELLA STYLE INSURANCE

Umbrella Insurance is a way of covering all your insurance needs under one UK Insurance providers protection. All premiums are combined and paid on the one specified date. Because there is so much choice out there some insurance brokers offer the option of making it simpler for the consumer to just insure everything in one go from home to pets under the one premium. Some insurance companies will offer a discount if you opt for this style of insurance, but you should be aware that although this type of insurance seems to be easier to manage it will never be the most cost effective way to insure in the long run. Premiums, extras and excess levels usually work out to cost more over time on this sort of insurance.

PREMIUMS

Premiums should always be paid ontime as a late payment could result in you not being covered for that period. If you are paying for your insurance using installments should you make a claim early then you could find yourself being required to pay the rest of the years premium instantly. Make sure that you are confident you will be able to meet the required monthly payments before opening a policy.

CLAIMS

If you need to make a claim on your insurance follow the guide lines that the insurance company have laid down for you, if you make a claim in the correct manor then your claim will be dealt with quickly. If you just fancy a new carpet or some spare cash making a claim on your insurance is not the way to go about it. If you make false claims then this will result in your premiums going up as well as everybody else's.

EXCESS

Insurance consists of legally binding contracts, these contracts have to be adhered to. As a consumer you would signed an agreement which stated you would be responsible for the payment of a predetermined amount of money should you make a claim against your policy. This predetermined amount is classed as an uninsured loss, it is your responsibility irrespective of blame and you will have to find it out of your own pocket as it is stated to be a condition of the insurance policies claims procedure.

EXCLUSIONS

Unfortunately there are always exclusions in a UK insurance policy. You should be aware that no policy will cover you for absolutely every possible eventuality. Insurance companies will put exclusions into their policies so that they can measure and quantify the risks that they are accepting. They of course will not want to cover you for everything otherwise they would go out of business due to all the claims being made against policies.

No-claims discount

You can reduce your premium by cultivating a no-claims bonus, which is a cumulative reward that insurers give to policyholders who do not claim on their policies. Most companies offer a discount for each year you don't make a claim (usually for up to four or five years). Ask your insurer what the maximum amount of discount is that you can accumulate. Once you have built up your maximum no claims bonus, you can normally insure against losing it by paying extra on your premium. Should you wish to switch to another insurer you can usually transfer this no claims discount to you new insurer.

Breakdown cover

For an extra charge you can often add breakdown cover to your car insurance. There's lots of different levels available, from basic cover which would ensure that you are towed to the nearest garage, to policies which cover restarting your car. Good breakdown cover will ensure all parts and labours costs are also covered. You can also take out separate breakdown cover as a stand alone policy.

Premiums can Rise

Premiums are used to pay everyone’s claims and insurers need to ensure they don’t loose money, so it is possible that your premiums may rise from time to time. To stay in business, insurers must take in more in premiums than they pay out in claims.
Uninsured drivers who have an accident also raise the cost of insurance, this is because when an uninsured driver has an accident or causes an injury to another driver or a pedestrian, the money for repairs and compensation is provided by insurers, who pass on the cost to their policyholders.

Shop around and get the best insurance one that suits your own personal circumstances. Review your Insurance whenever you feel you may require different cover.