types-of-insurance.co.uk

Car insurance is an insurance policy that provides cover against losses incurred as a result of collisions and accidents, and also any liability associated with them.

Since 1930, all drivers in the UK have been required to have at least “third party” insurance while on public highways. This does not apply however to private land. Third party insurance covers the vehicles of others involved should an accident occur but not the vehicle of the insured party. To cover their vehicle as well requires “Comprehensive” cover.

There are many factors affecting the cost of insurance based on various risk factors:

The type of vehicle: A large 4×4 or a powerful sports car are more likely to be involved in accidents.

Age: New drivers will have to pay higher premiums because they have less driving experience and are involved in more accidents than older, more experienced drivers.

Gender: Males generally drive more miles annually across all age groups and are therefore more likely be involved in accidents than females.

Marital Status: Married individuals pay less for car insurance.

Distance driven: Drivers who drive less miles annually can often receive massive discounts.

It’s therefore important to find the right insurance company for you.

1.       Install an alarm system: Some insurance companies prefer certain alarms, therefore making the house insurance cheaper.

2.       Key crime: Make sure you don’t leave your keys on show in your house, for e.g. on hooks, by the window, under the plant pot.

3.       Secure locks: Make sure you change the locks of your new home as past owners could still have a key.

4.       Going away: Make sure you cancel weekly deliveries such as milk or newspapers and ask someone you trust to keep an eye on the house for you.

5.       Quit smoking: If you smoke, you are putting your house at risk of a fire. When you are signing up for house insurance most insurance companies will ask if you smoke. Install a smoke alarm that works for protection.

6.       Outdoor lighting: Will enable you to see who is visiting you at night.

7.       Neighbourhood watch: If you join the organization it could reduce you insurance premiums by 5%

8.       Unnecessary claims: Think before you claim as the less you claim the less your insurance premiums will be.

There could possibly be exclusions outlined in your insurance policy, for example, intentional loss, neglect, general failure of power and even harm instigated by war. If it was proven that you failed to look after your property, for example, you did not repair a leaky roof, you might not be covered. It goes without saying that if you lose an object on purpose or harm your property, there will be no cover. One other exclusion that can quite expensive is the Law segregation. Building regulations set out by the government that bump up the cost of repairing/re-building after a loss might not be included in your policy.

The exact coverage of an insurance policy is very difficult to identify as insurance policies differ and there are hundreds and hundreds of insurance companies. However, the majority of home-owner insurance policies consist of a standard layout. You will find that all home-owner insurance policies will cover two significant areas; liability & property. They will protect your possessions and structures and cover you against personal liability. Personal liability is self explanatory; it means that you are lawfully required to pay to second party for conduct caused by you, your immediate family, or your property.

Life insurance is a contract between the policy owner and the insurer, the insurer agrees to pay an amount of money if the insured individual dies or other events such as a terminal illness. The policy owner agrees to pay stipulated amount called a premium. This can either be paid in a lump some or at regular intervals. In some countries there are designs where bills and death expenses plus catering for after funeral expenses are also included in Policy Premium. Special provisions apply to life insurance, such as suicide which nulls the contract as well as misrepresentations which also breach the contract grounds. On the insured individuals death the insurer requires proof of death before paying the claim in the form of a death certificate and a completed claims form.

Landlords insurance is a policy that covers a property owner from financial losses with the property that they are letting out, mainly a landlord insurance policy cover the building and sometimes the contents in it. This policy normally covers things such as fire, escape of water/oil, subsidence, lightning, explosion, flood, theft and malicious damage. All policies are different and cover different things. Most companies provide the option of an extra cover on top of what is considered the standard cover. These include more things such as accidental damage and legal protection. Policy’s price may differ due to an individual’s circumstances, for instance, how secure your home is and previous insurance history.

Critical illness insurance is an insurance product; the insurer agrees to pay a lump sum cash payment if the policy holder is diagnosed with one of the critical illnesses listed in the insurance policy. The policy may also include a system in which they pay out regular income and the payout may also be on the policy holder undergoing a surgical procedure, for example, having a heart bypass operation. The term and conditions will vary with each different policy. The critical illness insurance policy may require the policyholder to survive a minimum number of days from when the illness first got diagnosed. The survival can vary but the most common survival periods used are 28 and 30 days.