When it comes to reviewing your finances and working out how you can save money, it’s very common to start with looking at your monthly direct debits or subscriptions to see which ones you really need and which ones you don’t. One of the things many of us spend money on and often never see any return for it is insurance policies. Most people have more than one for various things in their lives, but are they all needed? It’s a tricky decision to make, as it would typically be that as soon as you cancel your policy, you’ll probably need it, so what should you do and what are the most important things to insure?
This one is easy; if you have a car, then you have to insure it. It’s the law. The minimum cover you need for your car insurance is third-party insurance, so if you are looking to save money then if you currently have comprehensive cover you could consider cutting it down to cover on a fundamental level of protection – however, this might not be adequate for you. It is not always the cheapest option. If you are looking to save money on your car insurance, then perhaps the first thing to do would be to shop around different providers to find the best deal for you.
Public Liability Insurance
Public Liability policies provide cover for damage to other people’s property and injuries caused to other people and arising from your negligence. If you are a business owner, then you will need Public Liability insurance and while it isn’t a legal requirement, in a world where people are often looking for someone to blame and to cash in where they can. If you’re not sure if your business needs insurance or what you would need to cover then it’s a good idea to speak to a public liability insurance broker who can tell you all you need to know.
If you don’t have any dependents or debts, then life insurance may not be something that you need to be forking out for right now. However, if there are members of your family who are dependent on your income, life insurance is necessary. Although it’s not something that you will want to think about, it is crucial to make sure your dependents are covered should you no longer be around to support them.
Having a home and a mortgage usually requires you to have home insurance whether you like it or not. However, even if you think you don’t need home insurance and feel it’s a waste of money, it is actually worth having it for the peace of mind it brings you. Having building and contents insurance will protect you financially against damage to your home. Realistically it’s something that we should all have because, in the event of something happening, the financial implications could have a detrimental effect on yours and your family’s life. If you are victim to a flood or fire, for example, you could be left with nothing and this would be a time when you would be extremely grateful that you had insurance to cover it.
Travel insurance is also not a legal requirement, but it is again something that certainly will put your mind at rest while you’re abroad. If you had an accident while you were on holiday, the cost of going to the hospital and your treatment, extended accommodation and a change to your flights could be huge. However, for quite a small amount of money, you can get decent travel insurance to cover you in case of something happening. Like with any different type of insurance, it’s important to shop around to read the different policies to make sure you are covered for any activities you might do while you are away. Or travel insurance could cover you if you were to have your belongings stolen or your holiday cancelled. Also, when you’re looking for travel insurance, before you go and buy a new policy, check your existing ones. For example, your house insurance may have an add on policy or your current contents insurance might cover your baggage while you are away.
Pet insurance is also more of an optional cost, but if you have a pet, then you’ll be thankful you’ve got insurance as it could prove vital if you ever incur vets’ fees. If your pet all of a sudden falls ill and needs treatment, then having the protection from your pet insurance will give you the peace of mind that you can get your pet sorted out and the cost will be paid for. The cost of taking your pet to the vet can be really expensive, and it’s usually not just a one-off fee either, but your pet may need continued care or simply check-ups every now and again.
Mobile Phone Insurance
When you buy a new mobile phone, you’ll likely have a salesperson trying to sell you other things as well. Insurance for your phone can be really useful if you lose it or it gets stolen, especially if you have a very valuable phone. Today it’s not just about the physical phone, but about all the information on it, however, the majority of that should be backed up on the cloud which makes things easier for you. Either way, though, losing your phone can be a real inconvenience and having insurance can make it that bit easier for you. You should check if you can add your mobile phone to your contents insurance rather than taking out extra cover and if this is not an option, then again shop around for the best deal to suit you. Don’t just take the one that is offered to you when you buy your phone.
Like anything, it really is down to personal preference and circumstance. If you don’t like the idea of paying for insurance, you could have a savings account for emergencies, and then you’d have a pot of money for your vet’s bills or whatever it is you need it for.