Seek advice on insurance, urges Biba

Consumers have been urged to seek advice from an insurance broker before taking out a policy by the British Insurance Brokers’ Association (Biba).

Graeme Trudgill, technical and corporate affairs executive at Biba, has said that many insurance policies have become over-complicated and could be confusing for customers.

He advises people looking for insurance to consult a broker in order to avoid over-insuring and wasting money on “too many frills”.

Mr Trudgill commented: “The broker would be the best person to advise individual customers [on what cover they need] depending on individual circumstance.”

He added that over the past few years many insurers have made their policies more comprehensive and have tried to “include too many frills rather than sticking to the basics”.

Earlier this month, financial advice website Fool.co.uk reported that the average consumer takes out six different types of insurance on an annual basis costing £1,500 per year, yet is unaware of how much they are actually covered for.

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Apacs: Never reveal Pin

Apacs, the UK payments association, has emphasised the importance of credit card security and advised consumers to keep their Pin private.

A spokesperson for the association said people should make their Pins as complex as possible to avoid would-be fraudsters getting their hands on their cash.

However, she added that this can lead to confusion, adding that people can avoid this by selecting a familiar pattern.

“It is better not to use the same Pin number and, if you can, familiarise a sequence of codes; a number of a house that you know in combination with a good friend’s birthday.”

Finally, she emphasised the importance of never disclosing information regarding Pins or writing them down and storing them with the cards in question.

Recent research by Which? highlighted that one in three Brits have been a victim of credit card fraud in the past.

A previous CPP poll found that Londoners were the most likely to have their plastic stolen or fraudulently used, with 20 per cent and 28 per cent of the capital’s residents being a victim of such crimes respectively.

‘Holidays abroad to drop under credit crunch’

The current economic turmoil means that more people will be unable to afford a holiday overseas this year, the Family Holiday Association (FHA) has said.

A recent study by Abbey Credit Cards found that parents who planned to take their families abroad for the half-term break were hit with prices up to 80 per cent higher than usual.

John McDonald, the director of the FHA, commented: “I think holidays are really important for the well being of both the children and the parents…it is a disappointment that perhaps more people will miss out this year than perhaps did last year.”

Last week, insurance company Axa warned holidaymakers that if they arrange the different parts of their holiday separately, such as flights, hotel and cars, they could be leaving themselves open to unnecessary risks.

According to the company, travel insurance does not always cover people who book their holidays independently rather than through a travel company.

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AA: More people choosing small cars for cheaper insurance

More drivers are opting for smaller cars in an effort to secure cheaper car insurance premiums, AA Insurance has said.

Ian Crowder, public relations manager at the insurer, said that smaller cars are also becoming popular because they are more fuel-efficient and environmentally-friendly.

Drivers thinking about buying car insurance have been advised to check that it covers them for driving in a foreign, country, especially with the summer holidays coming up and people planning road trips to Europe.

Research company Defaqto found that more than one in five policies do not provide cover for driving in another country.

Mike Powell, consultant for General Insurance at Defaqto, said: “You need to check with your insurer to confirm cover is provided before you travel. Even if cover is given, policyholders should always inform their insurer of a trip abroad as this often forms part of the policy terms and conditions”.

However, the study also found that 46 per cent of policies do provide insurance abroad for up to 90 days at no extra cost.

Personal pensions ‘vital’ for women

Independent financial advisory Ruth Whitehead Associates has urged women in particular to make sure they have a personal pension set up, as well as other savings, to given them financial security in the future.

Ruth Whitehead, principle advisor for the company, said that it was important for women to take out a personal pension because their National Insurance contributions are more likely to be affected by time taken out from work, which could in turn lower their state penions.

According to the Pensions Advisory Service, only people who have made National Insurance contributions for about 90 per cent of the years in their working lives are entiteled to a full state pension.

Ms Whitehead said that women should consider “three things” to safeguard their financial future, one of them being a pension, although she added that pensions “now can’t be the only route to sorting out your long-term needs”.

She also noted that Isas were a good option, as well as property.

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