How to buy travel insurance that suits your individual needs?

The word holiday conjures images of exotic destinations complete with golden beaches, glorious sunshine, hours of relaxation and quality time with your partner. It should be a truly tranquil experience. It is probably the biggest investment you will make in a year and something that you will have been looking forward to for many months. The last thing that you would want is for your peace of mind to be shattered, but, in the event of untoward circumstances, it is great to know that you are covered for any eventuality. With adequate insurance in place, you can truly relax, knowing that your luggage, health and even the holiday itself are protected. Taking a trip without adequate insurance is a one-way ticket to worry and could end up ruining your precious holiday.

If you fall seriously ill abroad and need hospital treatment, the average cost is now £2,040, up 6.25% year on year, according to research by Sainsbury’s Finance.

Travel insurance: do you really need it for a European … (n.d.). Retrieved from http://www.guardian.co.uk/money/2010/sep/11/travel-insurance-european-holiday

If any of the following incidents occur, you will be glad that you have adequate cover.

• The airline decides to cancel your flight.
• Due to illness you need to cancel the trip.
• Your day pack with your passport and wallet are stolen. You need to obtain emergency cash and replace the passport.
• You have a medical emergency whilst on holiday.
• A terrorist incident occurs at your destination and you wish to cancel the trip.

Annual travel insurance can cover all these events, as well as a few of you have never considered.

Cover for medical emergencies is probably the most vital element here. Circumstances may conspire for you to miss your flight, or lose belongings, but this pales in comparison to concerns about your health. It is hard to imagine a worse situation than being stuck in a foreign country, unable to repatriate yourself and at the mercy of inadequate medical care.

The bills for certain medical emergencies, for example, an air ambulance transfer can be truly astronomical.

The most expensive country for inpatient treatment is the US, with the average hospital visit costing £6,000

Travel insurance: do you really need it for a European … (n.d.). Retrieved from http://www.guardian.co.uk/money/2010/sep/11/travel-insurance-european-holiday

If travelling in Europe a European Health Insurance Card (EHIC) will cover basic medical care, and is a requirement to validate most travel insurance. As a UK resident, the EHIC gives access to state provided medical care at a reduced cost, or sometimes for free, when travelling in EU countries. You will receive the same care as a resident of the country you are visiting. It will not cover costs for repatriations and routine monitoring of existing conditions. When engaging in dangerous sports, insurance becomes even more vital, as the likelihood of an accident is highly increased. A skiing holiday can become extremely expensive if you need rescuing from the top of the mountain.

As we become older our insurance needs change. Pensioners travel insurance can be more expensive as the risks a well involved are greater for the insurer. It is exciting to know that you can still scratch the travel itch and enjoy an active retirement. There is a host of reputable insurance brokers, like Columbus Direct, who can present a range of policies and advise on what is best for you.

Tags: inpatient treatment, incident, Insurance, mind, Member state of the European Union, worse situation

Parents keen to take out health insurance for their kids

According to recent reports there has been a rush in the number of parents that are keen to take out health insurance cover for their children, and this follows an outbreak of illnesses that have caused grave concern to parents. Read more

Tags: excellent care, health insurance, national health service, kids health insurance, healthcare, cover

One in seven drivers admit to getting behind the wheel with no insurance

Up to 15 per cent of motorists admit to driving a car without being covered by insurance, according to new research.

The findings from moneysupermarket.com show that nine per cent broke the law while behind the wheel of someone else’s vehicle and a further six per cent said they had driven their own cars without having any cover in place.

Richard Mason, director of insurance at moneysupermarket.com, said that anyone who drives without insurance, no matter the length of the distance and whether it is their car or not, is breaking the law.

“Not only that, but it costs the insurance industry over £500 million each year in claims, which drives up the cost of insurance for responsible motorists,” he continued.

Men are more than twice as likely as women to drive while uninsured, with 21 per cent admitting doing so according to the results of the study.

Meanwhile, a study conducted by confused.com revealed that men are officially worse drivers than women.

Tags: Business Finance, insurance industry, Confused.com, Insurance, distance, research

What to look for with car insurance

Car insurance is a compulsory form of insurance cover for drivers in the UK that are taking their vehicles out on the road. Read more

Tags: car insurance, cover, installments, life insurance, site, Insurance, lower your premiums, breakdown

Home insurance should cover new installations

Homeowners could benefit from increasing home insurance cover to cater for the increased value of their homes following renovations advised an industry body.

The British Insurance Brokers’ Association (BIBA) said that the reassessment of the contents value and building cover is dependent on what work has been done and its size.

Steve Foulsham, technical services officer for BIBA, said: “If it’s an expensive, state of the art new kitchen worth £10,000, then you may wish to increase your sum insured to cater for that.”

He added that BIBA gets many queries from members of the public asking for clarification on what falls within home and contents insurance.

The “general feeling” among insurers is that once a renovation has been fixed down, it becomes part of the building, Mr Foulsham concluded.

According to the British Retail Consortium, citing figures from Datamonitor, in 2008 the UK DIY and hardware market is estimated to be worth £16.1 billion.

This is an increase of 17.7 per cent since 2003.

Tags: cover, economics, industry, part, sum, building, public asking, body

Payment Protection Insurance Cover

Anyone that takes out finance likes to have the peace of mind that they are protected against situations that could render them unable to make repayments, and payment protection insurance cover is an effective way to do this. Read more

Tags: payment, Insurance, Loans, credit, cards, cost, cover

Home insurance market remains competitive

Prices in the home insurance market are still competitive despite predictions that flood damage claims earlier this year would inflate premiums, according to the British Insurance Brokers’ Association (BIBA).

Graeme Trugdill, technical services manager at the organisation, commented: “Home insurance is still ultra-competitive and you see during any advert break on TV, companies saying we will be your cheapest home insurance option. It is still very competitive.”

Although many thought the flooding would hit home insurance consumers hard, he insists there are still some good deals out there.

He advises those looking for cover to seek advice from an independent source to compare the best ones available.

According to a BBC Panorama programme, in the three months up to July 23rd this year, rainfall was over double the average for that time of year.

Furthermore, it reported that 60,000 homes were hit by the summer’s floods, with the environment agency stating that the chance of London’s flood barriers being overwhelmed by flood is currently at 0.05 per cent.

Tags: British Insurance Brokers, flood, Financial economics, London's flood barriers, weather, environment agency, cover, Business and Economy

Do tenants need home insurance?

Home insurance is a vital form of protective cover for homeowners, as it provides valuable protection against the financial losses related to damage to the home, or damage, theft, or loss of belongings. Read more

Tags: belongings, cover, Insurance, home, theft, fire, tenant, possessions

Huge difference in car insurance premiums based on jobs

A recent survey has shown that there is a huge difference in the amount of money drivers have to pay for their car insurance based on their job – even in cases where their jobs do not involve driving in many cases.

As part of the research thirteen insurance companies were used and quotes compared for 465 different professions. The results of the research showed that there was a difference of around £850 between the premiums paid by those in the highest bracket professions and the amount paid by those in the lowest bracket professions.

At the top of the league tables and paying the highest in terms of insurance premiums are footballers, who are charged an average of £1348 a year for fully comprehensive car insurance. Other professions in the top ten included comedians, who were charged the second highest premiums, stuntmen, circus employees, cab drivers, fortune tellers, builders, and national press journalists. Other professions made up the top fifteen highest paying policyholders, including bin men, driving instructors, mechanics, telephone salesmen, and bizarrely beekeepers.

Amongst those paying the lowest premiums on their car insurance cover were secretaries, who enjoyed the lowest premiums of all the professions included in the research, police officers, paramedics, doctors, lawyers, bank managers, teachers, firemen, and computer consultants. One insurance professional stated: “Insurers assess risk in many different ways — one of which is profession.”

However, she added that it was still important for people to compare quotes despite their profession, as many insurance companies also base premiums on their own claims experience of different professions.

The research was carried out by insurance price comparison website confused.com, and in order to get the different quotes the company used the character of a man aged 32, living in the London area, driving a Ford Mondeo, and enjoying maximum no claims bonus.

Tom Smith
5th November 2007

Tags: price, cover, occupation, quote, depending, premium, Insurance, car, vehicle

Old people ’struggling’ to get insurance

Ageism is rife when it comes to f”>insurance, according to a spokesperson from Age Concern.

The spokesperson said that many people from the older generation who are still healthy are turned away by insurers.

She explained that one third of people have experiencing age discrimination from insurance companies, with 92 per cent of travel insurance policies imposing upper age limits.

“Someone’s age should not determine whether they are fit to travel. When older people themselves see no barriers to travelling and there are no relevant medical issues then companies should not restrict their activities,” she said.

Furthermore, she continued, insurance companies should be responsive to those who could negatively impact upon their business by looking elsewhere for cover.

Saga claims that the rise in the number of over-50s travelling is proven by the fact their long-haul business has doubled over the last 11 years.

Tags: number, cover, fact, finance, third, business, age discrimination, saga

Make sure your kids’ belongings are insured

Parents in the UK are being urged to ensure that their children’s belongings are insured after research showed that kids today carry around an array of expensive gadgets and items when going to school or college.

This includes mobile phones, MP3 players, iPods, handheld games consoles, digital cameras, and even expensive jewellery in some cases. Industry experts state that the cost of replacing the items should they be lost, stolen, or damaged could be very high, and therefore parents should make sure that there is adequate insurance in place.

In addition to a range of expensive gadgets and jewellery, many kids also carry costly sports equipment or musical instruments to school or college, and again the cost of replacement in the event of loss, damage, or theft can be very high.

Parents are urged to ensure that the insurance cover in place covers all of these items, so that there is no financial loss in the event of a loss, theft, or damage to the items.

According to a recent survey around three in five school and college kids carry a mobile phone, and around one in five carry a handheld games console. As an increasing number of mobile gadgets comes on to the market, kids today are going to school laden with an array of expensive items making them targets for thieves. The average student now carries around £250 worth of items according to reports.

Insurance experts advise parents to contact their insurance companies and ensure that the goods carried around by their children are covered under personal possessions.

Parents may want to shop around to compare the cost of this cover, as it can vary from one provider to another. Parents should also make sure that they disclose all expensive items that their child carries to ensure that the cover provided is adequate.

Tom Smith
3rd November 2007

Tags: lost, stolen, mp3, cover, electrical, broken

Consumers can enjoy new home insurance deal from bank

One of the nation’s leading building societies, the Nationwide, has recently launched a new home insurance package that offers a number of benefits to consumers.

Home insurance is a popular and important form of insurance cover, and is designed to protect consumers from the financial losses associated with their home and their belongings. Many people claim on their home insurance each year for anything from flood damage and accidental damage to theft or loss.

According to recent reports the Nationwide is offering a special deal where consumers can enjoy substantial savings when they sign up for home and contents insurance cover as a bundle package. Although these insurance types are available as separate products most insurance companies offer s discount to consumers taking both as a bundle, which enables the consumer to enjoy increased convenience and lower premiums.

Officials from the Nationwide have stated that consumers that opt for this new home insurance cover will be able to enjoy improved customer services and well as better cover. The cover can include unlimited cover on buildings cover and cover for items in the garden.

Consumers are advised to familiarise themselves with what the policy covers before they sign up, as this will enable them to check that the cover is suited to their needs before they make a commitment.

Nationwide is so confident about this insurance product that it if offering up to £100 refund on the difference of better cover can be found for the same premium elsewhere.

The cover offered by the building society will also cover students in the family that are living in student accommodations. Customers that pay by monthly instalments will not incur fees for the privilege of paying on a monthly basis.

Tom Smith
3rd November 2007

Tags: bank, deal, Insurance, cover, home

Consumers can enjoy new home insurance deal from bank

One of the nation’s leading building societies, the Nationwide, has recently launched a new home insurance package that offers a number of benefits to consumers.

Home insurance is a popular and important form of insurance cover, and is designed to protect consumers from the financial losses associated with their home and their belongings. Many people claim on their home insurance each year for anything from flood damage and accidental damage to theft or loss.

According to recent reports the Nationwide is offering a special deal where consumers can enjoy substantial savings when they sign up for home and contents insurance cover as a bundle package. Although these insurance types are available as separate products most insurance companies offer s discount to consumers taking both as a bundle, which enables the consumer to enjoy increased convenience and lower premiums.

Officials from the Nationwide have stated that consumers that opt for this new insurance cover will be able to enjoy improved customer services and well as better cover. The cover can include unlimited cover on buildings cover and cover for items in the garden. Consumers are advised to familiarise themselves with what the policy covers before they sign up, as this will enable them to check that the cover is suited to their needs before they make a commitment.

Nationwide is so confident about this insurance product that it if offering up to £100 refund on the difference of better cover can be found for the same premium elsewhere. The cover offered by the building society will also cover students in the family that are living in student accommodations. Customers that pay by monthly instalments will not incur fees for the privilege of paying on a monthly basis.

Tom Smith
31st October 2007

Tags: nationwide, benefits, home, cover, Insurance

Consumer fail to shop around for car insurance

According to a recent survey carried out by Sainsbury’s, many consumers in the UK are failing to take the time to shop around for their car insurance, and in many cases end up paying considerably more than they have to for their vehicle insurance by going with the first quote that the get.

Sainsbury’s officials state that the cost of insuring a vehicle has been rising over the years, but an alarming number of consumers still won’t take the time to compare premiums in order to cut back on the cost of car insurance.

According to the research carried out by Sainsbury’s 20% of drivers in the UK obtained just one quote when they last bought vehicle insurance. It is advisable for consumers to obtain at least three quotes before making a decision on car insurance, as the cost of cover can vary dramatically from one insurance provider to another, and can make a big difference to drivers’ monthly instalments or total premium costs.

There are also a number of other factors that affect the cost of vehicle insurance, and some insurance professionals have been offering advice to consumers on how they can cut the cost of cover. In addition to shopping around for insurance cover, consumers can save money by opting for a smaller engine size and by cutting down on mileage.

For younger drivers the Pass Plus scheme is a good way to cut back on the cost of cover – car insurance for younger drivers has rocketed in price over recent years and can be extremely expensive, even at the more basic levels.

According to officials from Direct Line younger drivers that take the Pass Plus course after passing their initial driving test could benefit from around 35% off the cost of their insurance premiums, which could amount to a substantial sum based on the average premium for a younger make driver of £2000.

Tom Smith
25th October 2007

Tags: pass, car, cover, younger, Insurance, premium, shop around, quote, plus

Parents urged to insure kids’ belongings

Parents in the UK are being urged to insure the belongings of their children, as they head off to school and college armed with everything from their text books and pencils to their mobile phones and games consoles.

Children these days, particularly secondary school and college students, carry a range of valuable items with them, and the cost of replacement if the items get accidentally damaged, or are lost or stolen, can be extortionate.

According to recent research the value of items that the average secondary school student now carried around is about £250. Parents of secondary school and college kids are therefore being advised to make sure that their children’s more expensive belongings, such as hand held consoles and mobile phones, are insured to avoid the financial implications of loss, damage, or theft.

Research shows that around 20% of secondary school students carry a hand held games console, and around three in five have a mobile phone that they carry with them. Additional cover may be needed for items such as ipods, MP2 players, and even musical instruments, which can prove to be very costly to replace if they are accidentally damaged or stolen. Sports equipment also needs to be covered wherever possible, as this can also prove costly to replace. Parents are urged to contact their insurance companies and ask for the items to be covered under personal possessions.

There are a number of insurance companies that can offer this type of cover, and parents are advised to shop around to make sure that they get affordable cover that offers competitive prices without compromising on the level of cover provided.

Tom Smith
17th October 2007

Tags: belongings, valuable, cover, Insurance, school, kids, personal, companies, lost, claim

Who is covered by the Treasury guarantee over Northern Rock savings?

Over the past week Northern Rock has suffered huge problems after it was revealed that the bank had taken a loan from the Bank of England.

Despite assurances from the government and from Northern Rock that the company was still solvent and financially sound savers flocked to the branches of the bank for days, queuing to take out their money, with billions being withdrawn by many of its 1.5 million savers. Share prices also plummeted leaving the future looking very bleak for the bank.

Earlier this week the Treasury decided to step in, and in addition to assuring consumers that it would not have considered lending money to a company that was not financially viable and stable, it also offered guarantees to savers to try and reduce the number of people hastily withdrawing their money from the bank amidst fears that Northern Rock would go bust.

The Treasury has now elaborated on its guarantee to ensure that consumers in the UK are clear with regards to who is covered and who is not. For those covered the government has guaranteed the safety of every penny of their savings. Bank accounts that were open as at midnight on 19th September, and any accounts that were closed and are now re-opened will be guaranteed. However, new accounts opened after this time will not be under the guarantee.

Officials stated: “This guarantee covers future interest payments, movements of funds between existing accounts, and new deposits into existing accounts. Since it would otherwise be unfair to other banks and building societies, the arrangements would not cover any new accounts set up after 19 September.”

Tom Smith
17th October 2007

Tags: accounts, bank, cover, rock, northern

Life Direct: Despite whole of life safety most choose term insurance

The majority of people decide to take out term insurance rather than whole of life insurance, even though the latter offers guaranteed security.

According to a spokesperson for Life Direct, Steve Wroe, many people are unaware that nowadays whole of life insurance offers assured premiums which is why they are choosing term life insurance.

Mr Wroe said: “Life insurance is just about peace of mind and the trouble with a term policy is that one day that policy is going to stop working for you.

“You might still be living, but you might not be insurable if you try replacing it because you might be too old or you might have come down with some medical issue since you took your term policy out that prevents you getting life cover.”

He added that people who are younger often opt for term insurance whereas the older generation are more likely to choose whole of life policies for funeral expenses and to “leave a little bit of extra money”.

The Motley Fool explains that with a term policy, a payout is offered if you perish within the term specified, getting the largest sum possible.

Whereas, with whole of life insurance offers a fixed payout upon death as long as premium payments are kept up. This provides “investment for your heirs” and requires you to take a “gamble” on your life expectancy.

Tags: fixed payout, Permanent life insurance, term life insurance, term insurance, cover, policy, premium, Insurance

Make sure your kids’ belongings are insured

Parents in the UK are being urged to ensure that their children’s belongings are insured after research showed that kids today carry around an array of expensive gadgets and items when going to school or college.

This includes mobile phones, MP3 players, iPods, handheld games consoles, digital cameras, and even expensive jewellery in some cases. Industry experts state that the cost of replacing the items should they be lost, stolen, or damaged could be very high, and therefore parents should make sure that there is adequate insurance in place.

In addition to a range of expensive gadgets and jewellery, many kids also carry costly sports equipment or musical instruments to school or college, and again the cost of replacement in the event of loss, damage, or theft can be very high. Parents are urged to ensure that the insurance cover in place covers all of these items, so that there is no financial loss in the event of a loss, theft, or damage to the items.

According to a recent survey around three in five school and college kids carry a mobile phone, and around one in five carry a handheld games console. As an increasing number of mobile gadgets comes on to the market, kids today are going to school laden with an array of expensive items making them targets for thieves. The average student now carries around £250 worth of items according to reports.

Insurance experts advise parents to contact their insurance companies and ensure that the goods carried around by their children are covered under personal possessions. Parents may want to shop around to compare the cost of this cover, as it can vary from one provider to another. Parents should also make sure that they disclose all expensive items that their child carries to ensure that the cover provided is adequate.

Tom Smith
9th October 2007

Tags: companies, items, kids, personal, belongings, home

Benefit from low cost home insurance cover from Sainsbury’s

Supermarket giant Sainsbury’s recently announced changes to its credit cards that meant consumers would be able to enjoy longer interest free periods on purchases in addition to a low life of balance transfer interest rate, as well as other benefits.

The supermarket giant has now announced that it has some good news for homeowners that want to enjoy the peace of mind and security of having comprehensive home insurance cover in place without having to pay over the odds on this type of cover.

Sainsbury’s has announced a special deal that will be available for consumers that wish to purchase both buildings and contents insurance cover as a bundle package. These consumers will be able to get twelve months of cover for the cost of just nine months, saving them 25% on the cost of their premiums right away.

Furthermore, consumers that make the purchase online will be able to save a further 10% on the cost of their cover, which means that some consumers could save a whopping 35% on the cost of their cover for a year.

The offer is open to consumers that take out cover before the 27th November, and could attract many customers who are taking out cover for the first time or are due to renew their cover. As a special bonus consumers that take out this cover before 27th November will also enjoy being in with a chance to earn one million Nectar points. The cover includes protection against accidental damage, and customers are able to pay conveniently and easily by direct debit.

Officials from the company state that although insurance premiums on home and contents cover has risen recently, particularly after the flooding problems that hit the country in June, there are still affordable policies and deals available.

Tom Smith
9th October 2007

Tags: Insurance, buildings, personal, financial, contents, home, flooding

Does your critical illness policy cover breast cancer?

Every year many women in the UK take out critical illness insurance cover, and most think that this will cover them if they are diagnosed with critical illnesses such as breast cancer, which could result in them being unable to work or earn an income.

However, recent research has revealed that critical illness policies do not provide cover or protection if the policyholder is diagnosed with a specific – and common – form of breast cancer known as ‘ductal carcinoma in situ’.

According to insurance providers, this is a form of breast cancer that is usually caught in its early stages and can therefore be treated, hence cannot really be construed as critical. Insurance companies also claim that the diagnosis of this form of breast cancer is so common that it would simply cost them too much to cover this particular form of cancer. However, for those with critical illness policies, who are then diagnosed with this cancer and unable to work, this is of no help at all.

One woman explained that she was diagnosed with the cancer, which is normally treated through major surgery or a mastectomy, and ended up having to sell her home and downsize in order to pay off her debts after being unable to work and earn money. She stated that when she tried to claim on her policy she was told that this form of breast cancer was not covered, but stated that she was never told this when policy was sold to her by NatWest.

An official from NatWest stated: ‘ Unfortunately, this policyholder’s illness is not covered by her policy. The brochures which she admits she received when she first took out the policy clearly state that there are exclusions to the type of cover the policy provides. They also emphasise the importance of checking the accompanying guide to serious illness cover for more detailed definitions of the cover.’

Tom Smith
28th September 2007

Tags: cover, policy, cancer, critical, breast, natwest, Insurance, serious

Pet insurance could save you a fortune

According to a major UK pet insurance company having some form of pet insurance in place could help some pet owners to save a fortune on the cost of caring for their beloved pets over the course of their lifetime.

Britain is known to be a nation of animal lovers, and most pet owners want the best for their pets, particularly when it comes to their health. However, those with no form of insurance cover in place could face crippling costs or a heartbreaking decision if their pet is injured or falls ill and required surgery or expensive treatment.

According to the UK pet insurance specialists Petplan, a dog, with a typical lifespan of twelve years, could cost around £14,750 over its lifetime, and a cat, with a typical lifespan of sixteen years, could cost around £14,230. The insurance company goes on to state that the rising cost of veterinary consultations and treatments is why many decide to take out pet insurance cover, and for many this acts as a real life saver – literally in some cases – when their pets need surgery or treatments following accidents, injuries, and illness.

Figures indicate that there are many more claims made on pet insurance each year in the UK compared to other types of insurance cover. Around 34% of pet insurance policyholders make a claim each year compared with around 9% of other types of insurance policyholders. However, it is important for pet owners to ensure that the cover that they take out is comprehensive and will provide them with the necessary protection for their pet.

Premiums can vary based upon the type of pet, its health and medical history, and its age, so consumers are urged to shop around and check the cost of cover as well as the level of protection provided.

Tom Smith
27th September 2007

Related links:

• Insurance : Do You Care More About Your Pet Than Yourself?
• How Do Insurance Companies Work Out Premiums?

Tags: pet, Insurance, dog, accident, treatments, vet, cat, petplan, cover

Nationwide stops PPI sales

The largest building society in Britain, the Nationwide, has stopped sales of Payment Protection Insurance with its financial products, after admitting that customers were not being properly advised with regards to PPI by staff members.

Payment Protection Insurance has been at the centre of controversy for some months after it was found that customers were being pushed into purchasing this non-compulsory cover, and that the cover was often being mis-sold inappropriately so that customers ended up purchasing a costly policy that they would never be able to benefit from.

The Financial Services Authority has been running a long term investigation into the sales of Payment Protection Insurance for two years, and is in the final phase of its review and investigation. The cover is designed to assist those that cannot keep up with repayments on their financial commitments due to accidents, illness, or redundancy, and is sold with products such as credit cards, loans, and other financial products that may need protection.

However, the review revealed that in many cases sales staff were mis-selling this policies, making the customer think that they cover was compulsory, and in some cases even adding PPI without the customers’ knowledge. This has led to a real crackdown on the sales of PPI after many people ended up purchasing policies that they were either not eligible to claim benefits on or that they were not even aware that they had purchased.

A Nationwide spokesman stated that the halt in sales of PPI is a temporary one, adding: ‘We did some mystery shopping and weren’t satisfied the sales processes were as robust as they should be, so they have been halted temporarily.’

Tom Smith
27th September 2007

Tags: cover, policy, Insurance, cost, fsa, ppi, protection, payment, benefit

Annual travel cover ‘more popular’

More people are taking out annual travel insurance cover because of changing trends in holiday habits, it is claimed.

According to Halifax Travel Insurance spokesperson David Bruce, people are currently taking more short breaks rather than one long summer holiday, meaning that the flexibility provided by annual cover is becoming more popular.

Cheaper airlines are believed to be part of the reason, enabling frequent and affordable weekend breaks abroad, Mr Bruce said.

“More and more people are taking more than the traditional one summer holiday a year so it makes more sense to have annual cover,” he claimed.

However, Mr Bruce warned that should holidaymakers be required to make a claim in the event of a theft abroad, they must obtain a crime reference number or else “the claim cannot be validated”.

According to the Association of British Insurers, travel insurance policies should provide cover for consumers in the event of medical emergencies, loss or damage to personal possessions, loss or theft of money and expenses incurred due to a delay or cancelled departure.

Tags: crime, cover, flexibility, Association of British Insurers, departure

Flooding costs to affect insurance premiums

The UK has seen some of the worst rain and floods in years over the past few weeks, and for many this has resulted in severe damage to their property and huge insurance claims.

Many insurance companies have been inundated with claims following the flood damage, and millions of pounds worth of claims have had to be processed and paid out. Insurance companies have stated that the level of claims coming in has been high and the payouts have made a big dent.

The recent flooding is said to have been the worst in the UK for around sixty years, with many households devastated by the damage caused. A number of leading insurance companies are now stating that they will have to push the cost of premiums up because of the level of claims that have had to be paid out as a result of the flood damage. Both contents and buildings insurance cover is now expected to rise as a result of the situation.

One of the leading insurance companies in the UK, Norwich Union, has confirmed that its premiums will be going up. From next week those taking out cover with the insurance giant can expect to pay around 10% more than previously. All customers will be affected by this price increase and not just those that were hit by flood damage and had to therefore make a claim on their policies.

One insurance company official stated: “People are spending more on home improvements. When things go wrong they’ve got flat-screen televisions and expensive flooring. So, when the do damage, it’s costing us more.”

An official from Direct Line insurance stated: “We do recognise that premiums will rise, and that goes for all RBS brands.”

Tom Smith
19th September 2007

Tags: cost, payments, cover, flood, Insurance, premiums, increase, claim

Norwich Union tried to catch out insurance customers

One of the UK’s leading insurance companies, Norwich Union, is targeting customers that hold critical illness insurance policies in order to try and find out whether they have withheld information in the past that could in effect mean that their policies are null and void.

The insurance giant is writing to five thousand critical illness policyholders to try and find out whether they withheld information when they initially took out their critical illness cover.

This is a pilot scheme being trailed by the insurance company, and the policyholders being questioned have been selected at random. However, if the scheme does prove successful then the insurance company is looking to widen the scheme to all two million of its critical illness policyholders. Critical illness cover has already been at the centre of controversy over recent years, as statistics show that around 20% of critical illness claims from customers end up getting rejected due to either incorrect claims on diseases that are no covered, or due to lack of information from the policyholder when the insurance was first taken out.

Critical illness cover is designed to pay out a lump sum to the policyholder in the event that he or she is diagnosed with one of the critical illnesses that are specified on the policy. The policyholder gets to keep the money even in the event that he or she goes on to make a full recovery from the critical illness. However, the level of rejected claims with this sort of cover has resulted in a great deal of negative publicity for critical illness insurance cover.

Norwich Union states that the exercise is to try and update all customer information before any claim needs to be made. One official from the insurance company stated:  ‘We want to be able to clearly advise people . . . how to proceed if they believe they may have missed something off their application form. We feel this is the right approach to try to help customers prevent non-disclosure in the event of a claim.’

Tom Smith
17th September 2007

Tags: union, critical, house, home, cover

Students forgetting to take out insurance cover

It has become traditional for many students in the UK to take a year out after graduating from university to travel the world or get some work experience abroad before settling down to handle ‘real life’.

For many students this is a hugely exciting prospect, and is their first taste of freedom and independence. However, some get so carried away with their plans for taking time out abroad, that they forget about the basics – the vital protection of travel insurance cover.

Travel insurance is vital for those going abroad for any length of time, and even more so for students that are intending to spend long periods of time abroad. Without this the student could really run into problems when it comes to anything from lost and damaged belongings to medical and emergency treatment. Experts are now urging parents to ensure that their children have taken out an adequate travel insurance policy before their head off on their travels.

One official stated: ‘Most parents wouldn’t dream of allowing their child to drive a car without insurance. Yet as many as one in four gap year travellers sets off without travel insurance. Parents could be putting their home at risk because if their child suffers an illness or accident and needs hospital treatment or repatriation, the costs can run into tens of thousands of pounds.’

One student explained how travel insurance cover had helped her when she ran into problems and her belongings were taken: ‘After such a bad experience, I wouldn’t now dream of going away without travel insurance. I have also fallen off a moped in Thailand, which required hospital treatment. Thankfully, my insurance covered me.’

Tom Smith
13th September 2007

Tags: cover, vacation, Insurance, holiday, claim, accident, travel

School holidays could mean more insurance claims

With the long stretch that is known as the school summer holidays, many parents are trying to think of ways to keep their children amused for the six week break, which any parent knows is not always easy.

Many children spend a great deal of time in the house over the school summer break, and particularly in the case of younger kids this can often lead to boredom and mischief. There is also an increased risk of accidents occurring when the kids are in the house all day every day, and according to a leading insurer this tends to result in an increased number of insurance claims.

According to officials from Halifax Home Insurance 20% of all claims for accidental damage are made during the months of July and August, when the kids are off school, and are often running amok in the house. These two summer months see claims for accident damage rocket by around 23% according to the insurance company, with claims for accidents ranging from smashed windows and damaged carpets to broken equipment and more.

Officials from the Halifax have been urging parents to make sure that they have accident damage as part of their home insurance policy, and also to ensure that they have an adequate level of cover in case of costly accidents. Without this type of cover parents could find that the summer holidays turn into a far more expensive time than they ever imagined, as they will have to foot the bill for accidental damage themselves.

One Halifax Insurance spokesperson stated: “It’s particularly important at this time of year for parents to check their home insurance policies and make sure they are covered for accidental damage to the home and contents. This summer’s heavy rains show little sign of abating, meaning children may well find themselves cooped up indoors for hours on end when they want to be outside playing, so they may get restless and find mischievous ways to amuse themselves.”

Tom Smith
13th September 2007

Tags: home, cover, claim, school, accidents, damage, Insurance, holidays

Holidaymakers ‘lie on insurance claims’

A significant number of people from the UK confess that they give false information when making a holiday insurance claim.

According to research by Direct Line, 11 per cent of British holidaymakers increase the overall value of a claim.

Another five per cent admit that they have added extra items to an insurance claim. Of the 13 per cent to have made a travel cover claim, 15 per cent admit to lying.

“The telling of a ‘little white lie’ is fraud however they chose to justify it,” said Chris Price from Direct Line. “Contemplating committing fraud is a serious matter and we would urge anyone about to claim on their travel insurance not to take this lightly.”

The study revealed that jewellery was the most popular item for which to make a false claim, with 25 per cent seeking money back for such items.

A recent report from Sainsbury’s Bank showed that 8.8 million people from the UK booked a last-minute summer holiday this year – but in their haste to get away 19 per cent forgot to arrange travel insurance.

Tags: Mill, haste, Jewellery, year, travel, Chris Price, cover, value

The importance of honesty for insurance customers

Many consumers in the UK take out life insurance policies each year, and taking out this type of policy usually involves providing the insurance company with a variety of details about your health and lifestyle.

The cost of this type of insurance cover can vary depending on the company that you go through, as well as on the details that you provide to the insurance company with regards to your health and lifestyle. It is thought that a certain percentage of shoppers may miss out or change vital information in a bid to get cheaper premiums, but experts warn that this could end up being a waste of money as the information that they provide – or fail to provide – could invalidate their cover in the event that a claim needs to be made.

One independent financial adviser has warned that consumers must ensure that they provide up to date information that is accurate and honest when they are applying for life insurance to ensure that their premiums are not wasted altogether.

This includes providing accurate information on their lifestyle, such as their smoking and drinking habits and also any dangerous pastimes or hobbies that they may have. He added that if a claim is made and the insurance company discovers that important information was withheld, or that the applicant was not truthful, then the company is not obliged to make a payout despite receipt of insurance premiums.

He said: “All life insurance policies are underwritten at outset. So if you don’t partake in, say, climbing or mountaineering when you apply for your policy, but then subsequently you do, then that’s fine, nothing wrong with that. But whatever the situation is when you apply for your policy, you must be totally honest, otherwise you may invalidate your claim. The insurance company won’t pay your claim if they found out you lied to them when you filled the form in. People have got to be totally honest when they fill their applications in.”

Tom Smith
28th August 2007

Tags: life, accident, company, claim, cover, Insurance

Is international medical insurance something that you need?

Most people in the UK are well aware of the benefits of having medical insurance, and many enjoy peace of mind thanks to the protection that this type of cover provides for them and their loved ones.

However, the needs of consumers looking for medical insurance cover have changed over recent years according to some industry experts, and this has also impacted on the type of cover that medical insurance companies are now able to offer to consumers.

Recent reports suggest that more and more consumers in the UK are opting to go abroad on a long term or even a permanent basis, with many deciding to head abroad to enjoy their retirement. Some younger people decide to head off abroad to enjoy some travelling experience and even to live and work abroad for a while. Many others travel abroad on a regular basis as a result of their work or business, again often spending extended periods of time in another country.

As a result of these lifestyle changes an increasing number of medical insurance firms are now offering international cover according to recent research, enabling those that intend to live or move abroad, or spend longer periods of time abroad, to enjoy the peace of mind of having cover even when they are away from home.

One industry professional stated: “We have done research that shows that the number of internationally mobile employees will continue to grow over the next five years. Add to this an extra 2.3 million Brits who are set to retire abroad and by 2020, and one in five older people who will be living outside the UK. So, naturally the number of companies providing international medical insurance has increased.”

Tom Smith
27th August 2007

Tags: international, treatment, surgery, cost, Insurance, accident, medical

Lib Dems attack government over car insurance

The Liberal Democrats have attacked the government’s fines for those drivers who have not taken out car insurance as not going far enough.

Government figures unearthed by the party appear to show that the price of taking out the cover is on average twice as high as the fine levied for not having it.

Furthermore, of the estimated 2.1 million Britons who do not drive with the appropriate cover, just one fifth are caught by police.

Shadow transport secretary Susan Kramer said: “This demonstrates the inadequacy of fines for uninsured drivers. By fining offenders significantly less than the cost of insurance, the Government are hardly sending out the right message.

“Much more needs to be done. Unless the Government can reverse this trend all drivers will pay the price.”

The Liberal Democrats also picked out wide regional variations in the fines, which might be said to further undermine their credibility: while an average of £116 was levied in Durham, this swelled to £367 in Derby.

Tags: cover, Vehicle insurance, wide regional variations, Dems, GBP, Insurance, uninsured drivers

Amex in strong travel insurance recommendation

Holidaymakers must take out travel insurance cover to feel safe during breaks, American Express said today.

Amex advised those who shopped around for travel cover – some 52 per cent, according to their own research – to concentrate on premium levels rather than simply the price.

Director at Amex Richard Mason said: “While holidaymakers might think nothing will happen to them while they are away, travel insurance is vital for claiming on cancellations, lost cash, public liability and providing emergency medical treatment.

“It gives you added peace of mind should anything go wrong.”

The credit card company’s insurance service also said that tourists must make sure that they keep within drink-drive limits if any alcohol-related claims are to be successful.

Attention was also drawn to the fact that insurers would closely monitor the circumstances of injuries received by claimants after alcohol was consumed.

Marketing manager Joanne Field said: “This is the acid test to determine whether an insurer will pay a claim for an accident or injury when the medical staff has advised that its causes have been alcohol related.”

Tags: Director at Amex, cancellations, tourists, emergency, claim, Richard Mason, cover

Is your caravan insured for your holiday?

If you are planning to take a caravanning holiday this year, as many Brits tend to do, it is important to ensure that you have adequate insurance cover in place, state experts.

According to many industry professionals many consumers forget to insure their caravan and contents before heading off on their holidays, and although not compulsory as with car insurance, not having caravan insurance in place could cost some holiday makers a fortune in the event of unforeseen circumstances or accidents.

According to recent figures just over 25% of caravan owners have taken out adequate insurance cover, and with around two million Brits likely to be heading off on caravanning holidays over the next couple of months this reflects a serious deficit in the number of consumers that have protection for their caravans. A good caravan can be a costly investment, and without the benefit of insurance cover can end up costing the owners a fortune.

Many people with lower value caravans fail to take out cover because they may feel that it is not worth it. Reports suggest that the same goes for those that have caravans but rarely use them. However, insurance experts are warning caravan owners of the serious financial implications that can stem from lack of adequate insurance on their caravan, no matter what the age of the caravan or now much it is used.

One industry expert stated: “We were alarmed to see from our research how many people were not taking out insurance. Not only can some of the top of the range caravans set you back well over £20,000 if they are stolen, the damage you can cause to third parties can be enormous.”

Tom Smith
1st August 2007

Tags: uk, countryside, Insurance, travel, accident, cover

Private health insurance recovering

The number of private health insurance holders has risen for the first time in five years.

Last year, numbers rose by 1.5 per cent, taking the total close to the all-time peak of 2002.

On closer analysis, the figures actually show a drop of 2.2 per cent in the number of people taking out private cover for themselves, however a larger growth of 3.4 per cent in health schemes provided by companies cancelled this out and caused the increase.

The news has surprised many, given that in recent times NHS spending has increased and waiting lists have fallen.

Analyst Philip Blackburn at Laing and Buisson told the FT that the sector “has a sense of optimism” and that it “can look to the future with some confidence”.

Private health giant Bupa welcomed news of the increase today, with managing director Fergus Kee saying that the rise in demand “confirms the continued relevance and importance of private healthcare”.

A total of 7.4 million Britons now hold some form of private health insurance, 12 per cent of the population.

Tags: form, cent, optimism, demand, importance

Wedding insurance ‘worth investing in’

Wedding insurance is ‘competitively priced’ and ‘well worth investing in’, Marks & Spencer said today.

The retailer stated that insurance ought to be taken out as soon as any money towards the wedding had been spent – which could be as much as two years before the event.

The range of cover which the insurance generally offers – including everything from cancellation and contractual disputes to wedding cake damage – was cited by Marks & Spencer in its recommendation of the service.

Spokesperson Liz Neild said: “The only thing that isn’t covered is what is politely called ‘disinclination to marry’ by either the bride or groom – so [if you] change your mind it doesn’t cover you. But there’s a whole raft of other things it does cover you for.”

Ms Neild added that the retailer also offers a free stress counselling service for members of the wedding party. “Apparently one of the biggest [worries] is seating plans”, she added.

Wedding insurance is a growing part of the market, with its introduction to the high street dating only from 2002.

However, with the average wedding in the UK now costing a massive £15,244 – and with that figure rising to over £18,000 in London – financial compensation if things go wrong has become more important for the average consumer.

Tags: contractual disputes, Spokesperson Liz Neild, cover, free stress counselling, wedding cake, wedding party, party, retailer

Insurance claims expected to flood due to flooding

The recent wet weather in Britain has devastated many homeowners all around the country, causing millions of pounds worth of damage collectively and causing untold stress and inconvenience.

According to officials the level of insurance claims is set to soar as homeowners assess the level of damage that the flooding has caused. This June has been reported as the wettest on record, and many areas throughout the country have suffered huge levels of damage.

A spokesman from the Association of British Insurers: ‘These events highlight just how important insurance protection is. If you have been affected by flooding, contact your insurance company. Their priority is to deal with all claims as quickly as possible.’

The Association of British Insurers has called upon the government to increase the funding for its defenses against flooding.

In the meantime, many of those without insurance cover or with inadequate levels of cover will be suffering the financial costs of the flooding, as they will have to foot the bill for the damages caused by the weather themselves, which could costs thousands upon thousands of pounds.

Even those with insurance cover have to now go through the laborious task of assessing the damage and making a claim with their insurer, which could take time to sort out given the number of claims that are likely to be flooding in.

More unpredictable weather is expected over the next few weeks, and this means that the number of claims being made could rise, which could mean further costs to insurance companies and a higher level of claims from customers. 

Tom Smith
10th July 2007

Tags: cost, damage, home, flood, Insurance, weather, water

Cost of comprehensive car cover at its highest in two years

According to recent reports those purchasing comprehensive vehicle insurance on the direct market are having to pay the most expensive premiums for two years.

The research was carried out by Experian, and indicates that in May of this year comprehensive vehicle insurance premiums rose by nearly 8 percent compared to the same period in 2006. There are a number of factors that can affect the cost of premiums, including age, past driving convictions and claims, and the make and model of the vehicle being insured.

The research also indicates that consumers could find it cheaper to get comprehensive cover on the intermediary market rather than through the direct market.

Even policies from the intermediary market are at their highest in nearly a year for those looking for comprehensive cover, but these are still likely to be a fair amount cheaper than direct market policies, with the average cost for a comprehensive policy in May of this year coming in at £530 compared to £560 through the direct market.

The report also showed that the cost of third party, fire, and theft cover was higher in both direct and intermediary markets, and it is thought that one of the reasons for this is because this type of policy is typically taken out by younger drivers due to affordability of comprehensive cover, which pushes up the cost of premiums.

Those looking for car insurance cover in either market are advised to shop around, as the cost of cover can vary quite widely from one insurer to another. This can be done through a price comparison website as well as by searching through individual insurers online, although the latter is likely to take more time.

Tom Smith
7th July 2007

Tags: car, cost, fire, cover, prices

How Do Insurance Companies Work Out Premiums?

The winning number is…

As you wait for the insurance sales person on the other end of the phone or over the counter to come back to you with how much your insurance premium is going to be it’s rather like entering an unfortunate lottery. Quite how they work out the cost of insurance sometimes seems like anybody’s guess. Read more

Tags: premiums, level, home, charge, car, cost, accident

Government to crackdown on insurance cover from travel agents

According to a recent report the government in the UK plans to crackdown on travel insurance cover purchased from travel agents in a bid to provide consumers with higher levels of protection when they purchase this insurance.

The government has announced plans to regulate the sector, and this means that travellers could look forward to increased levels of protection when they purchase their travel cover from travel agents.

The government has announced that the Financial Services Authority will now be regulating travel insurance sold alongside holidays by travel agents. Travel agents that plan to sell this type of insurance with holidays will therefore have to make sure that it is designed to fit the needs of customers.

Customers will have to be treated fairly in line with Financial Services Authority regulations when buying these policies, and in the even that the customer of dissatisfied with an aspect of the sale of the policy he or she can go through the Financial Ombudsman Service.

Ed Balls, economic secretary to the Treasury, stated: ‘Evidence shows that companies regulated by the FSA are better at getting consumers to make an informed choice because they are better at explaining the key features and exclusions of the product and guiding the customer through the sales process.’

The crackdown results from complaints from consumers groups with regards to unsuitable and expensive policies being sold to customers in the past – a problem that this move will help to reduce. The new regulations are set to come into force in 2009, although many officials from the travel agents industry are not happy about the move.

The travel agency industry had asked for the opportunity to make changes without these new regulations being put in place, but were not granted this opportunity.

Tom Smith
4th July 2007

Tags: options, finance, holiday, cost, cover, agency, crackdown, changes

Do you have European breakdown cover?

Most motorists in Britain are well aware of what their insurance policy covers in the UK depending on the level of cover that they have, but according to recent research an alarming level have no idea that they may not be covered for driving in other European destinations.

A large number of Brits take their cars along to various European destinations each year, but only a percentage of these have actually got adequate cover that will protect them in the event of breakdowns and accidents whilst driving abroad.

The recent research was carried out by Marks and Spencer Money. The results indicated that only twenty percent of drivers were insured against breakdowns last summer when taking their vehicle to Europe, and only a third of drivers taking their vehicles to Europe were covered in the events of an accident or the theft of their vehicle. This means that the majority of people that take their vehicles to European destinations each year actually have no cover in the event of accidents, theft, or breakdowns.

According to research only ten percent of fully comprehensive motor vehicle insurance policies automatically include European cover; however, many motorists simply assume that if they have fully comprehensive cover on their car then they must be insured for driving in other European destinations – this is not the case. Drivers that intend to take their cars to Europe are warned to check with their insurer first, and to make sure that they add on the additional cover if it does not already exist.

Experts state that it does not tend to be very expensive to add this cover. One spokesperson from insuresupermarket.com stated: ‘It’s worth considering as thieves often target cars with foreign number plates. There’s also a greater risk of having an accident when you’re driving in unfamiliar places on the wrong side of the road.’

Tom Smith
4th June 2007

Tags: travel, Insurance, foreign, european, cover

You could get a better deal with annual travel insurance

According to officials from MoneyExpert buying annual travel insurance cover could work out cheaper than opting for single trip cover, although experts do warn that consumers need to carefully check the policies to see what is and isn’t covered before making any commitment.

According to researchers from MoneyExpert some annual travel insurance policies can work out cheaper than single trip policies, but consumers must check that they are adequately covered.

One MoneyExpert official stated: “Holiday makers often think that single trip cover is simple and cheap, but the truth is it’s often not best value for money. You are certainly paying for a quick fix. As with all insurance, the quality of cover will always vary so like-for-like comparisons are quite difficult to make. Nevertheless it remains the case that you can get annual travel insurance for the whole family without breaking the bank. Focusing on price alone can mean holidaymakers will be left with insurance that is not worth the price. Insurance policies are only tested when you need to make a claim. You don’t want to find out when you are making a claim that you’ve saved money at your expense.”

MoneyExpert officials have warned that although it can be cheaper to take out annual cover, consumers should take into consideration the quality of the cover as well as the price. It is important to ensure that you compare different policies, and know exactly what you are and are not covered for in order to ensure that you get proper value for money with your travel insurance policy.

According to Sean Gardner from MoneyExpert: “Average prices provide a guide as to what to look for. It is then up to holidaymakers to probe a little deeper to find the policy that suits them best.”

Tom Smith
26th May 2007

Tags: money expert, travel, value, annual, Insurance, cost, policy

Brits spend billions on conversions

British homeowners have spent over £90 billion on converting ‘dead space’ in their homes.

Research by AA Financial Services shows that 20 per cent of mortgage holders have converted attics, garages, cellars and sheds to make them liveable areas.

The main driving force for the majority of people was to increase the value of their property, with 27 per cent citing this reason.

Money appears to be a major factor when it comes to conversions, with 17 per cent of those asked saying that they would have preferred to leave the ‘dead space’ as it was but needed to room and could not afford to move.

Others though were simply keen to get the most from their property, especially as house prices continue to rise.

“Many homeowners relish turning unused or ugly areas of their homes into liveable rooms as it means more space for family and less dusty boxes and clutter,” said Janet Pell from AA Insurance.

“But it is important that you ensure you have the appropriate building regulations approval before going ahead.

“And make sure you update your home insurance cover following an extension or conversion – your three-bed cottage might suddenly become a four-bed house – and of course, you’ll have additional furniture and possessions too.”

It is worth noting however, that if your property does become a four-bedroom house, it will be subject to the new Home Information Pack regulations from August 1st.

Tags: mortgage holders, research, home insurance, conversions, possessions too."It

Am I Insured To Drive Anyone’s Car?

Confusion

Whether you have got fully comprehensive insurance and want to drive somebody else’s car or whether you have only third party insurance and want to do so, it’s a confusing mess – the simple question is, are you legal or not? Read more

Tags: cover, anyone, theft, motor, all, policy, Insurance, permission, fire

Insurance policyholders could be paying out million to compensate for fraud

According to industry professionals holders of UK insurance policies could collectively be paying out millions upon million of pounds simply to compensate for fraud levels losses.

Experts claim that policyholders could be shelling out four million pounds everyday simply to make up for the financial losses that are caused by fraudulent claims that are made to insurance companies.

The data comes from the Association of British Insurers, and the ABI states that over one and a half billion pounds is paid out by honest policyholder each year to make up for the cost of fraudulent claims made by millions of others. Around five million people have admitted to making a fraudulent insurance claim in the past. This adds an average of forty pounds a year to the cost of cover according to the Association of British Insurers.

The insurance fraud relates to different types of claims. Some people cheat their insurance company by making a valid claim but inflating the amount that they are claiming for. Others actually take out insurance cover for the sole purpose of making a fraudulent claim so that they can cash in their cover – this is known as ‘planned’ insurance fraud.

Around £8M had to be paid out in extra premiums by honest policyholders last year to make up for claims where the amount had been inflated by the claimant. Around fifty percent of fraudulent claims relate to home and contents insurance cover.

One spokesperson from the ABI stated: “These figures highlight that greater deterrents, such as criminal prosecutions, are needed to discourage fraud. This is why we are calling for police forces to be given more resources so that fraud can be treated with the seriousness it deserves.”

Tom Smith
23rd May 2007

More Information:

• What is Insurance?

Tags: Insurance, abi, increase, claims, police, fraud, home, contents, fraudulent, cover

Travel Insurance – Keep Your Holiday Protected!

Holidays aren’t exactly cheap these days. Gone are the years when you could pitch up at the English seaside and spend a couple of weeks with the kids paddling in a storm tossed grey sea at Scarborough or Blackpool. These days of sunshine abroad and quality children’s entertainments come at a price. Today, there’s no better reason to insure your holiday. Read more

Tags: overseas, accident, travel, cover, foreign, employee, Insurance

Critical illness payouts grow

The number of critical illness claims that were rejected by a leading insurer fell dramatically between 2006 and 2007.

Legal & General has revealed that the rejection rate for critical illness claims was down 19 per cent on the previous year, something the firm says is good for consumers and the industry as a whole.

The reasons behind the falling rejection rate are varied but Legal & General believes that a number of key factors have had the largest impact.

Tele-medical interviewing, which sees a nurse or underwriter speaking to the customer about their medical history, is said to have gone a long way to reducing the number of claims which are thrown out for non-disclosure.

Figures for 2006 show that claims declined for non-disclosure fell by 15 per cent, with the insurance firm paying out £92.1 million in critical illness claims in that time.

“We didn’t go into the business of critical illness to reject claims and so our latest experience is good for customers and good for the industry as a whole,” said Russell Whitworth from Legal & General. “It shows that people can have confidence in critical illness cover.

“Our claims figures demonstrate that the time and effort that we have invested in our underwriting systems to reduce non-disclosure and improve the clarity of policy definitions is paying off.”

Critical illness insurance is designed to help people financially if they are struck down with a life-changing illness or disability.

Tags: way, cent, critical illness, policy definitions, disclosure, underwriter, cover, General

Drivers will pay the price for calling

Drivers who flout the law regarding the use of handheld telephones while driving may find themselves paying for the act twice.

AA Insurance warns that offenders are likely to end up paying for the crime through their insurance policy as well as the increased fine.

As of February 27th anyone caught using their mobile phone while driving will be given a £60 penalty notice – double the current amount – and three points on their licence.

The AA says that this is likely to lead to more insurers taking their own action against offenders in a bid to protect themselves.

“While some insurers may ignore a first offence – as they may for a speeding endorsement – they are likely to significantly increase premiums for a second one,” said Janet Pell from AA Insurance.

“In addition, under the Rehabilitation of Offenders Act, the offence remains on your record for five years and insurers will take account of driving infringements over that period, even though endorsements can be removed from your driving licence after three years.”

The AA recently carried out a survey of eight insurers in which it found that half increased premiums by around 16 per cent for one speeding offence.

This number increased to seven for a second offence, while one insurer refused to offer cover.

AA Insurance is warning drivers that insurance firms are likely to adopt a similar approach to the use of mobiles while driving.

Tags: licence.the aa, Business and Economy, AA Insurance."In addition, cover, Financial economics, Insurance, half increased premiums

Making sure that you have adequate mortgage protection cover

Recent surveys carried out in the latter part of 2006 seemed to indicate that many homeowners in the UK had failed to take out adequate mortgage protection insurance, and experts warned consumers to make sure that they looked into the type and level of insurance cover that they had for their mortgages. For most people in the UK a mortgage is a long term financial commitment and property purchasing is one of the most costly and important investments that they will make, which is why protecting both is so important.

Most people don’t think about the possibility of not being able to meet repayments on the mortgage when they first take out this loan, but there are many unexpected situations that can arise, which can render is unable to keep up with repayments. For instance, sickness, accidents, and redundancy could leave us unable to earn an income for a certain period of time, which would leave most people struggling to repay the mortgage. Being diagnosed with terminal illness or a critical illness could mean that you can no longer work or earn an income. And if you were to die your family may be left struggling to meet repayments without your income to keep them going. All of these circumstances could result in the loss of your home.

There are different mortgage protection plans available on the UK market these days, and consumers should ensure that they have as comprehensive a plan as possible in place in order to enjoy full peace of mind. Mortgage life insurance is a type of cover that decreases over the term and will ensure that your mortgage is repaid in full in the event of terminal illness, critical illness, or death. Mortgage repayment protection will cover your repayments for a specified period if you are unable to work due to redundancy, sickness, or injury, giving you time to get back on your feet and start work again without worrying about your mortgage.

Tags: unemployed, home, Insurance, cover, lose, income, house, Mortgages

The Pros And Cons Of Payment Protection Insurance

Lenders are always eager to convince borrowers to protect their repayments for loans, credit cards, store cards, mortgages and other financial products. And they have a point. People in the UK are saving less and borrowing more, with a high rate of debt. Read more

Tags: payment, protection, fair, Insurance, credit, trading, Loans, claimsoft

Only quarter of Brits have adequate insurance cover against loss of income

A recent study carried out has shown the low level of insurance protection cover amongst Brits against loss of income in comparison to the reliance of British households on more than one income. According to the study almost fifty percent of households in the UK rely on more than one income in order to cover living costs, spending, and expenses. However, only a quarter of Brits seems to have adequate insurance cover to protect against the loss of their income.

The data comes from the Scottish Widows Protection Report. The information from the report showed the low level of protection amongst Brits when it comes to insuring themselves against loss of income due to situations such as illness or death. The report also showed that the majority of Brits had less than two months salary in savings to cover them in the event that they ended up losing an essential income.

According to the report: “These findings show that if a breadwinner becomes long-term ill – or dies – the average household in the UK does not even have their essential expenditure covered – let alone enough money for those little luxuries.” The report also indicated that even those with over thirty thousand pounds in savings shouldn’t get too complacent about how they would manage in the event of a loss of income: “Many people aspire to do more than just ‘survive’ a crisis – they wish to maintain their current lifestyle.”

A spokesperson from Scottish Widows stated: “The majority of the population is walking a financial high wire without a safety net. Nobody knows what is around the corner, but we have to accept that all too often illness does strike and accidents do happen. If people don’t start to take responsibility for their own financial futures then they could be left in a position where they can’t even cover the essential expenditure in their lives.”

Tags: expenditure, scottish widows, company, payment, income, employed, cover, lifestyle, Insurance

Content insurance claims due to rocket in January

Barclays Home Insurance experts have warned that the level and cost of contents insurance claims in January is likely to rocket compared to claims made over the rest of the year, following a similar trend to recent years. Barclays state that this is due to the increase in thefts and burglaries in homes over the festive period, where thieves target homes because of potential rich pickings in the way of gifts, as well as the increased likelihood of homes being empty due to homeowners being out at parties or visiting relations.

According to Barclays Insurance the number of claims during the month of January can rise by around fourteen percent, and based on last year’s figures the cost of claims could shoot up again this year. In January 2006 there was a rise of fifteen hundred pounds compared to the amount claimed throughout the rest of 2005. Barclays experts state that consumers need to take care to minimize the chances of theft.

Barclays also advise customers to ensure that they have adequate cover in place in order to protect themselves during this higher risk period.

One official stated: “The least you can do to make sure your Christmas doesn’t get spoilt by burglars, is to ensure you have sufficient cover in place as part of your home insurance policy. While your insurance won’t be able to compensate you for the distress a burglary can cause, it will allow you to replace all of your stolen items, so that your Christmas doesn’t have to end in a bitter disappointment.”

Consumers are also advised not to leave present on show, and to ensure that there is someone to look after the home in the event that they have to go out for a long period or are away visiting relations.

The Barclays spokesperson added: “Christmas should be the time of fun and happiness but it has unfortunately also become a time of year where more thefts and burglaries are occurring. Nowadays many presents are high in value but also light and portable, such as laptops, jewellery, gadgets like iPods and BlackBerrys or the latest games console – making them ideal targets for burglars. ”

Tags: christmas, claim, Insurance, home, theft

UK consumers should compare contents insurance policies

With experts advising UK consumers to ensure that they have adequate contents insurance cover over the festive period, which is when there is an increased risk of accidents, damage, and theft, Insurancewide.com has now added an additional warning – that consumers thinking of taking out cover to protect their contents should be careful when it comes to companies offering special Christmas and festive deals and discounts on cover.

According to Insurancewide.com there are a number of companies that are offering a range of offers on contents insurance cover over the coming Christmas and new year period, with some offers that include increased cover over the festive period at no extra cost, as well as Christmas discounts on contents insurance policies. Amongst the companies offering special deals on contents insurance cover over the Christmas and New Year period are American Express and Tesco.

However, Insurancewide experts have advised consumers to ensure that they look carefully at any policy before making a firm commitment, no matter how tempting the short term special offer may be. A spokesperson for the company stated that those looking to purchase contents insurance need to make sure that the policy they go for continues to benefit them after the festive period is over, making it suitable for the long term rather than just on a short term basis. This means reading the small print on policies as well as comparing the different policies and deals on offer.

James Harrison, chief executive of Insurancewide, stated: “It’s great that insurers are remaining competitive and offering their customers a chance to save money. But we urge people to pay close attention to the increase in the sum insured, to compare like with like, watch out for unexpected policy exclusions and check other insurers’ offers according to their precise needs before being lured by advertising campaigns.”

Tags: winter, cover, Insurance, tesco, deals, offers, theft

Life insurance costs can rocket if you are overweight or a smoker

Although it has long since been known that life and health insurance companies charge higher premiums to consumers that are considered a higher risk, such as those that are very overweight or those that smoke, recent data has shown just what a dramatic difference smoking and excess weight can have when it comes to increases in insurance premiums, with many insurance companies charging over fifty percent more on policies to smokers and the very overweight than on policies to non-smokers and those not overweight.

The data suggests that insurance companies are really cracking down when it comes to what they consider are high risk customers, protecting themselves against increased risk of financial losses through charging a lot more on the cost of the premiums. These insurance companies look at high risk factors such as obesity and smoking when working out a policy, and those that come under the category of obese or smokers are seen to be a higher risk because they are more likely to make a claim according to insurance companies.

A life insurance manager at Sainsbury’s stated: “Health risks associated with smoking can have a big effect on life cover costs. It is vital for those that have kicked the habit to review their policies.” However, a number of pro-smoking organizations have raised concerns about the way that insurers automatically charge more to smokers than non-smokers, stating that the risk of a smoker under forty dying is no higher than that of a non-smoker.

A recent comparison study was carried out and this showed that on average smokers were charged around fifty six percent more on these insurance policies than non-smokers. The study was carried out through sending applications from two men of the same age to a number of the UK’s top insurance companies, and seeing what the price difference was based on one being a smoker and the other a non-smoker.

Tags: accident, life, cost, health, company, cover, premium

Consumers could save money on home insurance

A number of studies carried out in relation to consumer trends with buildings and contents insurance have shown that a large percentage of consumers could save a small fortune on the cost of their insurance premiums by taking a few simple steps. A recent survey was carried out by Tesco, and the results indicated that many consumers could be paying up to twenty five percent too much on their premiums for buildings and contents cover.

In many cases consumers are failing to shop around for good deals on home insurance cover simply because they think that they have to take the insurance cover that is offered by their mortgage provider, which is not always the case. The head of insurance at Tesco stated: “Many consumers are apathetic about their home insurance or believe it is an integral part of their mortgage. Others suspect the saving made by shopping around won’t be worth the effort but that isn’t true.”

As part of a survey, around 125 consumers were asked to shop around when it came to renewing their home insurance, and out of these a quarter discovered that they were paying around seventy five pounds more than they needed to on the cost of their premiums. The other seventy five percent from the survey also discovered that they could make some form of saving on their cover simply by shopping around.

In addition to shopping around, Moneysupermarket.com has advised consumers to ensure that their home is made secure through the fitting of security locks, burglar alarms, and other security devices, as this could also help to slash the cost of insurance premiums through reduced risk. Consumers may also find that purchasing a combination package of buildings and contents cover could save them money on the overall cost of their home insurance.

Tags: security, home, contents, alarms, payments, cover, buildings, premiums, Insurance, cost

Consumers Advised To Get Home Insurance Before Christmas Arrives

With an alarming percentage of homeowners having inadequate or even no contents insurance cover to protect their worldly goods and their homes, experts are advising consumers to ensure that they get themselves sorted out with protective cover before Christmas comes around. With reports suggesting that claims on contents insurance tend to rocket over the Christmas period, consumers are being advised to ensure that they do not get caught short at a time when it seems that accidents and burglaries are most likely to occur.

According to research carried out by Zurich, a whopping ten percent of UK homeowners have no contents cover at all, which means that they are not protected in the events of theft, loss, or damage. A further twenty percent do not have adequate contents insurance based on the items that they have in their homes. The reports also suggested that fifty percent of those with contents insurance had no accidental damage cover on their policies, reducing the protection they received from having cover.

Data provided by Barclays Insurance suggested that the festive period was the time when accidental damage in the home was most likely to occur, and statistics showed that the rise in contents insurance claims tended to shoot up over this period. This is also the time of year when many homes are left empty, as people go to stay with friends and family, as well as the time of year when there are many valuables in homes, in the form of gifts and cash. These factors combined could also mean an increased risk of burglaries.

Data showed that there was a rise of over forty percent in home insurance claims after the Christmas period in 2005 compared to claims made the month before. One Barclays spokesperson stated: “Our data shows that during the Christmas party season, people are particularly likely to incur accidental damage incidents in their homes. The cost of replacing items or cleaning carpets or furniture can quickly add up. It is therefore important to add accidental damage cover to your home insurance policy.”

Tags: storm, weather, claim, Insurance, christmas, prepare, winter, premium

Is travel insurance more important than life cover?

Most Brits are well aware of the complications that can arise without the protection of life insurance cover. Nobody knows what lies around the corner, and an accident, sudden illness, or unexpected event could change everything in one fell swoop for our loved ones. Although nobody likes to dwell on the prospect of death it seems that many Brits are simply burying their heads in the sand when it comes to providing their loved ones with protection and peace of mind through life insurance cover, and a survey has revealed that an alarming percentage of Britons do not insure their lives.

A recent survey was carried out by Bright Grey, and a sample group of two thousand Brits was used in the survey in order to determine average figures relating to insurance cover. The results from the survey indicated that Britons considered life insurance cover to be the most important form of protective insurance, with thirty eight percent of those surveyed stating that they felt that it was most important to insure their lives. Home contents insurance and mortgage insurance cover were ranked next in line when it came to importance by the group surveyed.

However, despite the fact that the survey revealed the majority think that life insurance cover is the most important cover to have, it seems that Brits are more interested in protecting their travel than they are their lives. The most popular insurance cover, according to the report statistics, was home content cover, with seventy four percent of people having this type of protection. Hot on its heels was travel insurance cover, with sixty one percent taking out this type of policy.

According to the results of the survey life insurance cover came in third, with only fifty three percent enjoying the protection of this type of cover. Mortgage protection figures were also alarmingly low, with only twenty three percent having this type of cover. Bright Grey products director, Roger Edwards, stated: “This is a real worry. Less than a quarter of people protect their mortgage – over three times more people insure their home contents. And although people seem to know how important life insurance can be, many simply aren’t taking out cover.”

Tags: life, protection, cover, emergency, travel, premium, claim, policy, accident

Pet Insurance

It’s a Dog’s Life

Whether you have received a cute kitten or a puppy as a present or been out and bought one for yourself, vets bills and care of the animal are all part and parcel of being a pet owner. Insurance is there to help with the unexpected or even expected bills. Read more

Tags: family, high, premium, Insurance, cost