Some drivers wasting money on wrong insurance cover

Having vehicle insurance cover in place is a legal requirement in the UK for drivers that intend to operate a vehicle or take their own vehicle out on the road. However, the cost of vehicle insurance can be expensive, and increases in premiums have left many people struggling to afford this cover.

However, in their bid to save money on the cost of insurance cover some drivers could simply be wasting money according to a recent report. It is claimed that many people are taking out vehicle insurance cover that offers them little to no protection simply because it is the cheapest they can get. This means that they are paying out money for insurance cover, but if they need to make a claim it could turn out that they are not adequately covered.

Many of those that are taking out the cheapest car insurance even though it may not be suitable are using price comparison sites to find their cover. Price comparison sites often give consumers the impression that they are getting a very good deal on their insurance cover, when they may actually just be getting the cheapest cover without the level of cover that they need.

Officials have said that many of those that simply opt for the cheapest cover without really thinking about the level of cover that they need are taking a huge risk, as they may find themselves with real problems in the event that they have to make a claim.

Consumers who are looking for cover are advised to make sure that they compare the features and coverage levels of the plans that they are considering rather than focusing their attention on the price of the cover, as this could turn out to be a false economy that will cost them far more in the long run.

Tags: focusing, level, finance, Healthcare in the Netherlands, Financial economics, wrong insurance cover, insurance cover

Lack of mortgages and increase in buy to let investors leads to increase in private renting

Over the past few years the mortgage lending market in the UK has become increasingly subdued, and whilst the recession may now be over and the economy on its way to recovery many people are still struggling to get a mortgage loan unless they have a very sizeable deposit to put down. At the same time the number of buy to let investors is said to have increased, which means that there is a rising number of buy to let properties on the market.

A combination of these factors is said to be affecting the number of people that are in private rented accommodation, and according to recent reports the number of people that are privately renting is set to rise, as more and more private investors come on to the market, making it increasingly easy for people to get a private rent accommodation compared to social housing, which involves going onto a waiting list or bidding on properties through council websites via the Choice Based Lettings system.

A study was recently carried out by the Building and Social Housing Foundation, and the results of the study indicated that one in five households could be living in private rented accommodation by the end of the decade. The foundation believes that there is going to be a boom in the number of people that are living in private rented accommodation, and this will make up one fifth of households by the end of the decade in ten years time.

One industry official said: “This research shows significant changes are taking place in the UK housing system. More and more of us are becoming private renters – 1m households since 2005 – some of them through choice, but many because they have no other option.”

Tags: buy-to-let, finance, Renting, United Kingdom, economics, uk, Private rented sector, Financial economics

Drivers warned against munching at the wheel

Although many drivers would not think twice about eating a snack whilst driving or taking a drink of water or pop, a recent report has revealed that actions such as these could be construed as driving without due care and attention by insurance firms, and as such drivers that are caught doing this could face insurance premium increases of up to 40 percent. Read more

Tags: eating while driving, drivers, car insurance, driving safety, insurance premium increases

How much will you need to retire?

For many people retirement is something that they would rather not think about, either because they do not have the money to put towards their retirement fund in the current financial climate where households are struggling to make ends meet due to higher bills and living costs, or because they are relatively young and feel that retirement is a long way off so they can think about it later. Read more

Tags: post-career years, Impact, advisor, financial commitments, Financial economics, way, Retirement Report, life trust

Government should give ‘proper insurance’ to soldiers

Service men and women who are fighting abroad should be provided with “some kind of proper insurance” by the government, the investment director of Buckles Investment Services has said.

Richard Eling of the independent financial advisory said that people engaged in the war effort should not have to seek their own insurance cover when going abroad with the army and that the government should pay for their policies.

“It’s a bit rich to send someone to Iraq on £18,000 a year and then ask them to pay for their own insurance cover,” Mr Eling commented.

A total of 176 British soldiers have been killed since the beginning of the war in Iraq.

Mr Eling has said that many soldiers who were sent to Iraq and Afghanistan and used the private insurance company Pax have not had everything covered by their subsequent claims that they thought would be included when they bought the insurance policy.

Tags: Financial economics, effort, service, war in iraq, Richard Eling, everything, total, army

Insure your garden, says expert

With the summer months coming up and people spending more time outside, many homeowners may not realise that their sheds and gardens might be at risk of being burgled as they forget to lock them properly, an expert has advised.

According to Simon Lamble, product director at Confused.com, people tend to be less stringent with the security of their garden equipment during the summer and this leads to a ’significant’ increase in the number of shed burglaries.

Research from the company found that the average cost garden equipment is around £800, although not all home insurance policies will pay out for losses of more than £1,000.

“It is imperative that, when taking out home insurance policies, homeowners consider the contents of their sheds, garages and any other outbuildings, and insure them accordingly,” Mr Lamble commented.

Meanwhile, Tescocompare.com has found that Brits fooling around at home cause 25 per cent of damages to their houses.

Tags: shed, home insurance policies, security, insurance policies, Tescocompare

Endsleigh: We won’t pay for loss from poor workmanship

Homeowners planning any big changes to their houses should make sure they employ reliable and skilled workmen because their insurance may not cover loss or damage if the design or materials used are faulty, according to insurance provider Endsleigh.

Rhiannon Harris, a spokesperson for Endsleigh, said the company’s insurance policy would not cover loss or damage that was the result of poor workmanship or that came about from mechanical or electrical equipment breaking down or from people not following the instruction guide when using the equipment.

Ms Harris went on to say that the following would also not be covered by the company’s policy: “Emollition or structural repairs or alterations to your home or outbuildings, structural alteration, repair maintenance, decoration, restoration, dismantling, demolition, renovation or breakdown, or process of cleaning, drying, dyeing, heating, or washing.”

According to figures from Zurich, 73 per cent of homeowners do not know whether their home insurance policy provides cover for any DIY mistakes they might make.

Tags: skilled workmen, insurance policy, Business and Economy, home insurance, structural alteration, dyeing, insurance provider endsleigh.rhiannon, Financial economics

Property falls out of favour with savers

After years of seeing property prices rocket, people are finally becoming weary of putting their hard-earned cash into homes and may begin to stash money away in savings accounts instead, an expert has indicated.

Donna Bradshaw, an IFA and financial planning strategist, has said that following a period when people became used to spending, there may now be “a turn around back to saving again”.

She said that in the past, the country’s “obsession with property” has meant that many people have used their houses as “a high street bank“.

However, with the credit crunch hitting hard, Ms Bradshaw said: “I think we’re going to see a shift back to saving.”

Some people already appear to be stashing their cash away in a safe pace to earn interest, as the Building Societies Association recently reported the highest ever monthly inflow to building society cash ISAs in April, bringing the total put in societies’ savings accounts to £1.8 billion.

Tags: saving, Donna Bradshaw, building societies association, indicated.donna bradshaw, obsession

People who lie on insurance claims ‘will be found out’

People who try to make fraudulent claims on their insurance are likely to be caught out, according to a financial expert. Read more

Tags: Financial economics, Aviva Canada, financial expert, finance, insurance claims, fool, voice

Make your money work hard for you, advises expert

Newcastle Building Society has urged consumers to ensure that “their money is working as hard as possible for them”. Read more

Tags: last september, Banking, Financial economics, demand, Newcastle Building Society, Cooperatives

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.

Tags: More people, public relations, General, Types of insurance, Financial economics, cheaper car insurance premiums, trip

ID fraud insurance should offer a copy of credit files, says expert

People looking for ID fraud insurance should make sure the policy offers them a copy of their credit file, Equifax has said.

Neil Munroe, external affairs director of the company, said that if someone steals a person’s ID, they are likely to try to apply for credit in that name so a policy that provides a copy of the credit file is important.

According to CIFAS, the UK’s fraud prevention service, there were 77,500 cases of ID fraud last year.

Earlier this year, research carried out by CPP revealed that London is the worst location for credit and debt card fraud and theft.

Commenting on what people should look for when buying an ID fraud insurance policy, Mr Monroe said: “Some policies may well do more to help take over your case and sort it out for you, and these would be more valuable than ones that just offer you basic advice.”

Tags: Financial economics, credit files, london, equifax, Credit rating agencies, said.neil munroe, CPP, director of the company

More people see benefits of private medical insurance

People are increasingly recognising the benefits of private medical insurance (PMI) and more employers are starting to take out policies for their staff, says the Association of British Insurers (ABI).

According to ABI’s figures, more than six million people are now covered by either personal or corporate PMI with a further 1.14 million covered through Healthcare Trust arrangements.

Research conducted by BUPA shows that in the first quarter of 2008 sales of individual PMI policies were up by 20 per cent on the same period last year.

Private health care allows patients a quicker and higher standard of service than the NHS, according to ABI spokesperson Jonathan French.

Employers are also increasingly seeing the advantages of providing PMI for their workers, such as helping them to back to work more quickly after an illness.

“There’s also the argument [that ] in an increasingly competitive labour market, employers are using add-ons, like offering private medical insurance to ensure that they can recruit and retain the best quality staff,” added Mr French.

Tags: market, standard, competitive labour market, private health care, Business Finance, offering, Financial economics, Labour economics

Legal cover on home insurance may help avoid costly bills, claims expert

Home owners are being advised to take out legal cover on their house insurance to safeguard them in the event of a dispute with neighbours.

The Association of British Insurers (ABI) says that legal expenses can be very pricey if people get into a dispute and with research showing that a third of people have argued with their neighbours, insurance may be a sensible option.

According to a recent survey by Allianz Insurance, more than 1.1 million households have argued with their neighbours about noise and one in three of the 3,000 homeowners questioned have had a disagreement.

Kelly Ostler-Coyle, spokesperson for ABI, said: “The thing with insurance is you never know if you need it till you need it, so it’s always there to protect against the unexpected.”

If people think they would not be able to pay the legal fees in the event of a dispute, they should consider getting legal cover when they take out their home insurance policy, Ms Ostler-Coyle concluded.

Tags: home insurance, Financial economics, noise, option, British Insurers, policy, Coyle, spokesperson

ABI: Don’t just go for the cheapest home insurance

With one in three households getting into arguments with their neighbours, people should not simply choose the cheapest home insurance policy as it may not cover the legal cots of a dispute, says the Association of British Insurers (ABI).

Kelly Ostler-Coyle, spokesperson for the ABI, advises people to consider what is covered in the insurance policy rather than simply choosing one based on cost.

Ms Ostler-Coyle, says that when shopping for insurance, people should ask themselves “Does it include legal cover? Does it have all risk extension fees so you’re covered for your items when you’re outside the home and how much [in terms of] belongings am I covered for?”

Yet people often take what they believe is a good deal without taking any advice and later find their claims rejected since the insurance policy they chose does not cover issues such as disputes, says an expert.

Over a million people say they have argued with their neighbours over noise, according to a new survey from Allianz Insurance.

Tags: Financial economics, Allianz Insurance, advice, British Insurers, expert, Social Issues, abi, Business and Economy

ABI gives advice on making compensations claims easier

People wishing to protect their luggage whilst travelling should make a note of what is in their bags and keep receipts to make it easier to claim compensation, says the Association of British Insurers (ABI).

A spokesman for ABI said that people should consider whether they need to take valuable items with them and ensure that they label their property “inside and out”.

Malcolm Tarling said that while he does not expect people to “have the receipt for a pair of ten-year-old jeans, but you should keep receipts for something you bought recently, especially if you are going abroad”.

Following the recent luggage fiasco at Heathrow Airport’s Terminal 5 when at least 20,000 bags were mislaid, a number of travel insurers have decided to exclude baggage loss and delays for those flying out of Terminal 5 from new insurance policies.

The director of Go Travel Insurance Andy Taylor said that the reaction sent a message to travellers that insurers are only interested in their premiums and not their claims, reported travelbite.co.uk.

Tags: London Heathrow Airport, fiasco, spokesman, ten-year-old jeans, Go Travel Insurance, receipt, Financial economics, tarling

Consumers in debt advised to maintain important insurances

As many homeowners’ fixed-rate mortgage deals expire this year and living expenses rise, leading debt management provider EuroDebt is advising individuals to maintain their insurance policies when tightening their budgets.

More than three million home owners may be forced to make higher mortgage repayments of anywhere between £30 and £300 each month as their fixed-rate deals come to the end and a number of banks continue to up their rates.

Kevin Still, director at EuroDebt, said: “The problem is that as soon as people start falling behind on their payments they look for the easiest way out,” according to Introducer Today.

However, he advised individuals against neglecting payments on items which they do not consider a priority, such as household contents insurance, life insurance, medical insurance and critical illness and payment protection policies.

Additional financial pressures may stem from increasing living costs, including a rise in council tax charges and home fuel prices.

David Kuo, head of personal finance at Fool.co.uk, commented yesterday that he believes it will be “later rather than sooner” before credit conditions improve.

Tags: priority, number, management, David Kuo, Financial economics

‘Homeowners protected from acts of god’

Building and contents insurance can help protect homeowners from the effects of climate exchange, according to the head of risk and underwriting at esure home insurance.

Mike Pickard states that the recent earthquake and increasingly frequent extreme weather conditions can see homeowners “rely” on their home or buildings insurance policy.

The head of risk and underwriting also states that measures can also be taken to help protect homes in the event of severe weather, such as flooding.

“There is no quick fix for flood damaged properties and the destructive power of water can turn lives upside down and damage personal belongings beyond repair”, he explains. Taking precautions and being prepared for the unexpected, whenever it should strike, is crucial.”

Research released by esure also revealed today that nine in every ten adults would not by a property if it had previously been flooded.

Following the earthquake in February, esure said that “a bout of extreme weather can strike at any time and in any street across the UK with devastating effects”.

Tags: Esure, flood, god, head of risk, Financial economics, water, United States, insurance policy

Average Brit ahead of international average when saving for retirement

A new survey published today shows that the average British consumer begins planning for their retirement up to five years ahead of the international average.

According to findings from AXA, Brits start saving for their post-work future at 28 years-old, compared with workers in France and Spain who do not start planning for life post-work until they are 34.

Up to three in four (71 per cent) of working Brits have started preparing for their retirement financially, a percentage higher than the global average of 54 per cent.

Steve Folkard, head of pensions and savings policy at AXA, said: “It is encouraging to see that Brits lead the way when it comes to retirement planning but not surprising given that state benefits in the UK provide a very modest retirement income compared with many other countries.”

The research also shows that people have found alternative ways to save for the future.

New methods include opening personal pension schemes (45 per cent) and putting money aside in equities and bonds (45 per cent).

Meanwhile, the Policy Exchange has warned that the pension crisis is worse than originally feared as it faces a perfect storm.

Tags: head of pensions, Labor, modest retirement income, Financial economics, spain, Termination of employment, income, life

Storm insurance costs hitting the roof

The roofs of up to 1.5 million homes in the UK have been hit by storms in the past year, costing consumers £4.5 billion in repairs, according to insurance experts.

Research from Halifax Home Insurance shows that the average cost of repairing wind damage has risen to £2,800, which equates to 12 per cent of the average British salary.

Martyn Foulds, senior claims manager at Halifax Home Insurance, said: “Homeowners without adequate buildings insurance cover risk finding a huge hole blown in their finances by the cost of repairs.”

He added that the increasing number of incidents of extreme weather conditions, such as wind and flood, “make it more vital than ever for homeowners to take proactive steps to protect their financial and physical security before disaster strikes”.

Further findings from the firm reveal that the average affected house needs 127 tiles replacing, a figure which equates to more than 200 million across Britain.

Meanwhile a study in Germany predicts that financial losses incurred by bad weather could rise to 37 per cent in the UK.

Tags: huge hole, Financial economics, adequate buildings insurance, security, disaster strikes, halifax, storms, year

Shopping around can improve “financial fitness”

Consumers can improve their “financial fitness” by shopping around for the best deals on mortgages, credit cards and insurance, claims one financial expert.

Abbey said that there is certainly more that most consumers could do to ensure their finances could be improved and looking around for a better deal could make a big difference to the amount of money paid out.

Nici Audhlam-Gardiner, head of mortgages with the company, said: “It’s all about discipline, in the same way that you can be physically disciplined if you decide to get physically fit.”

She added that it is unlikely that someone who set up a bank account ten years ago is still receiving the best interest rate on the same deal.

Looking around for different offers can make a “big difference on your month by month basis, in terms of how much you’re earning”.

According to research conducted by ICM for Abbey, 21 per cent of people renewed their home insurance without shopping around and four per cent do not have any home insurance at all.

Tags: abbey, Financial economics, account, credit, Nici Audhlam Gardiner

Low levels of fraud with life insurance

“There are very low levels of fraud in the life insurance arena,” according to the Association of British Insurers (ABI).

Jonathan French, spokesperson for ABI, said: “Life insurance companies have a number of checks and balances in place to minimise fraud and there are very low levels of fraud in the life insurance arena.”

He added that the ABI have yet to make any official comments on the circumstances surrounding the Anne and John Darwin case, but it is “safe to say it is very unusual”.

In large scale incidents or natural disasters some insurance companies will pay out for life insurance policies even when there was neither a body nor formal death certificate.

This would occur when there was sufficient and substantial evidence for the presence of the individual in an area that was very badly affected, said Mr French.

According to research from the ABI, 40 per cent of households have life insurance. In 2006, the UK insurance industry paid out £17 million per day in death benefits.

Tags: Insurance, finance, insurance fraud, life insurance arena, Life insurance companies, Financial economics, area, Ethics

Tips offered on mortgage protection

Don’t borrow more than you can afford and seek independent advice before buying are just two of the mortgage protection tips offered by industry experts, LifeSearch.

The guidance arrives as consumer confidence has been affected by the Northern Rock crisis. Interest rates are also near a six-year high at 5.5 per cent, despite coming down last week.

Matt Morris, LifeSearch policy adviser, said: “Many people consider protecting their mortgage, but they usually select a policy that will pay it for them when they can’t work.”

He added that what they actually should be protecting is their income, which not only pays the mortgage, but also pays all the other bills and the everyday cost of living.

LifeSearch also advises consumers to check employee benefits, not to buy Mortgage Payment Protection Insurance without considering Income Protection and ultimately take some form of action.

LifeSearch is a life insurance and protection specialist which was established in 1997. It currently has over 200,000 customers and more than £13 billion worth of cover arranged.

Tags: Matt Morris, mortgage, life, Financial economics, Many people, specialist, week

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

Mortgage deals upset by credit crunch

Mortgage applications are being hit by the global credit crunch, new research has warned.

The chaos in global financial markets caused by the US sub-prime lending crisis is now unquestionably affecting ordinary people in the UK.

Brokers are reporting that 17 per cent of decisions in principle by mortgage lenders are not being honoured after the event, due to the rapidly changing conditions.

And nearly a quarter (23 per cent) of all mortgage offers being made have been affected by the credit crunch, brokers have told GE Money Home Lending.

Duncan Berry, Sales Director, GE Money Home Lending, warned: “During these challenging times there will inevitably be changes to ranges with shorter notice periods, but communication is key and lenders should endeavour to give brokers reasonable notice to alterations in product ranges and changes to pipeline dates.”

Nevertheless, brokers themselves were found to be remarkably tolerant of lenders’ behaviour.

59 per cent said that it was acceptable for deals to be withdrawn or changed at short notice.

Tags: Yield spread premium, product ranges, chaos, event, brokers reasonable notice, Financial economics, Financial crisis of 2007–2009

Wrong insurance costs Brits £750 million

Having the wrong insurance cost Britons £750 million in the last year, according to new research.

The figure is the sum total of the value of claims people who had lost cars, holidays and other possessions which they thought were insured, but which turned out not to be covered by their policies.

One million people had claims rejected, with an average value of £736, the research from Tesco Personal Finance found.

The company also found that 55 per cent of insurance buyers only skim read the terms of their policies.

Peter Dingle, managing director at TescoCompare.com, said: “It is worrying that so many of us have made mistakes in the past twelve months. With the pace of modern life, many perhaps simply do not have the time to make sure they understand what they are buying.”

Mr Dingle’s comments are borne out by other findings in the research.

Four and a half million shoppers were found to have bought an item of clothing in the last 12 months only to find out later that it was dry-clean only.

Tags: cost, life, possessions, 12 months, research, britons, Brits

Independent school loss of earnings cover ‘not comprehensive’

Loss of earnings cover provided by independent schools may prove to be “value for money”, but they are often “very basic”, an industry expert has said.

According to Steve Danson, a chartered financial planner at Elementum, the insurance would not cover sickness absence or death in some cases.

“People should definitely get a plan for their particular circumstances, and quite often the plans we would recommend would be the same types of plans we would recommend to anyone with a big commitment,” he said.

He added that many companies will sell school fees insurance as a specialist product, when in fact it is a combination of normal insurance covers.

The Independent Schools Council (ISC) recently claimed that 620,000 children are educated in around 2,500 independent schools, which represents an estimated seven per cent of the total number of British schoolchildren.

Of the ISC’s member schools, 31.43 per cent of pupils received financial support with their fees this year, valued at a total of £300 million.

Tags: combination, plan, Financial economics, number, Council

Buy-to-let lending continues to thrive

Buy-to-let mortgage lending is booming, in spite of widespread concern about the state of the market.

With the Royal Institution of Chartered Surveyors (RICS) warning that house prices are falling at their fastest rate for two years yesterday, many believe that the buy-to-let sector will contract.

However, new data published this week suggests that many investors continue to believe that buy-to-let remains a good deal.

New figures from the Council of Mortgage Lenders (CML) showed that £7.8 billion was taken out in loans under their ‘other lending’ category in August – of which buy-to-let is a major component.

The sum makes up almost 25 per cent of the £34 billion borrowed that month, and is 37 per cent up on the figure for the previous month.

The CML said: “Total lending has been buoyed by a strong buy-to-let market.

“[Other lending] covers buy-to-let which has continued to be underpinned by house price increases, tenant demand, rent increases and landlords’ willingness to take long-term investment decisions.”

In the same period, the CML’s figure showed that borrowing for new purchases fell by 11 per cent on the previous month, while remortgaging borrowing fell by 12 per cent.

Tags: week, month, short, GBP, Financial economics, buy-to-let, yesterday, cml

Pet insurance affected by location and housing

The cost of insuring a pet can be affected by where the animal is housed and what part of the country you live in.

According to insurer Allianz, there are various factors which determine the price of pet insurance premiums such as the age and breed of a pet, how much it cost to buy it, how much physical activity it takes part in and if the owner lives in an area where it is expensive to run a veterinary surgery.

Clare Wheatley, risk and underwriting manager for Allianz’s Petplan programme, noted that “the cost of setting up and running a vet practice can vary greatly across the UK”.

She added: “We take a pet’s age, breed and location into account when insuring them.

“Age is a factor because just like humans, pets are more likely to fall ill as they get older. A man or woman may develop diabetes and arthritis later in life, and so may a pet. Therefore, to cover the additional risk of insuring an older animal we charge slightly more for dogs over the age of eight (five years for some breeds) and cats over the age of ten.”

Tags: risk, Physical exercise, woman, United Kingdom, allianz

Bedroom most insurable area of the home

As new research reveals that Britons consider the bedroom the most important room in the home, experts have urged consumers to ensure their contents are properly insured.

Figures from a recent Abbey study claim that 25 per cent of domestic residents think that the bedroom is the most crucial room in the house.

And with the average bedroom containing £4,000 worth of goods, it has been argued, that the need for full cover has never been greater.

Prasad Shastri, head of insurance marketing at Abbey, said: “We spend almost one-third of our lives in our bedrooms so it makes sense that Britons are prepared to fork out to create a comfortable and relaxing space.

“Sometimes it is hard to gauge the replacement cost of the contents you have in the home, but if you think carefully about every item it quickly adds up.

“One of the simplest ways to help avoid under-insurance is to make sure that your policy has an unlimited sum insured.”

According to the research 1.26 million people claim that the bedroom contents is worth more than £10,000.

Tags: Financial economics, simplest ways, need, head of insurance marketing, Shastri

Study: Home-buying process ‘fraught with difficulties’

A new study by AA Insurance has found that prospective homeowners are increasingly wary of buying a new home.

The survey found that buying a house tops the list of daunting prospects among young people ahead of getting married or divorced and starting their own business.

Discontent stems from a range of sources, with 29 per cent saying they found the whole home-buying process difficult while one in ten harboured serious concerns about hidden faults.

Estate agents in particular do little to assuage the fears of homebuyers as 62 per cent of respondents said they did not trust them, placing them only marginally behind politicians (73 per cent) in terms of general unscrupulousness.

And even once homebuyers have taken the plunge it seems almost three in ten find they are unsatisfied with their new dwelling after moving in.

Janet Pell, head of AA Home Insurance, commented: “For most people, buying a home will be the most important purchase they make in their lifetime, so it’s really important to get it right and make sure you have no regrets once the contract is signed.”

She added: “Once you’ve found your dream home, make sure you shop around for the best deal on your mortgage, surveys and home insurance”.

Tags: buying, economics, survey, list, percentage, in.janet pell, AA Insurance, Financial economics

Gapyear travellers “don’t understand insurance”

People taking a gap year do not understand travel insurance and see taking it out as an obligation, according to one industry figure.

Tony Griffiths, the founder of gapyear.com, states that although gapyear travellers are becoming more aware of the importance of taking out insurance, they do not understand “what it is or what it does”.

Mr Griffiths also said that some travellers feed they are “indestructible”, particularly males who are aged between 18 and 24. He also added that many people have a “it won’t happen to me” attitude.

“The reality is most of the claims are for things like people falling off a curb. We had an example of someone who fell off a curb in Barcelona and broke their ankle.”

Gapyear.com is part of the Gapyear Company, which is an organisation that provides free information and advice to people considering taking a year out.

It states that 25 per cent of people on a gapyear have either no or inadequate insurance, and that the average spend of 18 to 24-year-olds while travelling is between £3,000 and £4,000.

Tags: figure, com, Financial economics, Australia, Gap, cent, advice

Property alternative investment to pensions

With many assets-rich Britons seeking out alternative investments to their pensions, industry experts yesterday suggested that property could be the way to go.

Current government breakdowns of pensioners’ income suggest that investment income stands at nine per cent.

State benefits stand for 45 per cent, with other types of pensions forming a total of 28 per cent.

The chief executive of the Pensions Advisory Service (PAS) pointed out that investing in property was advisable, because “it’s probably better not to put all [of your] eggs in one basket”.

Malcolm McLean added: “Investing in property instead of a pension is fine, as long as you have the means to do it.

“People often say they wish they had put their money into property rather than a pension, but this isn’t always an option. The rewards in property investment – in people’s minds – seem to outweigh financial rewards from pensions.”

According to latest figures from the Office for National Statistics, total numbers of pensioners in the UK stood at 8.1 million.

Tags: state, Financial economics, option, Labor, breakdowns, go.Current government breakdowns, Pension, pensions advisory service

Help for flood victims

As much of northern England and parts of Wales suffer at the hands of huge floods caused by torrential rain, Direct Line is offering homeowners information on how to make an insurance claim.

The firm has deployed hundreds of members of staff to the affected regions and help is being offered to those in need.

Flash floods have so far claimed the lives of three people and thousands of properties have been severely damaged by the water.

Rescuers say that water levels are beginning to subside but more rain is predicted for the coming weekend and residents are bracing themselves for another round of flooding.

Once the weather eventually returns to normal and people begin assessing the damage to their homes, many will begin thinking about making a claim on their insurance and that is why Direct Line has gone to the affected areas.

“Our main priority is to help people get back to normal as quickly as possible and with the least amount of inconvenience,” said Andrew Lowe, head of home insurance at the firm.

“Additional staff have been deployed to help manage the higher than average number of calls and we are prioritising those where people’s health and safety is at risk.

“However, we ask our customers to be patient with us as it is taking longer than usual to answer and deal with calls,” he added.

Customers are advised to take photographs of any damage caused and keep all damaged items. Electrical equipment and gas appliances should not be used until they have been thoroughly checked by a professional and redecorating should not take place for a number of weeks so that the property is completely dry.

Tags: Financial economics, flash floods, flood victims, patient, gas, property, health, home

Saga issues travel insurance warning

Holidaymakers who purchase their travel insurance well before they leave are more likely to successfully claim all their money back than those who do not get covered until the last minute.

According to new research, 68 per cent of people who buy their insurance well before going on holiday can claim their money back should the trip be cancelled.

This number is far lower (52 per cent) for those who purchase their insurance in the week leading up to the trip.

Saga Travel Insurance, the firm behind the research, points out ten per cent of respondents revealed that they had lost out financially in the past because something had gone wrong before they had bought insurance.

The most common causes for a trip being cancelled include a travelling companion falling ill or having an accident and family bereavements.

“This research clearly demonstrates the need to secure insurance well before you plan to travel as the cover is in force from the date it’s purchased, not just whilst you are actually away,” said Andrew Goodsell, chief executive of Saga Group.

Saga is also telling holidaymakers to make sure that they have a European Health Insurance Card (Ehic) before travelling anywhere within the EU.

It allows EU residents to get medical care in any EU country and replaces the old E111 form. However, 29 per cent of respondents were unaware that the E111 is no longer valid.

Tags: Ehic, Financial economics, Saga Travel Insurance, date, date it, trip

Home disasters for returning holidaymakers

Over one million Brits return from holiday each year to find that there home is a disaster area.

Research by Halifax Home Insurance shows that we arrive home to a combined total of £2.3 billion worth of damage and, without insurance, we could be counting the cost for years to come.

The most common problems are criminal damage, faulty utilities and storm damage. According to Halifax, a quarter of us are burgled while on holiday.

Water damage is another costly problem that affects many, with 1.7 million holidaymakers having to pay a combined bill of £960 million to repair damage done by burst pipes and the like.

“Home disasters can be extremely distressing at the best of times, so returning to one after a relaxing holiday would certainly bring you back down to earth with a bump, so having adequate home insurance cover to protect your property – whether it’s occupied or not – is absolutely critical,” said Vicky Emmott from Halifax.

“As well as making sure they are insured there are lots of other practical things that holidaymakers can do to protect their properties whilst they’re away.

“For example, ensuring that the heating comes on during the winter can prevent pipes from bursting, and cancelling regular deliveries like milk or newspapers make it less obvious to a thief that your property is vacant,” she added.

Children left alone on the house are also a common menace for holidaying Brits, with almost one million saying that they had returned to find their home damage by the kids.

Tags: insurance policy, house, milk, Vicky Emmott, Financial economics, halifax, water, adequate home insurance cover

Buy-to-let grows, so does rent

The number of people taking out a mortgage for a buy-to-let property has remained constant despite a series of interest rate rises in the last year.

Some experts had predicted that as the cost of borrowing increased, landlords would shy away from increasing the number of properties they own.

However, figures from specialist lender Paragon show that they are continuing to increase their portfolios and simply charging increased rent to cover the costs.

In the last three months alone, the average rent charged on a buy-to-let property grew by 6.5 per cent.

“The market remains buoyant for both intermediaries and lenders, with good volumes of business for both property purchase and for refinancing of existing portfolios,” said John Heron, managing director of Paragon.

“Investors are encouraged by the strength of tenant demand, which enables them to increase rents on existing tenancies when they are renewed and apply a higher rent to new tenants than they would have charged three or six months ago.”

Almost a third of landlords said that they had increased rent due to rising borrowing costs.

Tags: year, Financial economics, refinancing, strength, specialist lender, cent."The market, economics, demand

Older travellers face insurance cost hike

People looking forward to going travelling in their retirement could be in for a shock when taking out insurance.

Average premiums for travel cover increase by more than 100 per cent when people reach their 66th birthday and rise again by a similar amount when customers reach 70, according to Moneysupermarket.com.

The most competitive annual multi-trip insurance premium was found to be £35.42 for a 65-year-old person, compared to £88.64 for a 66-year-old and £171.08 for someone of 71.

Richard Mason, director of insurance for the site, said: “Anyone who dreams of seeing the world in their retirement will get a nasty shock when they reach their 66th birthday and find insurers have doubled the cost of their travel insurance.

“The situation gets even worse for travellers entering their 70s as the cost of cover leaps by almost as much again.”

Mr Mason stressed that people should be able to take advantage of fairly-priced travel insurance, whatever their age.

Tags: travellers face insurance, rise, leaps, old person, insurance policy

Car keys still being left on display

Many of us are running the risk of having our car stolen because we leave the keys on display in our homes.

Research by Saga Motor Insurance shows that one in ten are still not heeding the advice of insurers and police by failing to properly conceal our keys.

The majority keep them on a key rack which can be seen from outside the property, meaning the chances of becoming the victim of an opportunistic thief are greatly enhanced.

People aged over 50 are more diligent than those younger than them, says Saga, with 19 per cent ensuring that their keys are well hidden, compared to just 13 per cent of under 50s.

It means that people aged 49 and under are more likely to have their car stolen and be forced to make a claim on their car insurance.

“It might not be the first thing on your mind when you come home, but drivers should get into the habit of putting their keys somewhere out of sight, leaving them on display makes them an easy target for the opportunistic thief,” commented Andrew Goodsell, chief executive at Saga.

House keys are another issue, although people appear to be improving their safety procedures when it comes to this.

Saga found that nobody leaves the spare key under the doormat anymore, with 29 per cent leaving it with a friend or relative and 19 per cent keeping them locked away inside the house.

Tags: Financial economics, Business and Economy, motor, keys, nobody

Direct debit costing insurance customers millions

Millions of people are paying too much for their contents insurance because they are being charged for paying by direct debit.

New research from Abbey shows that 9.3 million of us are being forced to pay a combined total of £290 million in direct debit charges.

The firm found that of the 215 policies which are on the market, 44 per cent charge interest to customers who use direct debit.

It has been calculated that the average person is paying £31 a year more for the privilege, with some being forced to pay £55 a year.

Of greatest concern for Abbey is that many people may be completely unaware of the interest being charged, leading to a false sense of satisfaction with a provider.

“Using direct debit to buy home insurance is not a service you should be paying for,” said Prasad Shastri, head of insurance marketing at Abbey.

“There is no point using a competitively priced insurer if they then go and add to your annual bill using back-door methods.

“Customers should carefully look to avoid insurers that levy an additional fee for paying premiums over the course of the year,” he added.

If you are considering taking out any type of insurance check to see if a charge is levied for paying by direct debit and calculate if it is worth your while switching provider.

Tags: finance, Types of insurance, insurance customers, Financial economics, Direct debit costing insurance customers millions

The Benefits Of Pet Insurance

Even if your family pet started out life as a runaway stray cat, rather than a Crufts champion, vets’ bills can soon mount up into a considerable amount of money. Wouldn’t it be great then if you could find a way to be reimbursed for all of the expenses that your pet is routinely costing you each year? Read more

Tags: insurance providers, insurance premium online, Financial economics, pet insurance benefits, Human Interest, day

Update Your Home Insurance

Homeowners need to realize that keeping their insurance policy up to date is their responsibility. Any item bought or given as a gift is now inside the home, it could be an expensive painting or a crystal vase can be added to the contents insurance policy. Usually your premium will increase a little but for the price it is worth it. If any of these items are damaged or stolen, now when a claim is made, the insurance company can reimburse for the items. Read more

Tags: Many homeowners, homeowner, single item, homes causes aggravation, s market, contents insurance, update home insurance

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, Rehabilitation, AA Insurance."In addition, cover, Insurance, Financial economics, half increased premiums, Business and Economy

Travel insurance shake-up receives backing

A proposed shake-up in the way that travel insurance is sold to holidaymakers is being backed by a large majority of us.

That is according to the British Insurance Brokers’ Association (Biba), which published a survey on the subject.

Government proposals to revolutionise the market will focus on protecting consumers from travel agents who fail to explain the full details of the policies they sell.

According to the survey, 72 per cent of travel insurance customers were not advised whether terrorism cover was included in their policy.

It is situations like this that have led to widespread support for the government’s plans, with 97 per cent of those asked saying that they agree completely with the proposed crackdown.

“It is essential that consumers are fully protected,” said Biba chief executive Eric Galbraith.

“Travel insurance is vital when we jet off on our holidays and it is the role of the provider to ensure that consumers are both fully covered and understand the limits of their policies.

“Biba brokers and the rest of the regulated industry have been fulfilling this commitment for years and the government’s proposals would ensure that travel agents and tour operators fall into line,” he added.

The research also found that 56 per cent of agents failed to inform customers of how to make a complaint, while only 47 per cent of customers said that they read the small print on their policies.

If you are taking out travel insurance make sure that you take the time to read the small print and ask for clarification on anything which you are unsure of.

Tags: executive, Fashion, Financial economics, government, Eric Galbraith, revolutionise, Travel insurance shake-up, british insurance

Fraud warning not being heeded

Millions of credit card holders in the UK are leaving themselves open to fraud.

Despite continual warnings about the dangers of identity theft, many people are not heeding the advice, says Morgan Stanley Consumer Banking.

The most common mistake made by British people is failing to shred documents such as credit card statements when throwing them away.

Figures from Morgan Stanley show that 40 per cent of people fail to do this, with that number rising to 59 per cent among people under 30.

Another risk taken by many people (27 per cent) is using the same pin number for a variety of different cards and accounts, while the third most common (12 per cent) is storing pins on personal computers or laptops.

“The findings fuel concerns that Britons are not taking heed of warnings to protect themselves,” said Patrick Muir, marketing director at Morgan Stanley Consumer Banking.

“There has been a lot of attention placed on the issue of ID theft but, worryingly, many people still don’t believe it could happen to them.”

Morgan Stanley found that younger people (under thirties) are the least likely to be aware that they are the victim of ID theft as 45 per cent do not check their statements.

Tags: Stanley Consumer Banking.The, continual warnings, director, identity theft, Marketing, Caterpillar, Financial economics, cards

What is Insurance?

It’s only just begun

Let’s say you are a young person with very little money and no job. You’re driving down the road in your new car that is anything but “new” because you just picked it up from a bloke who sold it to you for three hundred quid. The engine’s rattling like a bag full of spanners and the smell of petrol inside the car is causing you a little concern. But that doesn’t matter, because you have a car, your first car. Read more

Tags: small sums, Social Issues, Financial economics, Political risk insurance, funeral expenses, Insurance Centuries, Unemployment insurance, Insurance