Car insurance, home insurance, home or travel insurance – just how can you choose where to buy? How do we know who to trust? Many of us are led astray by insurance myths which appear to make perfect sense and yet can lead to us spending far more money that is necessary. We may pay for cover we don't really need – or perhaps be left uncovered should the worst happen. So here are 5 points to bear in mind when buying insurance – and especially so when shopping on line (don't do it!)
Insurers reward loyalty
Actually, they don't! Instead they reserve their most competitive deals for new customers and rely on existing customer being too lazy to compare rates and cover. Don't ever agree to a new premium unless you shop around first. Try Westhill Insurance Services – being independent they can shop around for you effectively and find the best tailored deal for your needs to suit your budget.
Even if you then still choose to stay with your current insurer you can still ask them to match the best deal you have received elsewhere. If the company refuses, well you are better off without them!
You don't need travel insurance if you have an EHIC card
The free European Health Insurance Card (EHIC) entitles the holder to medical treatment in state run hospitals in any EU country (plus Iceland, Norway, Leichenstein and Switzerland) at the same as local costs – which usually means it is free. Every traveller to Europe should therefore obtain a card and carry it with them – especially as some insurers will reject medical claims made by those without one.
However, the card should NOT be viewed as an alternative for travel insurance which covers costs incurred if EHIC treatment is not free - plus private hospital treatment as well as cancellation, baggage loss, theft and more.
Third party car cover is cheaper than fully comprehensive
This seems logical – after all it offers the holder significantly less protection. Not always – with younger drivers in particular whom often find fully comprehensive is the cheaper option! The main reason for this is that insurers have noticed that motorists with riskier profiles often tend to opt for third party policies and have reacted to this perceived increase in risk by hiking the cost.
You can claim for any single item worth up to the overall policy limit
Home and travel policies generally stipulate a single item limit that will apply to any claim made. If, for example you own a beautiful watch worth several thousand pounds, you may well find that your home contents insurer will refuse to pay out the full value should it be damaged or stolen. You may need to list more expensive items – talk to your insurers. When it comes to travel insurance, you should also check the baggage section of the policy to ensure that the single item limit is sufficient to pay out the full value if it is lost or stolen.
It's fine to insure your car in your parents' name
Insurers often charge young drivers amazingly high premiums. Consequently many youngsters insure their cars in their parents' name and add themselves as named drivers – this practice is known as 'fronting' – to keep down costs. This is actually illegal and will invalidate the insurance policy so any claims made can be rejected. Don't do it!
Fairy tales or fibs – don't be caught out!
You need solid, professional advice. Call the team at Westhill Insurance Services and let them dispel the insurance myths. Their guidance will mean you have the correct level of insurance and meet your legal responsibilities. Don't fall foul of the fairy-tale brigade, get the right advice and know you are safe and sound – neither your insurers or the police will be impressed if you try to turn myth into reality, so talk to those in know!
Contact Westhill Insurance Services, today.