Insurance Top Tips

Travel Insurance

As well as purchasing travel insurance you should obtain an EHIC card (European Health Insurance Card) which replaces the E111 form. Forms can be obtained from the Post Office, or you can apply over the phone or the website. It may save you money as certain treatments are provided free of charge, which means you will not have to make a claim and pay any excess that may be applicable on your travel insurance.
Be honest about any existing medical conditions. If you need to claim and you haven’t disclosed everything, your cover may be void.
Take your policy documents with you, but leave a photocopy at home.
Read your policy before travelling. Make sure you know what telephone number to call in case of an emergency and also what activities are covered – there’s no need for winter sports cover if you’re sunbathing for a week.

To insure your car for any driver is an expensive option, as open driving attracts an increased premium to reflect the increased risk. If you can name all the drivers of the vehicle, the insurance premium will be reduced. The exclusion of young drivers under 25 years of age will produce considerable further savings.

Many insurers now offer a reduced premium if more than one person is insured on a vehicle.

Most insurers will give worthwhile discounts to low mileage users to reflect the lower exposure risk (i.e. the likelihood of a claim occurring reduces in proportion to the number of miles driven). These discounts are usually aimed at drivers who cover less than 8,000 miles per annum. The lower the annual mileage, the bigger the discount is likely to be.

If you have earned a full no claims bonus (usually 4 or more years claim free) you can chose to protect your bonus against its loss following an accident or claim – irrespective of fault. In monetary terms, your no claims bonus is the most significant single factor which helps reduce your premium. Therefore it is recommended that you consider spending a few extra pounds and protect your bonus in this way. It could save you many hundreds of pounds in the future if you ever had to make a claim. Please be aware that a ‘no claims’ bonus is not a ‘no blame’ bonus and is at risk unless protected. For example: if your vehicle was parked and then damaged by an unknown third party, your insurers would be unable to recover the claim’s costs and your no claims bonus would be affected unless protected. This situation can affect even the most careful of drivers.

Look for an insurer that will automatically provide a courtesy car following a claim as part of standard policy cover. Many insurers charge extra for this cover.

If you are likely to drive to Europe for a holiday or a shopping trip, choose an insurer that automatically covers you abroad at no extra cost. Many insurers don’t cover you automatically and there can be a significant cost for just a one-off trip.

In recognition of vehicle security, insurers will allow a discount if you are able to garage your vehicle overnight. Even off-road parking is preferable to leaving your vehicle on the road at night, and your premium will benefit accordingly.

A recognised car security system or ‘Tracker’ device will help reduce your premium and in many instances is an essential requirement when insuring a performance or a high grouped vehicle.

Consider a voluntary excess in addition to any standard policy excess (usually £100) when choosing comprehensive cover. The higher the excess, the bigger the reduction in premium will be.

A young driver (under 25) who has just passed the driving test should consider taking the ‘Pass Plus’ exam with DVLA. This will include a test of driving skills not included in the standard driving test - for example, motorway and night-time driving. By passing Pass Plus, the first year’s premium may be significantly reduced.

It may sound obvious, but make sure that you are covered for the full replacement cost of your home contents and personal effects. For example, have you thought about the cost of replacing all of your clothes as well as jewellery and more expensive items? The best way to assess how much contents cover you need is to carry out a room by room inventory.
Make sure your buildings insurance covers you for the rebuilding cost of the property only, and not the resale value. The rebuild figure will be less and could therefore lower your premiums.
Combining both buildings and contents insurance with the same insurer could give you a saving on your premium. In addition, if you then make a claim which affects both (e.g. in the case of fire or flood) you’ll only pay one excess.