The fact is, nearly two-thirds of the UK population now shops for their life insurance online, with the aid of price comparison websites, and in the current tight financial climate the low life insurance quotes offered by such sites can be tempting. Moreover, by aggregating information from across the vastness of the internet, comparison sites can claim to offer a wider range of choice than your high street broker. But while this may be true, this decision isn’t always quite so straight forward, and you shouldn’t rule out the more traditional broker route as getting the ‘cheapest option’ isn’t always the right decision for your insurance needs.

When it comes to life and illness cover, it’s important that your policy is tailored to suit your requirements. Say for example, you have history of serious illness in your family you might want critical illness cover to provide financial security towards treatment and recovery. Not all life insurance policies will cover you for these eventualities, and because online price comparison sites compare quotes based on set parameters, they might not take this into consideration. An insurance broker will be able to take these specific needs into account when finding you the best quote. Plus, while online comparison sites do offer a broad range of choice, your average broker will have a big selection of trusted insurance providers to choose from.

Likewise, insurance brokers might be better placed to find specialist insurance for instances that are difficult to insure. Some providers might be less inclined to offer good premiums if you have a history of ill health for example, or likewise, if you want to get mortgage life insurance, which will pay out to your mortgage provider, securing your investment on your death, it might be hard to find the right cover to suit your home. In this instance, an insurance broker might be better placed to find you the best deal, and their personal approach means they can enter into a conversation with the providers that a faceless website will not.

That’s not to say price comparison sites don’t have their plus points. For young people, who are used to managing their personal and private lives online, they offer a quick and easy route to finding the best life insurance. And in a saturated market can help you narrow down your choices. What can prove sensible is to use the online sites to give you a few choices, and then go to a broker to discuss them in finer detail, bringing you the best of both worlds.

The most important issue here is trust. If you’re uncomfortable with the online world, the friendly face of the high street insurance broker can provide an opportunity to talk through your needs and worries. But if you’re happy online, it’s important that you make sure you read through any small print before you make your final decision. Both brokers and the biggest price comparison sites should be subject to rigorous checks by the relevant independent authority, but make sure you have your eye on the ball to ensure you make the best decision for you and your family.

Life and Illness Cover – Price Comparison Versus Insurance Brokers? is a post from: The Thrifty Scot

Industry experts have stated that because of the economic downturn and the recession the level of burglaries will have risen by around 7 percent by the end of this year, and in the next year they are set to rise by a further 2 percent.

Of course, this is worrying news for those that do not want to become victims of such crime, and it is important to take steps to protect yourself against becoming a victim of domestic burglary. There are certain things that you can do to try and make your home as burglar-proof as possible, and this includes ensuring that you have secure window locks, having a mortise lock fitted to the front door, having bolts fitted to the external doors, and having an intruder alarm fitted.

However, no matter how many precautions you take there is still a chance that you could become the victim of this sort of crime, and therefore it is also vital that you have proper home insurance in place. Although insurance cannot stop the burglary from occurring it can help to ensure that you do not have to put up with the financial consequences.

During the last recession industry experts have reported that there was a sharp increase in the number of domestic burglaries that were taking place, and it is likely that with the ongoing credit crunch and economic downturn this could happen again in the present time.

With Christmas only just over many of us have new, valuable gadgets and items in the home that we have received as gifts or that we have purchased ourselves, and this gives thieves even more reason to break in at this time of year, as they can often get away with a wide range of valuables that are practically new!

Consumers are being urged by many industry officials to check that they have up to date insurance cover in place, and to make sure that their home insurance is adequate based on the value of the items that they have within the home. You may have things like expensive jewellery, computer equipment, flat screen televisions, and other gadgets and valuable items in your home following the Christmas period, and you need to make sure that you factor these in when you update the level of cover that you have, otherwise you could suffer financial losses in the even that you do become a victim of burglary.

One insurance expert says: ‘It only takes a phone call to your insurer to make sure new items haven’t taken you over your cover limits. Many insurers will not insure you for more than £50,000 of contents unless you choose a provider offering unlimited cover. It’s a trade-off between perhaps paying a bit more for the peace of mind of an unlimited policy, or going for a budget option. But either way it pays to check your valuables are covered.’

For those that are taking out new policies as well as those that want to switch and find a cheaper provider it is important to shop around and compare the market in order to find the most suitable policy at the right price. Remember, you should avoid skimping on the level of cover that you take just to save a pound or two, as you may regret this in the long run if you have to make a claim. Make sure that you take out an adequate level of cover based on your circumstances and then try and get the best price possible for that particular level of cover.

Also, bear in mind that insurance can be complicated and there is often a lot of important stuff hidden away in the small print. You should make sure that you read all of the policy documents before you make a decision, and check on things that you are covered for as well as exclusions and restrictions. Check if accidental cover is included in your policy and if not consider adding it, as many people end up having to claim for damage that occurs through household accidents, and this can prove to be a very valuable part of the cover.

You will be able to compare different home insurance providers and policies with ease and convenience using the Internet, as many providers operate online, and many also offer generous discounts to those that take their cover online.

You could also use the various price comparison websites that operate online, and with these you simply enter your details and requirements and you can compare a list of potentially suitable policies and prices at a glance. One official says: ‘More households are feeling the pinch so it makes sense to shop around to try to save as much as possible. Comparing policies has never been easier on the internet.’

Shop around for home insurance and protect yourself against burglars without breaking the bank is a post from: The Thrifty Scot

There have been, and still are, many people that can benefit from taking this sort of cover, but industry groups have been trying to highlight the fact that there are also people that may be talked into taking out the cover even though they will never benefit from it and people that have had cover included in their finance deals without even knowing.

PPI is a form of insurance cover that is sold alongside different types of finance, such as credit cards, loans, car loans, catalogue credit, etc. The purpose of the cover is to cover repayments for the policyholder for a set period of time in the event that the policyholder cannot make repayments on the debt due to sickness, accident, or redundancy.

However, whilst the cover sounds good in theory there have been many people that have paid a lot for this protection without realizing that they cannot ever claim on it, and many others that have been talked into taking out the cover even thought they didn’t want it. This is something that campaigners and various groups have been trying to put an end to, and even the Financial Services Authority, the UK’s financial regulator, has become heavily involved in the crackdown on PPI, having levied heavy fines on a number of lenders that have been found to be mis-selling this cover.

PPI cover is available from independent providers, and has also been sold by lenders such as banks, which earn a healthy commission from PPI sales, which goes some way towards explaining the hard sell tactic that many have used over the years. Whilst consumers that do want to take out this cover can in theory shop around to get the best price – as it can be quite a costly form of cover – some lenders have made out that the cover has to be taken from them along with the finance, which is not the case. In fact, there have been numerous problems and mis-selling tactics that have been tied to PPI sales, and this is why campaigners have been working tirelessly to try and rectify the situation.

It appears that the years of campaigning, however, may be at last having some desired effect, according to a recent report. The reports claim that a number of major banks have now decided that they will stop selling PPI alongside their unsecured loans, which means that consumers will no longer have to worry about being pushed into taking cover, and if they want to take out cover they can comfortably make their own choice from a selection of providers without feeling pressured to take it from a particular provider. Even the Competition Commission has threatened to stop the sale of PPI with loans and credit in the past, reflecting just how serious mis-selling was becoming, so the decision to stop these sales by the participating banks comes as good news.

There are five major banks that have said that they will stop selling PPI with their unsecured loans, and these are Alliance & Leicester, Barclays, the Co-operative Bank, Lloyds Banking Group, including HBOS, and RBS, which owns Natwest. These banks will still offer regular premium PPI, which is a regular monthly charge to cover repayments on a loan or credit card. However, previously the PPI sold was single premium PPI, where the cost of the cover was taken as a lump sum, added to the finance, and then had interest charged on it along with the rest of the finance, resulting in the cost of the cover soaring.

Officials do urge consumers to remember that PPI is not necessarily a bad thing, although there are rising concerns over the costs associated with the single premium PPI cover that is added onto finance thus attracting high interest payments. In the current financial climate, where there is a lot of uncertainty over job security, many people may find that this cover offers them peace of mind when they take out any form of finance, but it is vital to shop around and check prices from different providers. One useful thing to remember is that the FSA offers a guide for those looking for PPI, and enables consumers to find the most suitable cover from a list of providers based on their needs.

Are we getting somewhere with the fight against PPI mis-selling? is a post from: The Thrifty Scot

Since many consumers regularly use such Internet sites in order to find more competitive insurance policies that will help them save money, this leads to a lot of business for insurance companies.

Many of such online sites have been set up for the express purpose of making money for the website owner in the revenue earned through Google ads and affiliate marketing. The financial watchdog service of Financial Service Authority has found that only a few of these sites contain the comprehensive information that consumers need when shopping for affordable insurance. The review was prompted by the many sites that do exist for UK residents and to date seventeen of these sites have been evaluated for the accuracy of information.

Just as it is important to read the fine print on any documents before you sign them, it is also necessary to read the fine print on insurance comparison websites. The terms and conditions section of a website is one that is often overlooked by insurance shoppers, but it is here that you will find essential information related to the site.

The most commonly overlooked information is that the quotes provided in the comparisons are based on assumption rather than fact and that in order to receive an actual quote, one must contact the insurance provider directly. Thus the sites are perfectly legal and are not doing anything wrong as long as they have such statements somewhere on the site.

The reason that the FSA decided to conduct its review of insurance comparison websites arose from the need to ensure that there was fairness and consistency in the insurance industry. The work it has undertaken this year is different from that of previous years in which they were unable to take action against any of the websites. Instead the jurisdiction only allowed them to monitor such sites and follow the progress. It is only since the broad expansion of the online insurance industry that issues have arisen that demand attention and the need to bring these issues to the public.

The issues that came to light in this review included incorrect excess levels (the amount a person has to pay for an accident), incorrect compulsory levels of insurance and inaccurate pricing. The majority of consumers who have shopped on these sites and then compared the quotes they received to actual price complained about the discrepancy in the two prices to the British Insurance Brokers Insurance Association, which conducted its own review and found similar issues as the report published by the FSA. The data specialist Defaqto reports that of all ten insurance comparison sites it reviewed there is no one insurance provider mentioned on all ten sites.

Officials in the insurance industry welcome this review so that it can bring clarity to some of the issues noted by the consumer. The quotes offered are often very complex and have features that one consumer may be looking for but which is of no interest to another. There can be as many as 25 policy features included in one quote. The report uses the example of adding another car to the policy, which may not be of any use to some consumers, but is included in the quote they receive through the comparisons.

Another criticism of insurance comparison sites is that they do not point out the best buy for a consumer which means that consumers are still forced to sieve through all the quotes to find the most affordable one for their needs. Several sites have offered statements in their own defence as to how they do the comparisons for interested shoppers by saying that they do not have allegiance to one company and leave it up to the customers to make up their own mind about which policy to purchase.

The FSA has issued a warning for insurance comparison sites that they have to start providing current information about policies and prices. Experts have also noted that this sector of the insurance industry does need time to make the necessary changes recommended as a result of the report of the FSA. The BIBA is hoping that these sites will start cleaning up their act and stop the poor practices they have followed in the past.

This association wants the proper controls put in place so that this sector of insurance buying will operate in the manner in which it is supposed to for consumers. Since the FSA says that the websites must comply with the recommendations or be forced to do so, there is no doubt that changes will be noticed in the very near future.

Beware of Using Sites Offering Insurance Comparisons is a post from: The Thrifty Scot

Quotes for insurance cover are free and do not place you under any obligation to purchase the policy. When you shop online you also have access to insurance companies that you may not even know exist because they do not have a visible presence in your local area. Experts recommend that you should request at least three of these quotes so that you can compare rates and get the best deal. When you enter your address on the insurer’s website, if the company is not permitted to operate in your area, you will not be able to advance any further.

Before you can request a free quote, you do need to provide the insurance provider with some basic information. This includes:

• the material used in the construction of the foundation, walls and roof
• whether or not you have any built-in features, such as a dishwasher
• whether or not you have any safety features, such as dead bolts, installed
• the source of heat for your home
• the amount of coverage you need for your home and your belongings

These are the factors used to determine the cost of your insurance to give you a quote. In order to determine the amount of coverage you need, you should check the home prices in your area to see what your home may be worth. You can also check with a builder to find out what it would cost to rebuild should your home be completely destroyed. This amount is what the insurance would pay you for such a purpose.

Another part of the coverage is that of your personal belongings. In most policies, this amount is equal to half that of the coverage on the house itself. For tenants, there is tenant insurance, which is coverage on the contents of the home alone. To determine how much coverage you need, you should take the time to make an inventory of all your furniture, electronics, clothing and expensive antiques, furs, artwork or jewellery. Assign a dollar value to each item to reach a total of what you will need to replace these items. This will really come in handy if you suffer a total loss because the insurance company will need such a list and in times of trauma it is likely that you will omit something important.

Once you do select the policy that is most affordable for you, then you can purchase the policy. The actual cost may be different from the quote because then the provider does delve into other issues that affect the price of the policy. The company will want to know about previous insurance and whether or not you made any claims on the policy. Your credit rating can also have a negative effect on the price you have to pay. If at this time the cost rises beyond what you can afford, you can opt to go with a different insurance company or choose lower amounts of coverage.

Each insurance policy, whether it is a homeowner policy or a tenant’s package, will spell out specific coverages for which the insurance will pay. These are usually fire, lightning, wind and hail. If you live in an area that is prone to flooding, flood insurance costs extra in a policy and some insurance companies do not even offer it.

If you don’t have any safety features installed in your home, such as smoke detectors, fire extinguishers or locks on the windows, you will also pay a higher price. Since these devices do not cost a lot of money, you should consider installing them to save money on your policy. Although it will add to your expenses this year, the savings on insurance will continue year after year and will give you back more in savings than you spend.

Insurance policies also have a deductible. This is the amount of money you are responsible for paying before the insurance policy kicks in. If you can afford to pay a higher amount of deductible, then the price of the policy will also be lower. Another factor you have to consider in home or tenant insurance is liability protection. You should have the highest level of this protection as possible because it will cover you in the event that someone is injured on your property and sues you for damages. Not having this protection could cause financial ruin if you have to pay the medical expenses for someone who does sustain serious injuries.

How to Get the Best Home Insurance Policy is a post from: The Thrifty Scot

During Christmas and New Year’s burglars know that many people are out visiting in the evening hours or may have travelled to some other location to spend the holidays with family. You may feel confident that your burglar alarm will deter criminals from entering your home and stealing your precious belongings.

All kinds of accidents could keep these devices from working properly, such as a power outage, especially with the drain that the many Christmas lights places on the electrical systems at this time of the year. In spite of having locks on all the doors and windows, if a thief is determined to get into your home, he/she will be able to find a way of doing so. Some people leave the lights on at night to give the appearance of being home, but if there is no car in the driveway for a number of days, thieves will know that this is a bluff.

Christmas is a lucrative time for thieves because all the gifts are laying beneath the Christmas tree and they do not have to spend time searching the home for valuables. Even prior to Christmas, burglars can make off with the gifts you have purchased to give to others. Most people wrap their gifts and leave them in one central location or even if the gifts are unwrapped they usually have them all in the same room so that they have all the gifts in one place for when they start wrapping. Thus the thieves can take less time in the theft and still get away with the loot in a very short period of time. New Year’s Eve is one night of the year when most people are out late partying and ringing in the New Year. This gives thieves plenty of time to ransack your home and make off with not only the expensive Christmas gifts but other valuable items, such as electronics and jewellery.

In order to protect yourself, your home and your belongings, you not only need to have adequate locks on the doors and an alarm system, but you also need to have adequate insurance policies in place to cover such losses. Most homeowners take out insurance cover when they purchase a home and never bother to update it. Then when damage of this nature occurs, they are dismayed to find that some of the stolen items are not covered under the terms of the existing policy. Whenever you make a large purchase for your home or acquire expensive jewellery or artwork, you should contact your insurance provider to make sure that it is covered under the policy. In some cases, you may have to have additional insurance on certain items, such as furs, artwork or antiques.

There is also increased danger of incurring damage to your home or property. During the Christmas season, you will likely host a party or two in which you have many guests in your home. This is the time of the year when people do more entertaining than at other times. Having people in your home puts you at risk of one of these guests taking a liking to something that you have and putting it in his/her pocket.

It also increases the potential for damage to the home, such as accidentally spilling wine on the carpeting or upholstery or causing damage to the walls or furniture. The likelihood of this occurring is small when you have a small intimate gathering of friends, but it is possible. If you have teenage children, while you are out with friends, they may decide to invite friends over for a party. Sometimes, such a party can get out of hand with young people showing up that are not invited and they can steal or cause damage to your property. Having appropriate insurance cover in place will assure that you can recoup your losses in the insurance settlement or have the repairs done under the terms of the insurance policy.

Insurance providers do have an online presence where you can shop around to find the best policy prices with the coverage that you need for all types of accidents. Once you do take out a policy it is important to read the policy, including the fine print to make sure that it meets your insurance needs.

Protect Your Home during High Risk Periods is a post from: The Thrifty Scot

As a tenant you may not need to buy buildings cover but it is still important to ensure that you have contents cover in place, as the items in the property are yours and therefore you need to protect them in case of damage or theft. When you arrange home insurance you can buy contents cover without having to purchase buildings cover, and you can get some very competitive deals on this type of cover.

When you arrange contents cover you need to determine what level of cover you need, and this will depend on the type and value of the items that you have in your home. Make sure that you are truthful about the value of the items in the property, and if you have expensive items such as computer equipment, jewellery, or other valuable items make sure that you tell the insurance firm to make sure that you are fully covered to an adequate level.

You will find that it is often cheaper to get your contents insurance arranged via the Internet, as many insurance providers offer discounted deals to online customers. In addition to this you can use the various price comparison sites that deal with insurance services to find some of the lower cost deals to meet your needs, although you should bear in mind that these only cover a percentage of the market, so it may be worth checking two or three comparison sites to look at different deals.

Always make sure that you read the terms and small print of the contents insurance policy so that you are clear about what is and is not covered. For example, you may not have accidental damage as part of the policy automatically, so you may want to add this on as an optional extra.

You do need to consider the cost of the cover, but you also need to ensure that you have adequate cover, so make sure that you don’t give up valuable benefits for the sake of saving a pound or two each month, as this could prove costly in the long run if you do have to make a claim.

The cost of premiums for your contents cover will depend on a range of factors, and this includes any past claims, the value of belongings in your home and the amount of cover you take, your postcode or area of residence, and the insurance firm that you go through.

Insuring your belongings as a tenant is a post from: The Thrifty Scot

This is usually at a very low cost and you can have it added to the cost of your flight. You can also contact your regular insurance company and purchase travel insurance, but this may mean you have to buy the insurance for a year. Unless you plan to travel a lot during the year, this may not be the cheapest option.

If you plan to hire a car when you arrive at your destination, you can save money by purchasing this insurance before you leave home. Then you won’t incur the extra cost per day that the car hire agency will require you to pay if you don’t have such insurance on your own.

Such travel insurance is available on an annual basis at a very low cost, often as little as £50 for car hire in Europe and £110 for car hire in North America.

For those wishing to travel outside the UK, a European Health card, available at most post offices, will provide you with free health care when on holiday in the countries of Europe as well as Iceland, Norway, Liechtenstein and Switzerland.

When you own your own home, your home insurance policy will often have clasues that will provide cover for many of your personal belongings that you need to take with you when you travel. If you already have this insurance in place, you don’t need to purchase additional travel insurance in the event that you lose these belongings or if they are stolen.

If you frequently travel to other countries, you can save money by purchasing an annual policy from an insurance company that specializes in travel insurance. The policies are available as single or family policies and are relatively inexpensive. When you decide to take this route, the cheapest is not always the best policy, You need to have an inclusion for lost or stolen baggage that is for more than £500. Any less than this is not worth bothering with.

Online travel insurance policies tend to be a lot cheaper than those available from companies and banks. In addition, when you search online you have many more companies and policies to choose from. You can sit back in your armchair and compare the various rates on your own time to see which one best suits your needs.

One thing you do need to have included in such a policy is cancellation cover. This will pay for the cost of your flights should you have to cancel because you become ill or you have an emergency in your family that means you are unable to travel at this time.

Those who are older and have medical problems are likely to have to pay more for travel insurance. It is important that you disclose any per-existing medical conditions because failure to do so will mean cancellation of your policy.

Saving Money on the Cost of Travel Insurance is a post from: The Thrifty Scot

The make and model of your car is also a factor, which doesn’t mean the bigger the car, the higher your insurance premiums will be. Some late model compact cars are often more expensive when it comes to insurance than others. New drivers are also charged a higher insurance rate than those with years of driving experience.

Shop around for quotes on your car insurance. You can easily do this online by entering your information and requesting a free quote from the online insurance companies, which may or may not include the company with which you have your current policy. The costs of cover can vary widely between providers. By taking an hour of your time, you can compare the various online providers, their costs and the types of discounts they offer.

Many people do not even realize that insurance providers do offer various types of discounts for car insurance. If you do not use your car to drive to work, then this will put you in a lower risk category because it means that you are not on the highway in peak traffic times and are therefore at a lower risk of having an accident. You also get a discount if you have not had any traffic mishaps or claims on your insurance policy in the past. Other discounts for which you may qualify include:

• Age discount – many providers have a discount for drivers over a certain age, usually 55

• Professional organizations – some providers will offer you a discount if you’re a member of a professional organization

• Combined coverage – if you insure more than one vehicle with the same insurance company, this will lower your overall premiums

• Safety Features – if you have safety features, such as seat belts, installed in your vehicle, this will decrease your costs

• Higher Excess – if you choose a higher excess level, which is the amount of money you have to pay to have your car repaired, you assume a higher level of risk and therefore qualify for a lower rate.

The cheapest insurance may not necessarily be the best one for you. When shopping around for car insurance, you should never look at only the price. You do have to know the details of the policy to find what one is best for you. For example, if you do most of your driving over gravel roads where there is a likelihood of having your windows broken from rocks flying from the wheels of other vehicles, then you should make sure you have glass coverage as part of your policy.

The level of cover is also important in choosing a car insurance policy. If you have a new car or a car on which you are making monthly payments, then you will need to have full coverage. In most cases, the lender requires that you have this cover. On older model cars that are not worth a lot of money, you can have a policy that covers the costs of repairing the other vehicle, should the accident be your fault.

New drivers can also save money on the high costs of car insurance. If you have recently passed the test for your driver’s license, then you can take the pass plus test to shave about 35% off the cost of your insurance policy.

Even before you purchase a new vehicle, you can evaluate how much it will cost you to insure it. All you have to do for this is to ask your insurance provider to give you a quote on the insurance costs of several vehicles that you are interested in. This will help you compare not only the cost of the insurance, but the overall cost of the vehicle as well.

If you have the money available to pay the cost of the insurance premiums in full when you take out the policy, you will also save money. When you opt for monthly payments and spread the insurance over a year, you also have to pay finance charges for this privilege.

If you do not have the cash to pay the premiums in full, when you shop around for car insurance cover prices, you should also inquire about the finance charges the company adds to the total price. Even cutting down the period of time can save you money when you pay off the insurance in less than a year.

How to Save Money On Your Car Insurance is a post from: The Thrifty Scot

This is where home insurance comes into play, and the purpose of home insurance is to provide financial protection in the event that your home or belongings are damaged or your home is burgled or vandalised.

There are two facets to home insurance, and this includes buildings cover and contents cover. As the names suggest, buildings cover is to provide cover against damage to the actual building, and contents cover provides cover for the belongings within the home.

If you own your own home you will usually need to take out both buildings and contents cover, and you can take these separately, although you will probably get a far better deal taking them as a bundle from the same provider.

If you are renting your home, however, the buildings cover should be arranged by the landlord, and therefore you only need to take out contents cover to protect your belongings within the property.

The cost of cover for home insurance can vary widely, and therefore it is important to compare different policies and providers to get the best deal. However, it is not only the price that you need to consider. You should also look at the small print and check the restrictions and exclusions, as there can be many with this type of cover.

Also, check and see whether accidental damage cover is included or whether it is an optional extra, as it is important to take out this cover but if it is not automatically included the policy may not offer as much value for money as you initially thought.

When you are looking for a quote for your home insurance there are a number of things that can affect how much you will need to pay. This includes your claims history on any past home insurance, the area in which you live, the type and size of your property, the value of items within your property, and the amount of excess that you wish to pay in the event of a claim.

When it comes to the value of items within your property it is important to be honest and make sure that you provide details of any very expensive belongings, such as jewellery or gadgets to ensure that they are covered.

One way of getting a good deal on home insurance without going to too much trouble is to go online and look at price comparison sites, as these sites often cover a large chunk of the market and you can quickly find a competitive deal on your home insurance cover.

However, before you commit do check the policy and make sure that it suits your needs rather than focusing on just your budget, as it is pointless paying just a few pounds less for a policy that offers very few benefits.

The best way to insure your home is a post from: The Thrifty Scot