Most insurance is not compulsory. It’s up to you to decide what you may need cover for and you may want to get financial advice to help you do this.
Based on your answers to the checklist and bearing in mind what cover you have already, consider what kinds of insurance are important to you.
- But first – if you’ve already got some cover, check:
– that it covers you for what you think it should – check the exclusions in the policy summary and make sure you’ve included any important information;
– the level of what is covered and tell the insurance company if your circumstances have changed, such as whether you’ve moved or you want to increase (or decrease) your cover; and
– whether it covers you for more than you bought it for – home contents insurance may cover you for losing credit cards while away from home or legal expenses cover may pay towards certain home-related legal disputes.
- Once you’ve decided that you want to buy insurance, get a few quotes from different companies. Make sure you compare like with like and don’t buy on price alone – check what it covers and what’s left out (the exclusions). If using comparison websites, bear in mind that none of these cover the entire market, and some larger insurers are not represented on any of the websites. Also, some websites may ask you fewer questions in order to speed up the process and instead will make a number of assumptions about you, so you must make sure that you check these are correct and update them where necessary.
- Use the key policy information that companies will send you to shop around and compare policies’ features and costs as well as the service you get from the insurance broker.
- Get financial advice if necessary. You can usually find mortgage, insurance or investment advisers on your high street, or your family or friends might recommend one. There are also a number of organisations that can give you a shortlist of financial advisers in your area.
- Use a regulated firm. Firms that give financial advice have to be regulated by us, or be the agent of a regulated firm. They are then placed on our Register and have to continue to meet certain standards. Always make sure that the firm you use is on our Register and is allowed to give financial advice before handing over your money. If they aren’t regulated by us and things go wrong, you won’t have access to complaints and compensation procedures. Check that the firm is on FSA Register.
- Always ask questions if you’re not sure about anything – you could start with these:
– What will the policy cover me for?
– What won’t it cover?
– What else do I need to know about this policy given my particular circumstances?
– Do I need to buy this insurance or am I already covered by an existing policy?
– Is there another insurance product that I should consider which better suits my needs?
– Could I get more or better coverage and will it cost me more?
