Insurance is a big industry, providing people much needed protection against paying out thousands or more if accidents or other incidents were to occur. In some cases, people end up taking out a payday loan because they don’t have insurance and an accident has left them in a financial mess. However, loans should only be taken out in a financial emergency and insurance can act as a solution to avoid having to opt for this.
With the current insurance market offering an abundance of different types, it can be difficult to know which one you should opt for using and what they all provide. Therefore, we are going to take a closer look into what some of the different types of insurance are and what they can do for you.
If you own and drive a car, lorry, van or motorbike, then you’ll already be extremely aware of what vehicle insurance is. It is a legal requirement to have vehicle cover in order to drive on the UK roads but even then, there are different types of additional and non-compulsory covers you can have on your car, which you can decide on. However, third party insurance is the legal minimum that you must have on your vehicle. By having third party cover, it means that you are covered if you damage or injure another person, vehicle, property, or animal through an accident whilst driving. With plenty of insurance companies to choose from, you can compare the prices to find the best one to suit your vehicle and budget.
In the UK, residents are very fortunate to have free health care because of the NHS (National Health Service). However, even in the UK, if you wish to have private medical treatment you’ll need health insurance cover so you can be sure that you are seen much more quickly and guaranteed a bed. Generally, it will cover you for most conditions, such as having a hernia removed or having a hip replacement. Similar to vehicle insurance, you can have different types of policies, which offer different types of cover depending on what you need.
When you travel abroad, it is recommended that you invest in travel insurance. Most countries won’t offer free healthcare to travellers or any discounted prices (with the exception of an EHIC card from the UK) so you should take travel insurance out to ensure that you have cover for any medical expenses while you are away. Furthermore, travel insurance can also cover trip cancellations, if your luggage is lost and any travel accidents! You can have different levels of cover, so you don’t need to pay a fortune!
The majority of us either have, or want a pet, which we do and can think the world of! If they were to get ill and require veterinary treatment, we would always want to be able to pay it, so our pet can be treated instantly. To ensure that you will be able to afford any treatment, it is recommended that you have pet insurance. Additionally, some policies pay out if your pet is stolen, lost or when your pet sadly dies.
You can legally own a home and not have home insurance, however it is often suggested that you do have it regardless. If any unforeseen circumstances such as fires or natural disasters were to occur, then you would have home insurance coverage which will protect your home and pay out for any damages done. Be aware that you will be required to have home insurance if you finance your home with a mortgage.
There are so many more types of insurance which we haven’t mentioned in this quick guide, however, the ones which we have discussed are some of the most popular types, which we believe that you should be aware of. There are plenty of comparison sites available which can help you compare prices of different insurance companies so you can find a policy which suits you and your financial situation.