Setting Up Insurance

Understand the Types of Insurance You Might Need

There are many types of insurance, but the ones most people consider are:

Healthcare/Medical Insurance

• What it is: Helps cover the cost of medical treatment (doctor visits, hospital stays, prescriptions, etc.).

• Do you need it?: In the UK, healthcare is covered through the NHS. However, private health insurance can provide quicker access to certain treatments or cover treatments not available through the NHS route.

Car Insurance

• What it is: Provides financial protection if you're involved in a car accident, theft, or damage to your vehicle.

• Do you need it?: If you drive, you are legally required to have car insurance.

Home or Renters Insurance

• What it is: Covers damage to your home or personal belongings, and may cover theft, fire, or flooding.

• Do you need it?: If you own a home or rent, it's a good idea to have home insurance, though renters insurance is optional in some places.

Life Insurance

• What it is: Provides financial support to your family or beneficiaries if you pass away.

• Do you need it?: If you have dependents or financial obligations (e.g., mortgage), life insurance is a good idea.

Travel Insurance

• What it is: Covers you for unexpected events while travelling, such as cancellations, delays, medical emergencies, or lost luggage.

• Do you need it?: If you travel frequently or are going on an important trip, travel insurance is useful for peace of mind.

Pet Insurance

• What it is: Covers veterinary costs for your pets.

• Do you need it?: If you have pets, pet insurance can help reduce unexpected veterinary costs.

How to Compare Insurance Providers

It’s important to compare multiple providers to find the best policy for your needs.

Use Comparison Websites

These websites allow you to compare quotes from various insurance companies:

For health, car, home, and life insurance

• Compare the Market

• MoneySuperMarket

• GoCompare

• Confused.com

For car insurance

• Autotrader (good for car-specific insurance)

• Admiral (offers a wide range of options)

For health insurance

• Bupa (specialises in health insurance)

• Vitality (offers different health plans)

Get Quotes

Once on a comparison site, follow these steps:

1. Enter your details: This may include your age, location, type of insurance (e.g., car, home), and specific needs (e.g., coverage limits or excess levels).

2. Choose coverage: Decide what level of coverage you want (basic or comprehensive). Be sure to check the details of what's included.

3. Compare providers: The website will show you a list of providers and the premiums (the cost of the insurance).

4. Read reviews: Look at reviews for customer service, claims handling, and overall satisfaction for each provider.

Check the Fine Print

• Exclusions: Make sure to check what is not covered by the policy.

• Excess: The excess is the amount you pay before insurance kicks in. Compare excess levels between policies.

• Renewal Terms: Some policies increase in price when renewed. Check if the price will stay the same or if it will rise significantly.

Contact the Provider

If something isn’t clear or you need more details about a policy, contact the provider directly. You can often speak to a customer service representative, who can explain the terms in simple language.

What Makes a Good Deal on Insurance?

A "good deal" isn’t just about the cheapest price—it's about getting the right coverage for your needs at a fair price.

Price vs. Coverage

• Price: Look for a price that fits your budget, but don’t just choose the cheapest option. Sometimes cheaper policies offer less coverage or come with higher excess costs.

• Coverage: Ensure the policy covers what you actually need (e.g., third-party liability in car insurance, comprehensive home insurance that includes fire, flood, theft).

Consider Customer Service and Claims Handling

• Customer service: Good providers are easy to contact and willing to explain things clearly. Look for reviews on how helpful the company is.

• Claims process: A good insurer will have a straightforward and quick claims process. Check online reviews to see if others have had positive experiences when making claims.

Look for Add-ons or Discounts

Some providers offer add-ons (e.g., roadside assistance with car insurance) or discounts (e.g., multi-policy discounts if you buy car and home insurance together). These can add value to your policy.

How to Buy Insurance

Once you’ve compared policies and chosen the right one, follow these steps to buy insurance:

Online Purchase

1. Fill out the application: On the provider’s website or comparison site, complete the application form.

2. Payment: You’ll likely be asked to pay upfront for the policy or set up a direct debit for monthly payments.

3. Confirmation: After payment, you should receive an email or document confirming your insurance. Keep this in a safe place (in case you need to make a claim).

Over the Phone

If you feel unsure about buying insurance online, you can call the insurance provider’s customer service and buy over the phone. The agent will guide you through the process.

Make Sure You Have the Right Documentation

Once your insurance is confirmed, you should receive:

• A policy document: This will outline the terms of your coverage.

• Proof of insurance: This is a certificate or document you can keep in case you need to provide evidence (e.g., for car insurance or travel insurance).

How to Make an Insurance Claim

Know What to Do If You Need to Claim

If something goes wrong and you need to claim on your insurance, follow these steps:

1. Contact your insurer immediately: Most insurers have a dedicated claims line or online portal. The sooner you report the claim, the better.

2. Car insurance: If it’s an accident, contact the police if necessary and then your insurer.

3. Health insurance: If you need to see a doctor or have treatment, call your health insurance provider to check if the treatment is covered.

4. Have your information ready: When calling, have your policy number, details of the incident, and any relevant documentation (e.g., photos, police reports) ready.

5. Follow the process: The insurance company will explain the steps involved in filing a claim. This might involve filling out a claim form or providing additional information.

6. Wait for approval: Your insurer will assess the claim and decide if it’s approved. This can take time, depending on the type of claim (e.g., car accidents might take longer due to investigation).

7. Receive payment: If the claim is approved, the insurer will either:

8. Pay you directly (e.g., for medical expenses or property damage).

9. Pay the service provider (e.g., the repair shop or hospital).

Keep Track of Your Claim

• Document the process: Keep copies of all emails, forms, or letters related to the claim.

• Follow up: If you haven’t heard back after a reasonable period, contact the insurer for an update.

Summary Checklist

1. Understand your insurance needs (health, car, home, etc.).

2. Compare providers using comparison websites.

3. Look for good value—not just the cheapest, but the right coverage for you.

4. Buy insurance online or over the phone, ensuring you keep all documentation.

5. File claims promptly and follow up on any required information.

Final Thoughts

Insurance can be complicated, but breaking it down into these manageable steps can make it easier. You don’t have to navigate the process alone—use the resources and customer support available to you!