One of the most boring parts of being an adult is having to sort out insurance. There’s so many different types and it can be hard to work out what you really need. Some types of insurance, like car insurance are a legal requirement, others are not. So how do you know which ones you need? And what other factors do you need to consider?
As previously mentioned, car insurance is a legal requirement if you want to drive a car in the UK. When I got my first car I used a price comparison website like mustard.co.uk to find the best type of insurance for me at a decent price. Although it was my first time getting car insurance, I had passed my test four years previously and I was almost 30, so it cost me less than £500 for my first year. As well as the price, there were other factors that I needed to consider before I chose my policy. These included:
- Type of cover – Do you want third party, comprehensive or third party, fire and theft?
- Excess – The amount you have to pay up front when you make a claim.
- Medical expenses – Does the policy cover payment for injuries if you were to get into an accident?
- Contents – Will the policy cover the contents of your car in case of theft or an accident?
If you are a home owner then you will want to consider purchasing home insurance. This will cover the building and you can also add on contents insurance to cover the items in the house too. In case of any problems like a boiler breaking down or the roof leaking during a storm, home insurance is really handy to have. There are many different scenarios when home insurance could come in handy:
Power cuts – If you suffer from a power cut that lasts a long time, you may end up losing all of the contents of your fridge and freezer. Good home insurance can cover this.
Thefts – If you are unlucky enough to have your property burgled, contents insurance can cover the costs of any valuable items that get stolen.
Fire – If your home was to go up in flames, home and contents insurance means that you would be covered for any damages.
Life insurance is not something that I have ever considered until recently. I thought that it was just something you got when you had kids, but that’s not the case at all. Life insurance is there to help with any financial obligations if you are to pass away. If you have a mortgage or any outstanding debts, you won’t want your family to be left with them once you’re gone. It is also a great way of making sure your funeral can be paid for.