Posted on 25-07-2011
Filed Under (Insurance) by MoneySaver

Before you buy a cheap car, take a good look at the insurance. Do it right and you can save some money on your insurance. How much you pay for your car insurance depends on the type of car and the owner but what many people don’t know is that there are quite a few cheap cars to insure which can work in their advantage.

For example, if you have a history of car accidents or you have run afoul of the traffic law before, then your track record will not be in your favour.

Insurance companies weigh in these factors when pricing the car insurance fee:

  1. Model – The model of your car is a factor that the insurance companies consider. The reason is that some popular models are most often stolen than other models. These include Toyota and Honda. The models with cheaper insurance are: Volkswagen Polo, Ford Fiesta, Fiats, and Renaults.
  2. Repair cost – The higher the repair cost, the higher the insurance fee. High end cars and vintage cars are generally more expensive because of specialised technical skill required to fix the car or that the spare parts are hard to obtain.
  3. History of your car – These factors play a part in the insurance fee: where you live, where you park your car and the and the mileage that you drive per year. If you live in a crime-infested area, chances of losing of your car is high. The more mileage you clock in, the more likely it is to break down due to wear and tear.
  4. Safety features – The safer the car, the lower the insurance fee. A car is deemed to be safe if it is equipped with safety features such as seat belts, airbags and anti-lock braking system.
  5. Resale value of the car – Generally, the more expensive the car, the higher the insurance fee. They also look at the value of the car if it were to be sold to someone else afterwards.
  6. Security features – You can lower the insurance fee by installing an alarm system to protect it against loss from theft.
  7. Characteristics – Insurance companies categories cars into different groups based on the characteristics of the cars . The group that pay the least insurance fee are those that are smaller and easier to drive such as four-door sedans, while high-performance cars belong to the more expensive group.

Before you buy a cheap car, consider the above eight factors which will affect the cost of your car insurance.

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Posted on 23-07-2011
Filed Under (Insurance) by MoneySaver

Many teenagers will try to get their driving licence as soon as possible so that they can buy their own car and have their own mode of transport. In the UK, you are allowed to drive at the age of seventeen and although many parents will either buy a car for their children or help them with the finance aspect of it, the problem that most teenagers will face is the fact that car insurance for 17 year old drivers is extortionate and soon becomes a major hurdle and a spirit killer.

Of course once you’ve passed your driving test, you are very keen to start driving on your own but you may only do so legally if you have proper car insurance cover in place. The thought of driving uninsured will cross the mind of many young drivers and there are valid reasons for this. First of all, you’ve just turned 17 and you don’t want to spend a fortune on your first car. So you get a vehicle that’s pretty cheap, say for less than £1500. Now when you start hunting for a decent 17 year old car insurance quote, you find the prices ridiculous expensive especially for that particular car make/model that you’ve purchased and you think to yourself that this can’t be right because it’s a used car after all, not a new one. But when you keep searching, you discover that no insurer is willing to offer you a decent car insurance quote and the cheapest that you’re getting is £4000 which is well over twice the amount of money you’ve paid for your car.

It is then that reality strikes and the hope of driving your own car starts to vanish. No wait, don’t just give up yet. Surely there must be a way to get a 17 year old driver insured at a rather decent premium, no? Well things are tough in the insurance sector and especially with so many people driving without a licence, the insurers have had to increase quotes a lot for all drivers and you being a new driver with no NCD (no claims discount), your chances are already limited.

So what can you do? Put it this way, you’re a young driver, 17 of age, and just like it’s difficult for a job seeker without experience to get a decent job, you will find it hard as well to get a reasonable car insurance quote, no matter what car make/model  you’re trying to insure. The best thing for you to do is build up your driving experience and no claims bonus so that in 1 or 2 years’ time, you pay a fraction of what you’ll be paying now.

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Posted on 03-03-2011
Filed Under (Insurance) by MoneySaver

As we know the average wedding costs around £20,000 and increases a little each year, most people require insurance for the actual wedding day that includes the ceremony and after wedding reception party that may also include a sit down meal and drinks. If you come from an Asian background the cost of the wedding can double and be more around £50,000.

Why are Asian weddings so expensive?

Asian weddings tend to cost more because of the vast decorations to the hall, the wedding attire and the volume of guests expected to attend. Asian families are usually very close so everyone from the immediate family to the distant family are invited to celebrate this joyous occasion. Non Asian weddings usually have less than 150 guests but Asian weddings can easily reach 800 guests. On top of food to feed everyone Asian weddings are more traditional and usually last a few days depending on the religion. Some Asian weddings last up to 6 days, including celebrations, ceremonies, mehndi party, the actual wedding, reception and giving away of the bride.

As with all weddings it’s a good idea to take out Asian wedding insurance cover as you can be left seriously out of pocket if anything were to go wrong. Most standard wedding insurance cover will insure you against a vast range of mishaps including:

  • Venue mishaps
  • Food cover
  • Wedding car cover
  • Wedding attire

For Asian weddings it is very important to get a tailored quote as the bride’s outfit may be worth thousands in itself, some policies only cover a set amount for each individual item, such as cake, cars, photographer etc.

Don’t be tempted to buy cheaper standard wedding insurance cover as you will find that it won’t cover all of the wedding especially if it is a traditional Asian one. Some insurers will also insure up to 6 wedding events so that you can have peace of mind that the entire wedding is covered and not just the wedding day itself. For as little as £60 you could be covered for up to £15,000 cancellation cover, a real bargain if anything was to go wrong.

Don’t leave buying wedding insurance until the last minute, Asian wedding insurance can be bought up to 2 years before the wedding is due to take place. This is because Asian weddings take a lot of planning and cannot be organised in such a short period of time. You can also save money by purchasing ahead.

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Posted on 20-01-2011
Filed Under (Insurance) by MoneySaver

As less people choose to get married in the UK each year competition in the wedding market is still high and the average wedding can cost in excess of £20,000. For a fraction of this you can get married abroad in a hot country and combine it with your honeymoon.

When you have a package wedding abroad that also consists of the wedding cake, flowers and reception dinner you should always check that they also have insurance. What happens if the company goes bankrupt or things do not go according to plan? You could always get insurance through the travel agent as they would be most unlikely to dispute any problems as all companies they use are handpicked and chosen because of reliability.

What can ruin a wedding abroad?

  • Cancelled or delayed flights
  • Mix up in accommodation or wedding venue
  • Loss or delayed baggage
  • Natural disasters such as hurricanes, volcanoes or earthquake
  • Illness

Wedding cover abroad can be as little as £20 so it’s advised to buy a policy even if the company you are booking with is reliable and says that they do have insurance. Most times problems occur because of the language barrier or lack of specific instruction; so many couples leave all the planning and preparation up to the wedding planners that are to arrange for the big day abroad. Obviously there’s not much you can do unless you are in the country but you should accept that things may not go smoothly on the day.

Photographs and filming of the wedding is a very important souvenir but each country differs in the level of professional photography so what happens if the ‘professional’ pictures that were taken are far from it and are not worth the price you paid? Will you be re-reimbursed or have to pay for it out of pocket, these are all questions that need answering.

Do remember that with most claims you will need to pay an excess and this will depend on how much you voluntarily agreed with when you took out the policy. Things are most likely to go wrong abroad than they are to go wrong in this country as you can keep a closer eye on things here. When you go abroad to get married you have to trust someone else to arrange everything and make sure all is going according to plan.

You can always opt for additional extras such as marquee cover that will give you peace of mind should anything go wrong. It’s worth getting a customised quote if the level of cover is not suitable and you would need more compensation for one item compared to the rest.

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Posted on 16-01-2011
Filed Under (Insurance) by MoneySaver

There is so much help available now to people who want to travel, you can get assistance for those travelling with young children, the elderly and also disabled. There are strict laws that mean travel agencies and airlines cannot discriminate against people with disabilities. So if you or someone you know are in a wheelchair, have prosthetic limbs or need assistance of any kind whilst travelling by law travel agencies and airlines are obliged to assist you.

If you go abroad for a holiday many hotels now have specially adapted rooms for those that need them, more room for wheelchairs and ramps to help with accessibility. You will need to think about travel insurance as having an injury or accident abroad can be costly. Insurance is not only recommended for accident and injury but also for cover on travel money, delays and lost luggage.

As the demand for disabled holiday insurance has increased dramatically over the last five years alone competition is high for customers, as a result of this you should be able to get a reasonable quote for any circumstances whether it’s for a serious ailment or a less problematic condition.

Example of policy coverage for disabled holiday insurance

  • Hire costs covered for mobility and disability equipment
  • Emergency medical cover and other associated expenses covered
  • Replacement of mobility and disability equipment covered
  • Holiday cancellation cover
  • Delayed departure compensation cover
  • Personal liability cover
  • Personal accident or death cover
  • Personal liability cover
  • Loss of passport cover

Each policy will differ in what they cover but usually you can pick your own cover from a list and also choose level of cover so you won’t be left out of pocket. Most places will also need you to pay an excess should you need to make a claim, the general rule is the higher the voluntary excess the cheaper the quote, so if you can afford an excess of £500-£1,000 you should get a good deal. Only opt for this if you have the money to pay should you need to claim. You can also choose customised cover for holidays abroad that involve sports and activities like, snowboarding, skiing, cycling etc. You can also get cover for the family so there is no need to have a separate cover for just one member of the family.

Always make sure that it is safe to travel before booking, your doctor may want to run a few tests to make sure that you are fit and healthy enough to do so. Other than this there is no reason why anybody should miss out on having a holiday whether it is abroad on in the country.

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Posted on 18-12-2010
Filed Under (Insurance, Money) by MoneySaver

Insurers have announced that they are taking more precautions when giving quotes on potential new customers. Instead of the routine questions of do you smoke, drink etc, questions such as ‘how much do you spend on petrol a week’ will also be included. Larger insurers such as Aviva are employing companies to monitor social networking sites so they can check what people are putting in their status update and check their photos etc.

Insurers are claiming that photos of you partying, staying out all night or going on holiday a lot will make a difference to how premiums are calculated. In total honesty how many people do actually tell the truth when answering the questions before you are given a quote? If you are a smoker looking for home insurance you won’t tell them that you are as you know the premium will go up. If you are a contractor and only work a minimum of 6 months a year then travel you won’t declare that either as they know the house is unoccupied for most of the year.

The solution is easy if you have a Facebook account then check the privacy settings so that status updates and photos are only available to view by friends only and not the whole public. It would seem like the most sensible option but most people forget that you can change the settings so the whole world can’t access your personal information.

If insurers will start snooping will it make a difference? I wouldn’t think so, most people will get up to speed of these things and they won’t be able to access everything on Facebook, but then again you shouldn’t be telling everyone that you are going on holiday or staying out all night etc. You can’t really blame insurers for taking on these extra measures as there are many articles that are giving tips on how to lower insurance premiums by lying. For example those that have more than one car but a driveway that allows parking for only one will lie and say that both are parked on a private driveway, just to bring the cost down.

Facebook is a great easy to keep in touch with family and friends that live too far to see on a regular basis, by having an account is allows people from all over the world to stay in contact. As many people have to save money on going out as people are being made redundant and jobs are harder to get and pay well Facebook is a way of keeping up to date with friends and their family as you may not be able to seem as often as you would like. If you have a Facebook account and are worried about snooping then check your privacy settings today to avoid having all your information made public.

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Posted on 22-09-2010
Filed Under (Insurance) by MoneySaver

This insurance policy provides an insured employee a pre-determined percentage of its salary for a definite time period, while the employee is temporarily injured or sick or is pregnant and it is referred to as the short term disability insurance. While this insurance provides a sort of social security to the employees, it doesn’t come under the category of social security disability insurance.

How it is used?

Benefits of this insurance, i.e. a definite percentage of salary, can be availed after 1-14 days of medical declaration of temporary disability of the insured. But there’s a catch here; an insured employee is bound to use his entire available sick days first before starting to avail the insurance benefits. This policy/rule to use entire available sick days first is introduced in order to eliminate any difference between people availing insurance benefits due to a short term illness or a short term serious injury or pregnancy.

Short term disability insurance is paid for either by the company of insured employee or by employee itself. The former option is more frequent than the latter. However, a company can always leave it on employees to take care of their short term coverage that may come with some tax advantages. An employer has right to ask for some medical proof for said short term disability of an employee. Besides, an employer can also make an employee use his sick days first before letting the provision of short term disability kick in.

Eligibility Criteria

There are certain criteria for being eligible to this insurance cover, without which an employee can’t claim for benefits of this insurance. The two most important eligibility criteria include:

  • The insured must have worked as a full time (30 or more hrs/week) employee for the employer before the occurrence of his/her illness, injury or pregnancy.
  • The insured must have been working for employer for a considerable period of time.

Some Facts

There is a time period limit to the advantages provided by this insurance to an employee, which usually vary from 10-26 weeks. However, if an employee wants the advantages to be extended further then he or she must opt for long term disability insurance. There is one thing to remember that unlike short term disability insurance, the long-term disability insurance is much lenient with different regulations. Although, it is not necessary to have the insurance cover financed by the employer, it is imperative on the part of the employer to establish it for his employees.

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Posted on 29-08-2010
Filed Under (Insurance) by MoneySaver

Learning to drive cars is the most important thing a person needs to do as this enables us to do so many things. However there are certain qualifications that one should fulfil before becoming a perfect driver.

People can’t just expect to drive cars without practicing as learners because it’s not so easy to understand how the controls work and how to properly use them. It’s quite necessary to gain expertise in your driving skills on roads so that you gain an insight into the actual driving conditions. It’s also important to get insurance because anything can happen once an inexperienced person sits behind the wheels, not to mention that it’s a legal requirement as well. Many people tend to opt for an annual learner driver insurance policy although that’s not mandatory. However with a yearly contract, you can’t get rid of your policy once your learning is complete and that’s why a temporary policy is better suited for learners.

It’s also tough to get the right kind of insurer who can cover such risks. Most of the times, companies hate to cover such learner drivers as they don’t have a full fledged driving license. Such new drivers also face so many expensive insurance quotes owing to their lack of experience. But, some companies do provide a reasonable insurance through which it’s possible for a person who is yet to imbibe driving skills to drive anyone’s car. Although one might think about not taking such insurance, accidents can happen and you also don’t want to have the police after you before you even get your driving licence.

Private driving practice is necessary and the Driving Standards Agency (DSA) of UK recommends it to learner drivers. It believes it can help them in clearing, the driving test for acquiring the license and will make them better drivers as well.

Any learner driver in UK should have a supervisor if they haven’t yet received their full UK driving licence. The supervisor’s job is to watch over the learner as he starts driving on roads. This supervisor should be more than 21 years old. Apart from that, he should possess a valid driver license and he should have been driving for a minimum period of 3 years. If somehow, you can’t drive in any situation during your private practice sessions, he should be able to tell you how to stop the car safely.

The claims of learner driver insurance can also include replacement of the vehicle driven by the learner in case of a mishap if it had been acquired only a year back. Its owner should only be its registered keeper. The replacement only applies if the mishap happens in UK. A courtesy car can also be made available if the vehicle has gone for repair to a garage after sustaining some minor damages. Apart from substitution of damaged vehicle, such policies also cover the medical expenses of those injured.

The claims for such damages can vary with various insurance companies. After a learner has cleared the test, his insurance ends. His last coverage under the insurance includes his return trip from the centre of the test to his house or wherever he keeps his vehicle. He can also get an insurance refund for the days in which he has not driven his vehicle. Some of the policies don’t allow such refund. After this insurance has ended, a learner should get any other driving insurance for safe driving if he continues to do so.

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Posted on 21-08-2010
Filed Under (Insurance) by MoneySaver

At the moment having insurance for properties that are let is not required by law but there are very good reasons to have insurance, to be on the safe side. The majority of householders already have home insurance but if you were to let the property the insurance in place will not usually cover any damages that re made if someone else was to inhabit the property.

Do I really need landlord insurance?
Its good practice to have it as you may only require minimum requirement such as building cover. Building cover will insure your property against any damage that might require the property to be rebuilt. If you would like further coverage such a fire, theft and damage you can opt for this too.

What is covered in landlord insurance?

As all insurance companies differ in what they cover it is worth checking what you want is realistic and affordable. Although when you let out a property a deposit is given for any damage that may be caused so you are covered in some way, the chances that the deposit would cover all damages are very slim. If you have insurance you could claim and have the property ready for rental again in no time.

Some of the things that landlord insurance covers

  • Fire damage
  • Theft
  • Contents insurance
  • Loss of rent insured
  • Alternative accommodation insured

As all policies vary its best to check with your quote thoroughly to see if there are any clauses. For example some insurance provide you with accidental cover for free. The clause is this is only available if your tenant is a professional or is retired. So it may be best to make sure you would still be covered if you were not housing a professional or a retiree.

The competition for landlord insurance is high but many of the insurance companies are not known. It would be best to do some research before you accept a quote blindly and if possible go with a well known insurer as you know they won’t be filing for bankruptcy anytime soon. If you have more than one property you may benefit from further savings as the more you insure the bigger discount you get.

How much does landlord insurance cost?
Depending on the level of cover needed it should cost less than insuring your home, there is the added benefit that the excess for claims can be as little as £50.

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Posted on 13-08-2010
Filed Under (Insurance) by MoneySaver

As newly qualified driver you need to sort out car insurance if you will be driving. If you already have access to a car i.e. your parents then they can add you as an additional driver. If however you have your own car then you will need to get quotes from at least 5 different insurance companies and compare them.

Getting car insurance for the first time drivers can be exciting as well as annoying. As a new driver you will find that in most cases the insurance costs more than the car itself. The best thing to do is to find a car that you like and get some quotes for it; you may find that the car you want is actually costing too much in car insurance premiums. This is the biggest problem new driver’s face after passing their driving test. In the news recently was a 17 year old teenager who just passed his driving test, he bought a Vauxhall Corsa for £1,400 but was quoted £17,000 for insurance. He managed to get the quote down to £2,000 but even then the insurance cost more than the car.

If you can hold on to your licence for a few years then start driving as some licence holders do not actually drive a car as soon as they pass, instead they wait a few years. Age as well as licence held is the factor when it comes down to insurance quotes. So if you have held your licence for a few years you are at a lower risk of having an accident to someone who is just qualified even if you haven’t driven since passing your test. You could however be put on a driving policy as an occasional driver so you can still have some practice in the mean time.

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