The Importance of Insurance

[Total: 0    Average: 0/5]

Insurance can often be viewed as an irritation, an extra charge on top of something that is already costing the customer dearly, but it does pay to have it. The simple fact is though that the basic formula has to be that either everyone has insurance, or no one does! In the UK, when it comes to car insurance it is the law to have insurance.

Due to this law, there are of course lots of companies offering insurance services and most of them do not specialise in one type of insurance, car for instance, but offer a range of coverage options. This could be travel, home, building, pet, landlord’s, health, contents, motorbike, caravan and anything else that you are at risk of losing or damaging that could leave you with financial problems if you do not have insurance.

There are also specialised websites who have tapped into consumers’ reluctance to fully research their insurance provider and whether they are receiving the best coverage, for the best price. Thus, these websites use the data that you input about your insurance needs and compares hundreds of insurance providers so that the consumer does not have to.

While this is a major benefit for consumers and the advertisements suggest that this is a sure-fire way to get the most cost effective insurance policy, this may not be the case. Every individual and their car or home or pet has its own specific set of needs, which do not always fit into the generic questions that these websites ask. Companies such as Admiraland Swiftcover amongst others, often reward the customer who firstly values loyalty as much as the company and secondly who calls the company directly to discuss their insurance needs.

When it comes to car insurance in particular, consumers often find that a massive difference can be made to the cost of their cover for the slightest change in their information, which can prove to be very frustrating. However, one of the biggest bugbears for drivers comes down to gender. For a long time, female drivers attracted a much lower insurance premium to males, and the latter began to question how fair this was in the market. Rules have recently been changed so that female drivers cannot be quoted a lower rate based purely on their gender, all insurance is evaluated using the same information.

The large amount of technology that is available these days also means there is a greater demand for insurance – modern technology costs a large amount of money but can often also be ruined in the blink of an eye. An accidental elbow knock to a glass of water could put a new laptop in an early grave so insurance can be invaluable to claim against, so all of a sudden that monthly cost that you resented pays off.