So, while car insurance is a must-buy, there are so many other types of cover available, it can be hard to work out which ones you really need — and even what you might already be covered for. Use this guide for a ‘must-have’ and ‘Can’t-do-without’ insurance to make an informed decision about the cover you take out.
Life insurance
Important if your partner, children or other dependents rely on your income to cover the mortgage, rent or other living expenses. Life insurance will pay out a lump sum or make regular payments to them if you die. It won’t pay out if you can no longer work due to illness or injury: you’ll need income protection or critical illness insurance for this. Before you get a life insurance policy, think carefully about your personal circumstances. For example, how long do you need the cover for? If you only need a cover that runs until you have paid off the mortgage or until your children reach 18 years of age, consider a fixed-term policy.
Building and contents insurance
Buildings insurance is usually a condition of your mortgage and covers damage to the structure of your home, while contents insurance covers your possessions. You will usually pay extra to cover accidental damage or personal possessions that you take out of the house, such as your phone.
Pet insurance
If you couldn’t comfortably pay an unexpected vet’s bill due to your pet dog or cat is ill, you should consider getting pet insurance. Do note that expenses can quickly add up if your pet develops a long-term condition.
Car insurance
Third-party insurance is the legal minimum. However, a good policy will cover things like windscreen damage, loss or theft of your keys and recovering your car from the scene of an accident. Look out for other desirable features such as new car replacement, and cover for legal costs and transport costs after an accident.
Travel insurance
The average travel insurance policy costs around $250-$500 a year, whereas the cost of medical care and repatriation (getting you home) after a serious accident or emergency can run into six figures. It’s a no-brainer. So better get one for your safety.
