Setting Your Safety Net – A Simple Guide to the Complexities of Choosing Insurance

comparing-insurance

Choosing the right insurance policies might seem difficult – after all, there’s a lot of options out there. No two insurance companies are the same, each offer policies that have different benefits, exclusions and costs. Following this simple guide can help you navigate the complexities of choosing insurance, so that you can purchase the right policy for you.

 

Travel Insurance

Without travel insurance, you are personally responsible for covering any medical or other costs resulting from accidents while on your holiday. Some insurers such as Huddle will even provide cover if your trip is cancelled due to unforeseeable events outside of your control.

 

With many providers available and multiple policy options, to choose the right provider, you must consider the following:

 

Where are you going? The level of cover and the cost of travel insurance can vary depending on the country you are travelling to. Certain risks, such as contracting a disease, will also be more prevalent in some regions, and therefore more important to include in travel insurance. Using sites such as smart traveller before setting off, is a good way of reviewing the risks you may experience in certain areas.

 

What are your going to do there? Before choosing a policy scan the activities that are included in the travel insurance policy. If you are going to be doing activities outside of those in the stated policy, you will need to pay extra to ensure coverage.

 

Are you taking valuable items? Consider the valuable items you will be taking along with you. Common expensive items include cameras, laptops and tablets. Items in your check-in luggage also often aren’t covered.

 

Do you have any medical conditions? Medical conditions that pre-exist the purchase date of your policy may not be covered. If you have any such conditions, contact the insurer to ask if they’ll cover you for it automatically or if you need to do an assessment to get covered.

 

How to save: To save on your travel insurance the best tip is to buy early and buy online. There may also be a special offer available for members of certain institutions. So it pays to do your research.

 

Car insurance

The two main types of car insurance are:

 

Comprehensive car insurance: Which covers you for damage or loss caused by theft, collision, or natural events such as hail. Comprehensive car insurance also covers damage caused by you to other vehicles and property.

 

Third-party insurance: Third party cover protects you from claims made for repair or replacement of someone else’s vehicle or property.

 

What to look for:  When purchasing car insurance, it is important to look for cover that includes personal belongings, windscreen replacement and the loss or theft of keys. Choosing a reputable insurance provider often comes with the promise of good customer service. This can include a 24-hour helpline, roadside assistance and an alternative car to keep you mobile while any repairs are taking place.

 

How to save: Numerous driver discounts are available for online purchase, long-term customers, drivers of a certain age and safe drivers. Your car insurance excess is the out-of-pocket amount you have to pay when making a claim with your Insurer. Most insurers will allow you to increase your excess to reduce your premium. This is one of the most effective ways to save on your car insurance costs.

 

 

Health Insurance

As a recent Harvard study noted, “your family is just one serious illness away from bankruptcy.” With so many providers available, it can be difficult to find the right fit to ensure that you receive value for your money.

 

Health insurance requires the most individual level of cover of all the insurance types. Taking note of any pre-existing conditions will help you to narrow down your policy options. Researching whether benefits apply per policy or per person, will also have an impact on your policy choice if you are single or wanting family cover.

 

Life throws many unexpected curveballs. Choosing the right insurance for your individual circumstances provides you with peace of mind and protection in the event of an unexpected event. Policy shopping and thorough consideration of your individual needs are the two most important steps to choosing the right policy cover for you and your family.

 

Author Bio: Laura Costello is in her final year of a Bachelor of Law/International Relations at Latrobe University. She is passionate about the law, the power of social media, and the ability to translate her knowledge of both common and complex topics to readers across a variety of mediums, in a way that is easy to understand.

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