The insurance market can feel like a minefield. Hundreds of lenders and thousands of policies – finding the one that is best for you can be an intimidating task. Nothing feels straightforward and there’s legal jargon you may not understand, so what checks should you do before you sign on the dotted line:
1. Are you being offered this insurance alongside something else?
When you purchase one product, sometimes insurance is offered as an additional purchase – for example, travel insurance when purchasing a holiday or life assurance when purchasing a mortgage. If these insurances are needed, it is always worth looking elsewhere as you may find a cheaper deal or a policy that offers better coverage.
2. Have you shopped around?
Shopping around regarding insurance can be complicated as policies vary lender to lender. Therefore, don’t just concentrate on price, as this isn’t always going to offer the best cover for your needs. Also, be wary of comparison sites, as they won’t necessarily find you the best deal out there for your specific needs.
3. Are you under-insuring or over-insuring?
Not only should you check that the insurance covers everything you need, but just as importantly you should check to make sure the cover you are purchasing isn’t already covered somewhere else. For example, some home insurance packages include mobile phone insurance. Make sure the policy you select is suited for your needs and requirements.
Whether you under-insure or over-insure, both result in wasted money.
4. Have you answered your insurers questions correctly and honestly?
Check, check and double check – it’s of the utmost importance you have answered your insurer’s questions correctly – whether it’s by phone, application form, online or face-to-face. Failing to do so can result in your policy being cancelled, or your claim being rejected should you ever have to make one.
It is important not jump into any type of insurance without thoroughly considering what best fits your specific situation. Insurance can be very complex with stringent terms and conditions, by seeking financial advice you ensure you will find the best policy for you.
If you would like to discuss insurance and how it can benefit you and your family, please don’t hesitate in getting in touch with the First Financial Solutions team. You can call them on 01639 262222 or click here to contact them.