At times of economic hardship, insurance can sometimes be the last thing you think about when it comes to decisions about your monthly expenditure. When you’re feeling the financial pinch, peripheral spending on things such as insurance may be the first thing you might think about dropping in favor of meeting the demands of gas and electricity providers or keeping up with mortgage or rent payments. There are, however, some types of insurance which have the potential to save you a huge amount of money over time, and can be viewed as an investment rather than an unnecessary expense.
Sometimes insurance may seem a bit like a gamble. If we don’t purchase it, we risk having something go wrong which will require a high amount of expenditure to put it right. If we do have it, it can seem as if we are paying for an eventuality which looks unlikely to happen. Although many types of insurance may seem unnecessary for you and your current circumstances, some insurance is well worth considering in order to protect yourself against unnecessary expenditure in the future.
The following types of insurance may not be the first which spring to mind when you think about obtaining cover against unexpected events, but may result in you saving a significant amount of money should the worst happen.
Gap insurance is a product designed for car owners or leasers and covers the difference between the current market value of your vehicle, and the amount you still owe on the loan of the car. This type of insurance is extremely useful in the unfortunate event that your vehicle is either stolen or written off, as in either of these cases you would still be liable for paying off the outstanding amount owned.
If you buy a new car for a certain amount, depreciation means that the car starts to lose value as soon as you drive it away from the dealer. The problem is that if you have taken out a loan to cover the cost, you will still be liable to pay the full amount on the car even if it is involved in an accident and written off, or stolen. This could leave you with not only with an outstanding debt but also with no vehicle.
Gap insurance is ideal for people who have purchased a car with a loan, and the vehicle stands to depreciate from the time you make the purchase. People who have loans with high rates of interest or trade-in costs could benefit from making sure they are covered with this type of insurance.
Those who lease their vehicles, even though they are not actually purchasing the car, are usually still liable for the cost of the car if it is stolen or written off. Car leasing payments are typically amount to less than the value of the car and people can be caught out should the worst happen. Gap insurance is of even more value to people who choose to lease their car, as it protects against accident or theft. These days, many lease contracts make the taking out of a Gap insurance compulsory.
A vast amount of people in the western world have pets of one sort or another. Whether you keep birds, chinchillas or hamsters, as a responsible pet owner you understand that every so often things can happen to your pet. Our pets tend to become part of the family and the thought of them being ill or injured is upsetting, and we will do everything we can to make our favourite companions better as soon as possible. Pet insurance is a must for pet owners as a result.
Accidents are always happening in and around the home, no matter how careful we are and what we do to prevent them from happening. There is nothing worse than realising after a mishap that you are liable to pay the full amount for the damage you have caused. Dropping a tin of paint on your brand new carpet, or accidentally damaging your laptop computer when it falls to the floor can cost you thousands, and it all could have been prevented by taking out a good accidental damage policy on your home and contents insurance. Although the option pushes up your premiums, it’s definitely worth weighing up what you can actually afford should an accident happen, and budgeting to have comprehensive damage cover in place.
In these tough economic conditions, more and more employers are looking to cut costs by cutting health benefits. More people than ever before are turning to their own Private Medical insurance (PMI) to cover them in case of illness or poor health.
Having PMI safeguards you against a range of illnesses from cancer to heart disease, covering you in the event that you lose earnings, and supporting you with the cost of medical treatment associated with your condition. The younger and healthier you are, the cheaper it is to secure a superb PMI product which offers you peace of mind that you are well protected should you fall ill.
If you and your intended are in the throes of planning your big day, wedding insurance can be indispensable. This niche product provides people who are getting married with cover in the event of a range of mishaps associated with your impending wedding. Whether your photographs fail to come out properly, your day is beset with poor weather, your flowers don’t turn up as agreed or your cake collapses, wedding insurance can protect you against needless expenditure when things don’t go according to plan. If for any reason you need to cancel your wedding, good insurers will happily reimburse the costs of the big day when you are covered under the policy.