Insurance

Our guides cover anything from car insurance to business insurance. If you’re after some good help and advice from questions such as what’s the difference between Comprehensive and third party cover and how much does electric car insurance cost.

How are car insurance quotes calculated?

In short, it can be slightly complicated. A lot of people ask “How are car insurance quotes calculated?” But one of the biggest questions is how your premiums are worked...

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Getting at least 40% more on your over 50s life insurance policy

Every year, an increasing number of people buy guaranteed over 50 life insurance as a way of leaving a cash lump sum to their...

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Does a 17 year old need their own insurance policy?

If you are 17 and just trying to find car insurance for the first time you are probably being pretty astounded right now about how expensive it is. So the question that...

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How much does imported car insurance cost?

Imported car insurance works pretty much the same way as the regular type of insurance works. In fact you can insure an imported car with a regular insurance policy; although you can also...

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How can I keep my car insurance costs down?

Car insurance is one of those costs that you just have to pay, like it or not. But it can be pretty expensive; in fact it can be seriously expensive for...

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Is it worth protecting your no claims discount?

Protecting your no claims discount is a tricky subject and there are certainly a few pros and cons. Many people point out that if you have a protected no claims bonus and you have an accident, your...

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What are ‘total excess’ charges?

Total excess charges are generally applicable to full comprehensive insurance and they particularly apply when you make a claim on your policy due to a fault on your part (or being a...

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Can male motorists benefit from cheap car insurance for women?

The short answer is “No, but you used to be able and you might be able to in the near future.” It used to be the case that for a male driver, adding a female...

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Why do young drivers pay more?

It is generally accepted that the younger you are, the more you have to pay for your car insurance. On the face of it, it seems...

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Why is it more expensive to pay for car insurance monthly?

Since you receive your car insurance day by day throughout the year, you would think that you could pay for it as you use it, rather...

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Finding low cost car hire

There is little doubt that for many people, economy is a prime consideration when choosing a car rental solution. However, there are a few things you may be able to do that could...

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Benefits of black box insurance for young drivers

The ability to drive is something that most young people look forward to and start their lessons as soon as possible so they become free and independent and most importantly, responsible. Unfortunately previous young drivers...

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How to get the best deal on insurance, pension schemes and utility bills

Most of us consider the likes of car insurance, pension schemes and utility bills as part of our outgoings, but the majority of people...

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How can I reduce my car insurance?

The cost of keeping a car on the road is rising, but one area where you don’t have to shell out to stay in the driving seat is car insurance. Unlike fuel prices where we have no control in the...

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Don’t let life insurance quotes confuse you

If you are thinking about getting a life insurance quote sorted out on the internet then you will find that it is a surprisingly easy thing to do these days. The best insurance sites are well laid out for new users and...

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What’s the difference between comprehensive and third party cover?

There are 3 primary types of car insurance; fully comprehensive, third party (fire and theft) and third party only. Of course, third party with fire and theft is exactly the same as third party except you’re covered...

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Tips for caring for antique guns and swords to ensure they retain value

Having antique swords and guns on display in your home can certainly lend a touch of authentic period glamour to your decor; however, as is the case with...

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How Can I Get A Good Deal On My Car Insurance?

Nobody likes paying for car insurance and that time of year when you have to pay your premiums and look for new quotes is certainly no fun. Unfortunately...

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How can I cut the cost of car insurance?

Car insurance is one that we would all rather not have to pay for, but unfortunately if you drive you have to have insurance. So what can you do to...

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How can insurance help you save money?

The signs of a full rebound in the economy are, if not non-existent, are hard to find. For the majority of households, the need to make...

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A quick guide to multi car insurance policies and how they work

There was a time when having a single car was a luxury and only the rich would have more than one, but in recent years it has become more and more common for families to...

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How much does electric car insurance cost?

Electric cars are still a relatively new thing and while there are a few models already available and a few more set to be launched...

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Can I insure more than one car on the same policy?

In the past the answer would have been no, but now a days you can indeed put more than one car on the same car insurance policy. Not every policy offers this...

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Why is car insurance so expensive?

Well firstly, you’re right it is one of the more expensive annoyances in life and it also seems to be getting more expensive. The truth is though; insurance companies are not making obscene profits – the insurance game...

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Why is car insurance for convicted drivers so expensive?

There are a few reasons why convicted driver’s insurance is so expensive. First of all, remember that insurance is all about risk....

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Why are premiums for young drivers so high?

Insurance can be pretty expensive for everyone, but it has to be said that it is often shockingly high for...

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What does Third party insurance cover you for?

There are (generally) three types of car insurance: Third Party Third Party, Fire And Theft Fully Comprehensive As the name suggests, fully comprehensive covers everything and third party fire and theft...

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How To Pick The Best Over 50 Car Insurance Policy

If you are over 50 (or you’re shopping for car insurance on behalf of someone who is) you (or they) probably have many years of driving experience. Older...

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What Is Monthly Car Insurance And Who Is It Helpful For?

Monthly car insurance is  a relatively new option on the insurance market and it falls somewhere between temporary insurance and regular car insurance in terms of how it works and what it is useful for. The principal is that you...

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A Guide To Young Driver’s Car Insurance And Why It Is So Expensive

Getting on the road for the first time, when you are 17 or maybe 18 is a real challenge to say the...

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A Few Ways To Save Money On Your Student Car insurance Policy

By the time you start uni you are generally 18 or older and chances are good that you have a...

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How to save money on your life insurance policy

There are a large number of life insurance products for sale in the UK and the types of policy can vary between suppliers. Furthermore, just as there are...

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2 great ways to lower your monthly outgoings

There are so many nifty ways to save money in other parts of your life, but the two biggest are being savvy with your shopping and...

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Do I really need to get life insurance?

Life insurance is of more use to those that cater for a full family as appose to those who live alone. If the money you make goes into paying for the house...

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5 things to keep in mind when looking for vehicle insurance

If you are in need of vehicle insurance, there are five things to keep in mind when searching for the best...

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6 tips to save money buying a car

Buying a car is one of life’s milestones – and milestones usually come with an expensive price tag. But not necessarily! Here are 6 tips to save money buying a car: 1. Comparison engines Many places online offer...

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7 ways to make your car insurance cheaper

Car insurance can be incredibly expensive. But there are lots of ways you can reduce your premiums by a significant amount. If you put all the following tips...

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How to save money on your business insurance

If you currently run your own business, it’s a vital requirement to obtain adequate business insurance cover. Regardless of the sector that you are trading in i.e. whether you are a self-employed builder...

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10 Reasons why you should insure your Wedding

If you’re in the process of planning a wedding, it’s wise to get wedding insurance. A number of unforeseen circumstances can occur, from last minute cancellations to the loss or damage...

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How to save money on business liability insurance

Owning a business requires a very high level of responsibility. If you happen to be a business owner, you know this. You should also know that one of the most important things you are...

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Why do you need life assurance?

By guest writer Graham Turnbull The title of this article is a very good question, and one I used to hear many times as a Financial Advisor of some 15 years. Many of us have a real aversion to the...

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How can I cut the cost of import car insurance?

It is a well known fact that imported cars and vehicles are generally more expensive to insure than their equivalent UK produced (or UK...

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Insurance is a pretty big topic really, which is why we will be breaking it down into several smaller, more manageable guides over the following pages. In fact it is such a big topic that there are probably a few types of insurance you don’t even know about.

Essentially, any time you have any risk of loss, chances are good you can insure against it. So car insurance is an obvious one, since driving is one of the riskier things we do in our day to day lives. We also have insurance in case we are victims of crime or against any other unfortunate event which befalls us.

Understanding How Insurance Works

Everyone knows how insurance works; you pay a premium set by the insurance company (hopefully you shop around for the best deal first of course) and if some predefined event happens they pay out some amount, generally enough to cover all or most of the loss incurred.

But understanding how the insurance companies calculate risk and hence premiums is helpful as it may save you money later.

Risk Vs Reward

The insurance company makes money when the bad event doesn’t happen. So if you don’t have a car accident they don’t have to pay out. They keep your premium and that is their profit (after overheads are paid).

If you do crash, get robbed or have a fire etc… The insurance company has to pay out. They still keep your premium, but the cost of the pay out may be more than your premium and in that instance they make a loss on your account.

Of course they have thousands of customers and as long as on average the amount they take in premiums is more than they pay out in claims they should make a profit. The first step is figuring out how risk your account is.

Risk Profiling

Risk is worked out using statistics for the most part. Hypothetically, if you have a 10% chance of making a claim each year, and the cost of a claim would be £1,000 then your insurance company would expect to pay out £1,000 every ten years, or £100 a year on average.

In this instance they would have to charge you £100 plus some amount to cover their overheads and hopefully leave enough for their profits.

In the real world your claim amount would be much harder to predict. Taking car insurance as an example – you could have a small bump which costs £200 to fix or you could write off someone’s Ferrari worth £200,000. And on top of that you could get sued for a few more thousand too.

This is why insurance companies look for any type of correlation they can to accurately assess not only how likely you are to claim but how large a claim might be. If you live in an area with a lot of crime your house insurance will be higher, if you drive a faster car your car insurance will be higher…

Even having the wrong job can cost you money if for instance Engineers tend to have more expensive car accidents than HR Managers they will pay a higher premium accordingly.

Other Things That Affect Insurance

As we mentioned above, on top of the expected average cost, the insurance company has to add some amount to cover their overheads and their profit. This is why medium to smaller companies often have lower premiums than the big ones who advertise on TV all the time. Someone has to pay for those adverts. Company X may not be on comparison websites but they pay a lot to advertise that fact instead!

Another factor is variance

Ok, so in our example above, you might expect on average to claim £1,000 every ten years, but what if you have a run of bad luck? You could end up claiming £2,500 in that ten year period!

Insurance is a game of risk and it is possible for an insurance company to have an ‘unlucky’ year where they actually lose money or at least fail to make a profit. The larger the company the better their risk is spread, and hence the more they can risk squeezing their margins.

As a result, you often find very small, specialist companies are not actually as competitive, particularly if you are a high risk customer (such as a teenaged driver). You should of course shop around, but you will often find it is the medium sized companies that you have never heard of who work out cheapest.