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6 Insurance Rip Offs As much as insurance is a vital requirement
to everyday life, it is also important to organise your finances so that
you do not over pay for the protection you receive. Below are 6 tips to
help significantly reduce your monthly costs while maintaining, or in some
cases improving the level of cover you actually receive.
Get a quick quote with Insurancewide TravelWizard  - Travel Insurance: Each year UK travellers waste over ?100 million
on over priced travel insurance policies sold by travel agents rather
than spend it on enjoying their holiday! The reason travel agents are
allowed to over charge is because they are not covered by the Financial
Services Authority. Insurers provide travel to the agents at cut prices
only for travel agents to add huge margins to the policy. To get a correctly
priced, regulated product do not use a travel agent.
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- Income Payment Protection: If you take out a loan you are also given the option to insure the repayments on the loan. This is
where banks make their money! Rather than use the bank's insurance products
use an income payment protection policy. An income payment protection
policy will insure up to 75% of your income which includes all your
debts! A single monthly payment is far less of a headache and will save
you pounds!
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- Motor Insurance: Insurance companies specialise in different 'risks'
of insurance.
For example, some are good at young drivers, some at high
risk drivers, and some at women drivers. The classifications are almost
endless. In addition to this, the insurance market is very fragmented.
Traditionally, to search for insurance you would use the Yellow Pages,
a broker, or a direct insurer to try and find the cheapest quote which
also delivers the greatest value for money. A broker would provide the
most complete search until the launch of direct insurers such as Direct
Line. Today over 60% of insurance policies are underwritten by direct
insurers such as Norwich Union Direct, Direct Line, Esure, and Admiral.
These companies do not allow brokers or intermediaries to quote their
rates.
When searching for insurance if you only use a broker you can only access
up to 40% of the market! Similarly, if you only use a direct insurer
you will only ever access 60% of the market. As a customer it is virtually
impossible to tell which one is good at your 'risk' and usually you
end up with 5 or 6 quotes from which you can then choose your insurer.
To overcome this problem, it is possible to profile yourself and find
the right type of insurers capable of giving you a competitive quote.
The MotorWizard? will take into account your individual circumstances
and the type of insurance required before directing you to the most
suitable insurer capable of offering the most competitive quotation.
The MotorWizard? contains brokers, direct insurers, and Intermediaries
on its panel accessing 95% of all motor insurers.
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- Mortgage Payment Protection: Most people do not think to take
out insurance when purchasing their mortgage. Some people still believe
the state aid package will help re-pay your mortgage. This is totally
untrue and will probably lead to the re-possession of your house. If
it is mentioned to you by your mortgage lender the astronomical price
will probably turn you away from the idea immediately. As with most
financial products, large companies do not make huge profits from the
product they provide but the additional products they sell you, such
as the products highlighted in this article.
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- Domestic Appliances: When you purchase new electrical goods
such as a new washing machine, dishwasher etc the retailer (Currys,
Dixons, Argos) will offer an extended warranty product. Again, the largest
margins are on the additional products sold. A customer who has just
spent ?1,000 on a fridge will want to look after such an investment.
Sales teams are in the perfect position to sell the customer additional,
high margin protection products.
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- Card Protection: All card providers from banks to credit serves
providers offer the chance to protect your card from theft and misuse.
The fee is usually around ?10 a card. You only need to have 5 or 6 cards
and you are paying ?50 to ?60 to protect your cards. It makes far more
sense to insure all your cards collectively. The administration on you
is substantially less, as is the cost. Most card protection companies
start protection for as little as ?15 a year!
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Get an Insurancewide Card Protection Plan quote
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All of the insurance products and services mentioned on this
page are introduced by Insurancewide.com Services Ltd, which is authorised
and regulated by the Financial Services Authority. Insurancewide?s service
is subject to its terms
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