Insurance World

You are ready for your dream holiday, but there is that one practicality left - insurance.

While there is no doubt that travel insurance is necessary, and not something with which you should do without, finding a policy which is not only cheap, but also offers the correct levels of protection for the activities on your vacation can be both daunting and boring.

With countless pages of policy small print and get-out clauses for the insurer, it can seem almost impossible to find what you want for a good price.

The majority of insurance policies do have reasonably comprehensive cover, and can often be purchased including dangerous sports such as skiing. However, the complications arise when it comes to deductibles and health situations, such as pre-existing problems.

For example, what happens if you do need to go to hospital in a foriegn country? Will the insurance company pick up the bill, or will you have to claim and pay at the time. This will not be suitable for a lot of travellers on a lower budget, but is the way that most policies work. There are many gaps and get-outs in travel insurance policies, and you will need to spot them in advance, should a problem arise.

Most policies cover trip cancellation, robbery, lost baggage, medical, dental and accidental death coverage, but you may also find emergency evacuation, insurance against delays, lost documentation and 24 hour travel assistance.

The key to finding the best deal is to shop around yourself - Don’t simply buy your travel insurance from your travel agent. Here are a few reasons why:

- The coverage will not be as good.
- The policy will be less flexible.
- It may duplicate areas that you are already insured for.

It may seem like a better deal at the time to buy your insurance from your travel agent, but remember that they are not specialised in this area, and will only be offering an out-of-the-box policy from some partner insurance company, which they will make money off.

As with most things, you are better off doing your research, and arranging it yourself.

When buying your policy from an insurance company:

- Get quotes from as many companies as you can.
- Read the small print. Does it cover your intended activities?
- Can you waive the pre existing condition exclusion.
- Find out what types of cancellation the insurer will not pay out for. Again, it comes to carefully reading the policy details (I know it’s boring, but it is necessary)
- Finally, if there is anything you need to know - Ask! There is no point in having the policy if you end up unable to claim.

Wishing you a fantastic trip, and an unused travel insurance policy!

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It was not too long ago when contracts were made on a handshake and a promise. Individuals were not particularly concerned with things like insurance because they relied upon the goodwill of their neighbor to compensate them for wrongful damage. For a variety of reasons, including an increase in the speed and cost of auto wrecks, auto insurance soon became an important purchase for responsible individuals. Not long after, the federal government mandated that auto insurance be carried, at least minimally, by all car owners. The increase in the need for auto insurance over the last 10 years has led to increases in the complexity of insurance, while at the same time, amplifying the need to be more cost conscious in auto insurance purchases.

Buying auto insurance today requires as much dexterity as buying the automobile itself. It is important to know the factors that an auto insurance company considers when offering quotes. This will allow you, as the consumer, to know what steps you need to take in order to qualify for a lower quote. The five easy steps to a lower insurance quote are:

1. Portray yourself as a ‘safe’ candidate: Insurance companies are interested in managing risk. Consequently they offer drivers who are less likely to get into wrecks or at a minimum into wrecks of less severity, a lower insurance quote.

-Maintain a clean driving record, free of traffic violations or accident claims.

-Install anti-theft devices in your vehicle.

-Attend a Drivers Safety Training program.

-Buy a ‘safe’ vehicle. The National Highway Traffic Safety Administration (NHTSA) and The Insurance Institute for Highway Safety together collect information on safety related aspects of different vehicles. Buy an automobile that is officially designated as ‘safe’.

-Park your vehicle in a garage.

2. Show your Credit worthiness: As a risk management entity, insurance companies are also worried about getting paid on time. If you can show yourself to be credit worthy, there is less risk of you not making your payments on time, thus warranting a lower rate.

-Maintain a good credit score and clear up any errors on your credit.

-Cut down on the total number of outstanding credit cards to 2 or 3.

3. Practice Financial Wisdom: The way in which you structure and pay for your policy can lower the risk that an insurance company faces with respect to you as a customer. By taking steps to lower their risk, you receive a lower insurance quote and policy.

-Buy an annual policy instead of a six monthly coverage to get you a lower rate that remains the same for a year.

-Opt for automatic payment deductions from your bank account or your credit card to avoid getting charged for mail payments.

-Increase your deductibles on comprehensive and collision policies to reduce on the rates.

-Get loyalty discounts by buying your home and auto insurance from the same company.

4. Assess your Insurance Needs accurately: This is obvious, the more coverage you get the more it will cost you. Add-ons are killers in the insurance business, strip your policy down to just the minimum of what you need.

-If your vehicle is not used much or you have an old car with little market value, opt for minimum liability alone. It will cost you less.

-After fulfilling the legal mandate on auto insurance, insure according to your needs alone.

5. Other wise things that you can do: There are a number of other considerations that go into your insurance quote. Some of them are not reasonable steps to take, while others you can do with little effort which can translate into substantial savings.

-If your car is used only for a particular purpose, make your agent aware of it, as this will limit the cost.

-Students that make good grades are often eligible for a discount.

-Give up smoking; it can help you get better quotes.

-Change your occupation if you can help. A delivery boy carries a higher risk than a storekeeper.