insurance
4th April 2011: Mike Powell, Insight Analyst, General Insurance
There are many changes you may wish to make to your home insurance contents policy to account for your newborn baby.
Firstly check your contents ‘sum insured’ limit to ensure you’re covered for all the nursery furniture and linen, sterilisation equipment and clothes as well as baby pushchairs as these can be expensive items to replace in the event a burglary for example.
A personal possessions feature under a home contents insurance policy provides cover for items that are taken outside of the home. The number of items that are needed with a new born baby can seem daunting - particularly when you decide go out for the day. Consider what you’ll need to take with you when you are visiting your friends or family or even just going to the baby clinic? You may have to take a pram or pushchair, some spare clothes, baby changing mats, bottles, dummies and nappies. Add up the total value of these items taken outside of the home on a regular basis and the costs could run into hundreds of pounds so it’s important to check if you’re covered for them in case they get lost or stolen.
Our research shows that:
- 18% of home contents policies provide cover for personal possessions as a standard benefit.
- 81% of home contents policies provide cover for personal possessions as an optional extension, subject to the payment of an additional premium.
- 1% of home contents policies do not provide personal possessions cover
Personal possessions limits - It is important to check any specific policy limits under personal possessions cover, particularly for items that are left in your car. Most comprehensive car insurance policies provide cover for ‘personal belongings’ that are kept in the car, but typically policy limits range from £100 - £200, which may not be enough for all your new baby’s things. The cover provided under personal possessions within a home contents policy is typically higher.
Our research shows that:
- 32% of home contents insurance policies provide cover for personal possessions in a car up to the limit that is selected by the policyholder so if this applies to you, check the limit allows for the additional items you’ll have in the car for your new baby.
- 12% of home contents insurance policies provide less than £1,000 for personal possessions kept in a car.
- 2% of home contents insurance policies do not provide any cover for personal possessions in a car.
It’s worth checking policy exclusions because typically items that are stolen are only covered if they are hidden from view within the vehicle in a locked boot or glove compartment.
As your baby gets older and start crawl and walk, the chances of accidents happening naturally rises. It is not uncommon for toddlers to accidently knock over an expensive ornament or vase, break the TV or spill drinks onto the carpet. These could then need replacing or cleaning which could be expensive. An accidental damage feature pays out if an item is damaged accidentally within your home or the home boundaries set by your insurer. The boundaries could for example include your garden.
Our research shows that:
- 17% of policies provide cover for accidental damage as a standard benefit.
- 3% of home contents policies do not provide accidental damage cover.
- 80% of policies provide cover for accidental damage as an optional extension, subject to the payment of an additional premium.
There are many policies in the market today which are available directly via your bank or buidling society or through the various comparison websites. Our Star Ratings can help narrow down selections. New mums may wish to think about 4 or 5 Star rated policies as these generally provide a higher level of features of benefits than 1 or 2 Star ones.
4th April 2011: Mike Powell, Insight Analyst, General Insurance
The number of travel insurance policies available today is vast. In fact there are 800 annual and single trip policies which are now offered in the marketplace. Travelling with babies and children brings many challenges and rewards and there are some features you may wish to consider including should something go wrong en route or while you’re away.
Medical expenses - One of the main benefits of a travel insurance policy is the cover provided for medical expenses. Our research of annual and single trip policies shows that:
- 8% of annual trip and 13% of single trip travel policies provide less than £5 million for medical expenses
- 92% of annual trip and 87% of single trip travel policies provide £5 million or more for medical expenses
£5 million worth of expenses may be adequate for most countries but t It may be therefore, advisable for mums who are travelling to the USA with their new born baby to consider opting for a higher medical expenses limit.
Baggage cover - The cover provided for your ‘baggage’ is worth bearing in mind given the amount of extra items needed when taking a new born baby abroad. The cover varies enormously so it’s worth checking how much the items you’re taking with you add up to and so what amount of cover you’ll need.
Our research shows that:
- 79% of annual trip and 75% of single trip travel insurance policies provide £1,500 or more in total for each insured person for their baggage.
- 14% of annual trip and 19% of single trip travel insurance policies provide less than £1,500 in total for each insured person for their baggage.
- 7% of annual trip and 6% of single trip travel insurance policies do not provide any cover for ‘baggage’.
A word of caution, remember to check the policy wording for specific limits for each single item, as these can typically range from £50 to £750. Also remember to check not only the item limit but also the definition of ‘valuables’, as these vary between insurance providers.
Baggage delay - If your baggage is lost or delayed during transit, you will need to buy emergency items for not only the baby but for yourself. These costs are usually covered by a travel insurance policy, but the cover provided varies between insurance providers.
Our research shows that:
- 55% of annual trip and 48% of single trip travel insurance policies provide £150 or more for each insured person towards the costs of emergency purchases
- 10% of annual trip and 13% of single trip travel insurance policies do not provide any cover for emergency purchases
- 34% of annual trip and 39% of single trip travel insurance policies provide less than £150 for each insured person towards the costs of emergency purchases
Finally as your family grows, your needs will change so you may wish to think about whether an annual policy is suitable or if a single trip policy may be more effective. Many current accounts now have travel insurance included as one of the benefits so remember to check with your bank what the cover is to ensure you're not doubling up on cover.
4th April 2011: Mike Powell, Insight Analyst, General Insurance
The new arrival of your little one means it’s a good time to review your car insurance policy. There are many features you may wish to now take into consideration which would not necessarily have been important prior to being a new mum.
There are many ways you can buy car insurance nowadays but bear in mind that the initial quotation you receive may not include some of the features you’ll need as a new mum.
Child car seat cover – It’s illegal to travel with an infant without securing them into a car seat and the costs of replacing a child car seat can run into hundreds of pounds so it’s important to have some protection under your car insurance. Our research shows that the type and level of cover provided for the replacement of a child car seat following an accident, fire or theft varies widely.
- 44% of policies do not provide any cover for the replacement of a child car seat
- 20% of policies provide £100 per seat toward replacement costs
- 27% of policies provide full replacement costs even if the car seat was not damaged
Courtesy Car - Being without a car could cause major disruptions and problems for day to day life. If your own car was damaged in an accident and needed to be repaired, how would you cope with getting to the baby clinic or hospital for regular checkups or simply visiting friends or family?
- 97% of comprehensive car insurance policies include cover for a courtesy car as standard or as an optional benefit that you can include once your baby is born. There may be an additional charge to do this so it’s worth checking with your insurer.
One thing to examine more closely is the type of courtesy car provided. Typically, most courtesy cars that are available are small hatchbacks so if you think you’ll need a larger vehicle for practical reasons or you simply want to drive a car that is more comfortable, you need to check whether your policy provides the option to enhance the courtesy car. Our research shows that:
- 79% of comprehensive car insurance policies do not provide an enhanced courtesy car option.
- 17% of comprehensive policies provide an optional extension of cover to enhance the courtesy car, subject to the payment of an additional premium.
- 4% of policies provide an enhanced courtesy car as standard.
Accident transport - One of the most important areas of a comprehensive car insurance policy for new mothers to consider is what help and assistance they would receive if their car was involved in an accident. For example, if the car was not driveable following an accident, how would you and your baby get home or to a safe place?
A number of policies include cover for any costs that are incurred for overnight hotel accommodation or public transport fares but these would still need to be paid for upfront. There are however, a number of policies that also provide a transportation service which will take the policyholder and their passengers away from the scene of the accident to a safe place, to their intended destination or back home.
Finally, as your baby grows, it's a good idea to check your policy details regularly to make sure you're getting the most out of your policy and are insured for what you need. Our Star Ratings can help you see at a glance the level of cover provided. In the main, new mums should think about 4 or 5 Star rated policies as these provide a more comprhensive level of cover and features than 1 or 2 Star rated ones.
Michael Powell, Insight Analyst, General Insurance
It’s likely that this early snowy weather will have caught many of us off guard. Before it starts to get more severe, check your home insurance policy for ‘home emergency cover’. At least then you can be assured that in an emergency, help is available so things can get back to normal as quickly as possible.
Under home emergency, cover is provided towards any callout charges made and the cost of labour and materials used in a repair. Examples of emergencies that may be covered by this feature include the following:
- Blockages in the toilet waste pipes
- Plumbing problems related to leaking pipes, blocked drains, water tanks or leaking radiators
- Failure of the central heating system or boiler
- Failure of gas or electricity at your home
- Failure of the hot water system
Home emergency cover is only provided by 12.5% of policies as standard and just under half do not offer this feature at all. So if this area is important to you, check your policy details now. 38% of policies do have this as an optional feature so you may be able to add it on to your policy but this usually has an associated charge which varies from provider to provider.
It's also worth noting that the majority of policies (72%) include a 24 hour emergency helpline, to organise emergency repairs by a qualified tradesman, however you may be responsible for the costs involved for the repair. With the forecast showing more snow and thundery showers, it might be worth checking the details of this and putting it in a handy place.
Note: Our analysis was conducted using our Aequos Online product database which currently holds the details for 296 standard, UK home contents insurance policies.
Brian Brown, Head of Insight and Research
With over 500 home insurance policies in the market today, it can be difficult to determine where to start if you want to bring your premium down without compromising on the level of cover you have.
Our research encompasses 297 buildings insurance policies and 298 contents insurance policies across the whole market and we've identified several ways to get a discount without impacting on your actual cover.
- Go online - 19% of policies give a discount for online purchases via the insurer’s website
- Buy buildings and contents at the same time - 85% of policies give a discount if both buildings and contents insurance cover is purchased from the same insurer at the same time
- Tell the insurer if you haven't made any claims - 67% of policies offer a ‘no claims discount’ if you do not make a claim
- Fit an alarm - 69% of contents policies offer discounts for alarms fitted
- Fit smoke detectors - 22% of contents policies offer discounts for smoke detectors fitted
- Fit locks on your windows and doors - 64% of contents policies offer discounts for approved door and window locks
- Join your local Neighbourhood Watch scheme - 43% of contents policies offer discounts if you are a member of a Neighbourhood Watch programme. Contact your local council for more information.
- Pay by direct debit - 30% of providers do not charge extra for payments by monthly direct debit which would help spread the premium at no additional cost
If you're still unsure which policy best suits your needs, you can use our Star Ratings as a guide to help your choose the overall level of features and benefits offered. Policies offering a basic level of features and benefits would be rated as 1 Star and those with the most comprehensive range of benefits a 4 or a 5 Star. Alternatively, compare your policy features with another policy to see the difference in cover provided.
02 February 2012
Owning multiple cars can be useful in terms of convenience for you and your family, as there are no restrictions on when and where any of you can travel.
However, owning multiple cars can have its disadvantages too, such as having to organise and pay for multiple MOTs, road taxes and of course, car insurance policies.
As a result, some car insurers have taken steps to help soften the pain of organising multiple car insurance policies by introducing multicar policy schemes.
The main advantage of a multicar policy is very simple - one insurer will insure all your cars together and you will receive a discount for doing so without sacrificing the no claims bonus of any driver on the policy.
These policies effectively allow each person insured to earn their own no claims bonus individually. If someone was to make a claim, it only affects the person involved.
Multicar insurance –cover levels provided
Analysis of every multicar insurance policy on the market shows that only 28% of comprehensive car insurance policies have a multicar scheme available.
However, it’s important to ensure that any multicar policy you choose offers the level of cover and features and benefits which you need in addition to the unique benefits identified above.
A majority (88%) of multicar insurance policies will provide a courtesy car as standard, while the other 12% offer one as an optional extra.
Another feature you may consider when taking out a comprehensive car insurance policy is whether your insurer provides transportation from the scene of a road accident for you and your passengers back to your home or your final destination.
This feature is useful for every person on your multicar policy to have, and our data shows that 70% of multicar insurance policies will provide transport from the scene of an accident.
Legal cover and advice is often overlooked on most people’s car insurance policies.
Access to a legal cover helpline may not seem like much of a benefit, but it does mean the insurers’ legal team will advise on the best action to take if you need any legal advice on what to do or where you stand
Our data shows that only 37% provide this legal helpline as standard, while 55% offer this feature as an optional extra.
Legal costs is another feature to consider, as your insurer would pay your legal costs if you were in court charged for an offence against the Road Traffic Act or for damage caused to a third party’s property.
Our data shows that 48% of multicar insurance policies provide legal costs up to the amount you agree with your insurer, while the rest give a set amount of £5,000,000 to cover your legal fees.
These are just a few of the features that motorists expect to see on their car insurance policy and as highlighted, many multicar insurance policies provide the same level of coverage as standard policies, despite the discount and convenience you receive.
If you are still considering your options, why not read our guide to car insurance? Alternatively, use our Star Ratings tool to see the level of cover and benefits provided by your current policy and compare it to others on the market.
02 February 2012
22% of drivers are worried about driving at night and being in an accident, according to research from Santander.
With an average of just 8 hours of sunlight a day and temperatures rarely exceeding 8 degrees centigrade during the first few months of the year, conditions on the roads can often be treacherous.
However, if you are unlucky enough to be injured in a car crash then there are a few features that can be found on a car insurance policy that could provide financial compensation if you are unfortunate enough to be seriously injured.
Injuries suffered in car crashes are covered under car insurance policies
Your insurer will pay out if you are injured in a serious car accident while in any private vehicle, including if you were to lose a limb or go blind. If you were to be killed in a fatal car crash, the money would go to your next of kin.
Our data shows that 81% of car insurance policies provide this feature as standard, while 10% offer cover as an optional extra.
If you were to be disabled from an injury sustained from a car crash then you could be entitled to a sum of money, depending on the level of cover you have. However, it is important to remember the amount can vary from policy to policy.
Our data shows that 43% of car insurance policies will pay out up to £5,000, while 10% will only offer £2,000 compensation.
If you are worried about driving at night during the winter months and potentially being involved in an accident, then your car insurance policy can offer a range of other features to give you peace of mind.
01 February 2012
Our research shows that 49% of people do not fully understand all the features of the financial products that they own, while 23% of people are anxious about buying a financial product that may not be right for them.
Choosing a financial product can be very confusing as there are often huge amounts of variation between the financial products in terms of the level of cover and benefits they offer.
Picking a financial product with the right level of features and benefits for you is essential, whether you are looking to insure your car or home, or buy a product to safeguard your dependants’ financial security.
It is also a risky game choosing a financial product solely on price or interest rate, as there is a higher probability that it may be inappropriate for you, and the only way to discover whether you made the right or wrong decision is when it is too late.
Using Star Ratings
Our latest release of Star Ratings aims to help you base your financial decisions on the features and benefits they provide, rather than solely on price, and to ensure you have a better understanding of the financial products on offer.
The key is to look for the right level of cover for you depending on your circumstances – whether this happens to be a 1 Star rated financial product that has basic functionality or a more comprehensive 4 or 5 Star rated product.
Alongside our new 2012 Star Ratings, we have also launched a new Star Ratings Centre which can help you find products with the level of features and benefits that you’re looking for.
