Take out insurance when and wherever you can – or you could end up paying a far greater price later.
In these tough financial climes where the cost of living is rising, the idea of splashing out on something that may never happen might not sound like the most pragmatic piece of advice if you’re watching your household spending.
But think again – because insurance could help you save a fortune in the long term if the worst does happen. To afford the essentials, all it takes is a little shrewd budgeting to be able to afford these top three insurance essentials:
Home Insurance
£136 – average cost of household insurance
£187 million – how much UK insurers pay out each day in claims
Breakages, flooding, and burglary – the list of threats to your home and its contents are numerous, so having no home insurance is potentially a ticking time bomb for your bank account.
It’s also worth noting that the cost of home insurance has dropped by 13% since 2010, making it more affordable than ever.
Budgeting Tip No.1 – Use online resources to locate a cheaper gas/electricity provider – switching could save you hundreds of pounds. Simple steps like direct debit and online paperless billing can also drive down costs further.
Breakdown Cover
4 out of 5 cars – how many cars the AA’s patrols are able to fix at the roadside
Every 9 seconds – how often an AA patrol rescues someone at the roadside
While most new car owners will enjoy a period of complimentary breakdown cover, the rest of us must plan for what to do when our car does inevitably break down; at best, breakdowns can be a mere nuisance but at worst, downright dangerous if you’re caught in icy conditions with no back-up plan.
With AA’s breakdown cover – which you can find over at http://www.theaa.com/
Budgeting Tip No. 2 – One of our biggest expenditures is the weekly shop. Consider comparing prices of the big supermarkets for the best deals, shopping for cheaper cuts of meat, choosing home brands, and exploiting customer reward schemes. And make life easier on yourself by doing your research online at home; thirty minutes of bargain scouting whilst watching Eastenders could reap real financial benefits.
Pet Insurance
1 in 3 pets need treatment by a vet each year
£300 – the average cost of a UK vet bill
£10,000 – how much on-going treatment can cost
It’s essential then to put enough aside each month to cover the cost of insurance for your pet if they should fall ill or be involved in an accident. There are four different types of insurance available – the lowest-costing option covers accidents-only while the priciest features life time cover. Choose the one that offers the best balance between peace of mind versus cost.
Remember, such insurance could save your pet’s life – while ensuring your wallet is protected from the worst.
Budgeting Tip No. 3 – Running up a debt on your credit card with a high interest rate? Then consider moving the entire balance to a Life of balance or 0% balance transfer card – such a move could see interest rates on any money owed fall substantially.
Sources:
http://www.henshalls.com/blog/2013/09/vital-figures-do-you-measure-up/ http://www.telegraph.co.uk/finance/personalfinance/insurance/buildingsandcontent/10083900/Home-insurance-falls-by-13pc-in-three-years.html
http://www.themoneyprinciple.co.uk/2013/how-to-make-the-most-of-falling-home-insurance-premiums/
http://www.confused.com/pet-insurance/articles/average-vet-bill-costs-300, http://www.which.co.uk/money/insurance/reviews-ns/pet-insurance/pet-insurance-types-of-policy/
http://www.which.co.uk/money/bills-and-budgeting/guides/ways-to-save-on-food/
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