• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Finance Girl

Digestible finance news for all

  • Green /
  • Student /
  • Business /
    • / Employment
  • Shopping /
    • / Motoring
  • Home /
  • Money Advice /
    • / Making Money
    • / Saving Money
    • / Debt
    • Loans
  • Investing /
    • / Alternative
  • Travelling /
  • Retirement /
  • Property /
  • Life /
    • / Mental Health
    • / Eat & Drink
    • / Manchester
You are here: Home / Smart Money / Insurance Matters

Insurance Matters

by Leave a Comment

Photo credit Flickr
Photo credit Flickr

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/breakdown-cover – you can choose a policy that matches your budget – from roadside cover costing just £39 a year to £99 for additions such as national recovery and home starting if your car should breakdown in your driveway.

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/how-to-plan-an-effective-budget/five-top-tips-for-balancing-your-budget-/

http://www.which.co.uk/money/bills-and-budgeting/guides/ways-to-save-on-food/

 

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)

Related

Filed Under: Smart Money

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

CommentLuv badgeShow more posts

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Julie Cheung / Finance Girl

Manchester blogger with an interest in personal finance, investing and mental health.




☆ Current Favourite Reads

☆ Top Finance Book Picks

   

☆ Get Cashback Shopping Online ☆

With over 3,800 retailers including M&S, Waitrose, Argos, Expedia, Amazon and eBay!

Read how I made £521 on Topcashback here.

Recent Posts

  • How To Save Money When Selling Your Home 
  • 5 tips for Networking in a small town
  • Thousands of people are preparing for a comfortable, financially secure retirement. You can, too, with the six retirement planning tips
  • 3 renewable home investments to save you money
  • 3 days out you can do on a budget
  • Is car finance a better option than buying outright?
  • 5 freelance jobs you can take on for extra cash
  • 5 great vegan gifts on a budget
  • How Entrepreneurship Is Changing the Landscape of UK Housing – Reviewing Concept Capital Group Ltd
  • Car Theft: How to Protect Your Car
  • The Only Two Books You Need To Get Started In Personal Finance and Investing
  • The Connection Between Cryptocurrency and Playing Games

Invest in Gold and Silver

Read my post: Should You Invest In Gold?

Footer

ABOUT

CONTRIBUTE

CONTACT

RESOURCES

FOREX TRADE PLAN

Copyright © 2018 Julie Cheung
 

Loading Comments...