More than 150 insurance companies offer thousands of life insurance products in the UK.
Choosing the right company and right product from this bewildering choice is challenging. Fortunately, there are some common sense guidelines that will help you narrow the field to a more manageable selection of companies and products.
Looking at the Cost
The UK life insurance business is highly competitive, but the industry tries to avoid price competition whenever possible. Instead, companies attempt to make their products sufficiently different from their competitors so that price is less of a factor in product selection.
However, there are ways you can keep your premium rates to a minimum without affecting the quality of your cover.
•Consider Term Life Insurance - Term Life Insurance is the cheapest form of life cover available and premiums are very competitive.
•Shop around - in particular, if you know exactly what type of cover you require and don’t need advice, you can reduce your premiums by applying through a discount life insurance broker such as Life Saver. These broker's discount the insurance companies standard premiums by rebating the majority of the commission paid to them as an agent for the company. This reduces your monthly payments below the premium you would pay by applying direct to the insurance company.
•Stop smoking - premium rates for smokers are 30-40% higher than for non-smokers. If you can or are thinking of quitting you will save hundreds on your premiums over the term of the policy.
•Only pay for the cover you need - If you are looking for term insurance and critical illness, you can make big savings by buying a combined policy. These only pay out one lump sum rather than the two that separate policies would pay, if you suffer a critical illness and then die.
Obviously, the cost of monthly premiums is going to be a major factor in your choice of insurer but, it should not be your only consideration.
Product Quality
There can be major differences between UK life insurance policies so it is important that you compare like with like and check the small print. This is particularly important if you are including extra’s such as Critical Illness Cover. Always read the Key Facts document carefully and look for some of the following benefits:
•Are the premiums Guaranteed? This means the premiums are guaranteed to remain the same throughout the term of your policy. This is opposed to `Reviewable´ premiums which, as the name suggests, are reviewed usually every 5 years and can increase dramatically.
•Check that the policy has terminal illness benefit included. This is a valuable extra which is now included in most Term Life Insurance policies for free and will pay the life insurance amount early if you suffer a terminal illness.
•Can the policy be written in trust? This will avoid any delay in the money going to your dependants and the risk of inheritance tax being charged on the benefit.
•Can waiver of premium benefit be included in your plan. This is a valuable extra which, if you become too ill to work for a number of months, will ensure your cover continues without you having to pay the premiums.
Claims History
No matter how good the policy it will all be for nothing if your insurer is difficult or obstructive if you should have to make a claim.The industry pays out over £166 million a day in pension and life insurance claims and all insurers have procedures in place to process claims on their policies.
Before taking out a policy it is advisable to contact your prospective insurer and ask about their claims history. Note their willingness to provide this information and the attitude promoted by their response. Do they look for reasons to pay claims or excuses to avoid them?
Financial Strength
When selecting or evaluating a UK life insurance company, a logical place to begin is by reviewing the ratings given by major insurance company rating services such as Standard & Poors and AM Best. In a rating, the rating company or agency expresses its opinion of the life insurance companies financial condition.
Saturday, July 18, 2009
Cheap Car Insurance Premiums in 5 Easy Steps
Although car insurance is compulsory, it's not necessary to pay more than you have to. A few simple steps combined with some time surfing for competitive car insurance rates really can save you hundreds.
Step 1 - Cut the Insurer's Risk
The easiest way to cut your car insurance premiums is to reduce the insurer's risk and accept a higher voluntary excess. An insurer's standard excess may be £100 but if you meet the first £250 of any claim, you'll see a reduction in your premium. This is because you're taking on more of the risk so you get a discount. But it's a gamble, be aware that you might have to meet the cost of a broken window after an attempted theft, then a bill for repairing bodywork damage after a car park crunch.
Step 2 - Security
Fitting security devices can also result in cheaper car insurance premiums. All major insurers insist on Thatcham rated security equipment, usually a minimum of an alarm. If you live in a high-risk area for car crime, it makes sense to fit extra security. It saves you money when your insurance renewal is due and gives you extra peace of mind.
Step 3 - Annual Mileage
If your annual mileage is 5,000 miles or less, ask insurer's if they offer discounts for agreed mileage restrictions.
Step 4 - Named Drivers
Adding a named driver to your policy can increase or reduce your premiums depending upon the named drivers age, sex and driving record. Adding a young driver will certainly increase your premiums, particularly with a limited or poor driving record. However, adding a driver over 30 years old with a long and clean driving record can cut premiums, particularly if the named driver is female!
Step 5 - Shop Around
Step 1 - Cut the Insurer's Risk
The easiest way to cut your car insurance premiums is to reduce the insurer's risk and accept a higher voluntary excess. An insurer's standard excess may be £100 but if you meet the first £250 of any claim, you'll see a reduction in your premium. This is because you're taking on more of the risk so you get a discount. But it's a gamble, be aware that you might have to meet the cost of a broken window after an attempted theft, then a bill for repairing bodywork damage after a car park crunch.
Step 2 - Security
Fitting security devices can also result in cheaper car insurance premiums. All major insurers insist on Thatcham rated security equipment, usually a minimum of an alarm. If you live in a high-risk area for car crime, it makes sense to fit extra security. It saves you money when your insurance renewal is due and gives you extra peace of mind.
Step 3 - Annual Mileage
If your annual mileage is 5,000 miles or less, ask insurer's if they offer discounts for agreed mileage restrictions.
Step 4 - Named Drivers
Adding a named driver to your policy can increase or reduce your premiums depending upon the named drivers age, sex and driving record. Adding a young driver will certainly increase your premiums, particularly with a limited or poor driving record. However, adding a driver over 30 years old with a long and clean driving record can cut premiums, particularly if the named driver is female!
Step 5 - Shop Around
The biggest car insurance savings come from shopping around. This has been made much easier with the explosion of the internet. There can be massive differences between the lowest and highest car insurance quotes for exactly the same car and driver(s). Start off using good comparative online car insurance quote sites like Moneysupermarket and Screentrade, take their best quotes and go direct to the cheapest car insurance companies for more specific quotations.
Tuesday, July 14, 2009
How to Buy Classic Car Insurance
Collector Car Insurance and Classic Car Insurance
If you are fortunate enough to own a classic car - or any collectible automobile - then you want to ensure that your luck does not run out because of having inadequate insurance coverage. Call it covering your butt - or covering your "asset" - but by all means, call one of the major providers such as American Collectors, Haggerty, or Parish Heacock insurance companies and let them put you in the driver's seat in terms of professional protection of your cherished automotive investment.
How to Kick the Tires on Classic Car Insurance
The whole idea of insurance is that it needs to do what you expect of it in an emergency, when the rubber really hits the road. And classic car insurance is as different from conventional auto insurance as, well, a classic car is from your run of the mill generic vehicle.
When you buy a classic car insurance policy, you are essentially purchasing protection for those times when - God forbid and knock on wood it doesn't happen - disaster strikes in the form of a fire, a collision, or an act of theft or vandalism. Just as we now have modern airbags to save us in the event of a crash, we also have collector's car insurance, to protect us with adequate moneybags when calamity throws a wrench in the works.
The time you invest in choosing the right classic car insurance coverage is well worth the value and peace of mind that a quality collector's insurance policy delivers for owners of classic motor cars.
The Nuts and Bolts of Classic Car Insurance Coverage
Collector car insurance is not the same as the insurance you buy for normal coverage of your daily transportation. Collector car insurance, or classic car insurance, is made especially for the needs of the car collector. And while ordinary insurance does offer some protection, no matter what you drive, it can leave you high and dry in the event of a loss that it not effectively covered by the terms of the insurance contract.
For example, you may have a garage-kept Cadillac Sedan DeVille with swooping fins your grandparents bought for $7,000 brand new back in the 1960s. But dealers have offered you three times that much, and you saw another one sell at an auto show for $35,000. If you don't have special collector car insurance or classic car insurance, and the car is totaled, you will be lucky to get $7,000 for it. With depreciation calculated in, the insurance statisticians may decide that it is worth only half that much, or less, and you could wind up with two or three grand in exchange for your dream machine.
Stipulations or requirements normally encountered while shopping for collector car insurance or classic car insurance:
A decent driving record.
At least 10 years driving experience
No teen drivers on the policy or drivers with poor driving records
Secure and out of the weather garage
Proof that you have another car for daily transportation
Collector vehicle insurance is sometimes limited by the age of your car, and if your car is too young it may not qualify for a particular policy.
Limited mileage. You probably don't want to drive your creampuff car all the time, and your insurance company doesn't want you to either. Mileage limits have increased recently, though, so if you can live with 250 miles a month you're probably okay.
Coverage with collector car insurance or classic car insurance: Three kinds of value are important to understand when buying your policy. 1) Actual cash value: This is what you usually get with ordinary insurance, and is based on replacement cost minus depreciation.
2) Stated value:
The insurance company pays up to the stated value of the car, but may not guarantee the full stated value. And deductibles of up to $1,000 usually apply.
3) Agreed value:
In most jurisdictions, those who provide collector car insurance or classic car insurance are allowed to insure for a value that you and your insurer agree upon. And for most autos, there is no deductible. If your $100,000 vintage Rolls get trashed, you get a check for 100 grand, plain and simple - which is exactly why collectors use special classic car insurance coverage.
Do a periodic review of your coverage limits, because classic car prices are rising. What you insured your cherry classic for ten years ago may be a fraction of what it's worth today. And if you are restoring a vehicle, ask your agent to give you appropriate insurance. There is no need to pay extra based on mileage statistics, if your car is up on blocks with no engine inside it. And as the car's value increases thanks to your hard work of restoring it, you should raise the coverage to keep up with the added value of the restoration.
Keep all your receipts and paperwork - for everything from parts and labor to expenses incurred to take it to a classic car show - so that you can document the total investment your collector's car represents. And take photos and keep them updated, for the same reason. And Last But Not Least: Special Savings Opportunities
As long as you meet the criteria in terms of how you use and take care of the car, you can usually buy a policy.
Traditional insurers will either refuse coverage, offer only a replacement value based on the nuts and bolts (minus heavy depreciation) of the car, or will charge you a prohibitive amount for the premium. But many collectors find that special collector's coverage saves them money - as much as half - while insuring them for higher limits, sometime three or four times what a traditional company gave them.
Yes, it's possible to get collector's insurance coverage for full market value for your car, and save up to 50 percent off of the premium you'd pay with ordinary insurance. That makes classic car insurance a must-have for any serious car buff.
Below is information about three of the most reputable and dependable collectors and classic car insurance companies in the USA (All information listed below subject to change, please contact the insurance companies listed to be sure.):
Hagerty Insurance P.O. Box 1303 Traverse City, MI 49685-1303
Email: auto@hagerty.com Toll Free: 800-922-4050
Qualifications:
Similar to the others listed below, but please contact Haggerty for details.
American Collectors Insurance P.O. Box 8343 Cherry Hill, NJ 08002 Email: info@americancollectors.com Toll Free: (800) 360-2277 Qualifications (subject to change or regional laws so check with the company for specific up-to-date information).
At least 15 years old
Garage-kept
Driven on a limited, pleasure-only basis (up to 5,000 annual miles - available in most states)
You may also qualify by:
Having at least 10 years driving experience
Having a good driving record
Having at least one "regular" vehicle for every licensed driver in the household You may request a policy application either directly from American Collectors Insurance or through your local insurance agent (rates are the same either way).
Parish Heacock Classic Car Insurance P.O. Box 24807 Lakeland, FL 33802-4807 Email: info@parishheacock.com Toll free: (800) 678-5173 Qualifications (subject to change or regional laws so check with the company for specific up-to-date information).
Each household member of driving age must have at least 10 years driving experience or be excluded.
Each household member must have a regular use vehicle less than 15 years old that is insured with liability limits equal to or higher than the limits being applied for on the collectible vehicle.
All licensed members of household and any other drivers of the vehicle must be listed on the application.
Maximum of two accidents or violations in the household, maximum of one per licensed household member in past 3 years. No major violations permitted in past 5 years.
A Driver Health Questionnaire must be completed for all drivers over 70 years old.
Auto must be stored in a locked permanent garage facility when not driven.
Auto may not be used for commuting to or from work or school, used for business purposes or as a substitute for another auto.
Autos not covered while on a racetrack or when being used for: racing, speed, driver's education, or timed events.
Must display pride of ownership: well maintained, in restored or well-preserved condition.
Vehicles under restoration must be stored at residence or a restoration shop, with a target date for completion. Agreed value coverage is not available on cars under restoration. Eligibility subject to company review.
Replica Vehicles and Pro Street vehicles are subject to company review.
Trucks and Jeeps must be over 25 years old, and not be used for towing, hauling, off-road or utility use.
Generally do not require appraisals, but may ask for one if vehicle value is difficult to determine.
Michael Modica is an avid musclecar fan. He is the webmaster of the world's leading Second Generation Camaro resouce, http://www.nastyz28.com
If you are fortunate enough to own a classic car - or any collectible automobile - then you want to ensure that your luck does not run out because of having inadequate insurance coverage. Call it covering your butt - or covering your "asset" - but by all means, call one of the major providers such as American Collectors, Haggerty, or Parish Heacock insurance companies and let them put you in the driver's seat in terms of professional protection of your cherished automotive investment.
How to Kick the Tires on Classic Car Insurance
The whole idea of insurance is that it needs to do what you expect of it in an emergency, when the rubber really hits the road. And classic car insurance is as different from conventional auto insurance as, well, a classic car is from your run of the mill generic vehicle.
When you buy a classic car insurance policy, you are essentially purchasing protection for those times when - God forbid and knock on wood it doesn't happen - disaster strikes in the form of a fire, a collision, or an act of theft or vandalism. Just as we now have modern airbags to save us in the event of a crash, we also have collector's car insurance, to protect us with adequate moneybags when calamity throws a wrench in the works.
The time you invest in choosing the right classic car insurance coverage is well worth the value and peace of mind that a quality collector's insurance policy delivers for owners of classic motor cars.
The Nuts and Bolts of Classic Car Insurance Coverage
Collector car insurance is not the same as the insurance you buy for normal coverage of your daily transportation. Collector car insurance, or classic car insurance, is made especially for the needs of the car collector. And while ordinary insurance does offer some protection, no matter what you drive, it can leave you high and dry in the event of a loss that it not effectively covered by the terms of the insurance contract.
For example, you may have a garage-kept Cadillac Sedan DeVille with swooping fins your grandparents bought for $7,000 brand new back in the 1960s. But dealers have offered you three times that much, and you saw another one sell at an auto show for $35,000. If you don't have special collector car insurance or classic car insurance, and the car is totaled, you will be lucky to get $7,000 for it. With depreciation calculated in, the insurance statisticians may decide that it is worth only half that much, or less, and you could wind up with two or three grand in exchange for your dream machine.
Stipulations or requirements normally encountered while shopping for collector car insurance or classic car insurance:
A decent driving record.
At least 10 years driving experience
No teen drivers on the policy or drivers with poor driving records
Secure and out of the weather garage
Proof that you have another car for daily transportation
Collector vehicle insurance is sometimes limited by the age of your car, and if your car is too young it may not qualify for a particular policy.
Limited mileage. You probably don't want to drive your creampuff car all the time, and your insurance company doesn't want you to either. Mileage limits have increased recently, though, so if you can live with 250 miles a month you're probably okay.
Coverage with collector car insurance or classic car insurance: Three kinds of value are important to understand when buying your policy. 1) Actual cash value: This is what you usually get with ordinary insurance, and is based on replacement cost minus depreciation.
2) Stated value:
The insurance company pays up to the stated value of the car, but may not guarantee the full stated value. And deductibles of up to $1,000 usually apply.
3) Agreed value:
In most jurisdictions, those who provide collector car insurance or classic car insurance are allowed to insure for a value that you and your insurer agree upon. And for most autos, there is no deductible. If your $100,000 vintage Rolls get trashed, you get a check for 100 grand, plain and simple - which is exactly why collectors use special classic car insurance coverage.
Do a periodic review of your coverage limits, because classic car prices are rising. What you insured your cherry classic for ten years ago may be a fraction of what it's worth today. And if you are restoring a vehicle, ask your agent to give you appropriate insurance. There is no need to pay extra based on mileage statistics, if your car is up on blocks with no engine inside it. And as the car's value increases thanks to your hard work of restoring it, you should raise the coverage to keep up with the added value of the restoration.
Keep all your receipts and paperwork - for everything from parts and labor to expenses incurred to take it to a classic car show - so that you can document the total investment your collector's car represents. And take photos and keep them updated, for the same reason. And Last But Not Least: Special Savings Opportunities
As long as you meet the criteria in terms of how you use and take care of the car, you can usually buy a policy.
Traditional insurers will either refuse coverage, offer only a replacement value based on the nuts and bolts (minus heavy depreciation) of the car, or will charge you a prohibitive amount for the premium. But many collectors find that special collector's coverage saves them money - as much as half - while insuring them for higher limits, sometime three or four times what a traditional company gave them.
Yes, it's possible to get collector's insurance coverage for full market value for your car, and save up to 50 percent off of the premium you'd pay with ordinary insurance. That makes classic car insurance a must-have for any serious car buff.
Below is information about three of the most reputable and dependable collectors and classic car insurance companies in the USA (All information listed below subject to change, please contact the insurance companies listed to be sure.):
Hagerty Insurance P.O. Box 1303 Traverse City, MI 49685-1303
Email: auto@hagerty.com Toll Free: 800-922-4050
Qualifications:
Similar to the others listed below, but please contact Haggerty for details.
American Collectors Insurance P.O. Box 8343 Cherry Hill, NJ 08002 Email: info@americancollectors.com Toll Free: (800) 360-2277 Qualifications (subject to change or regional laws so check with the company for specific up-to-date information).
At least 15 years old
Garage-kept
Driven on a limited, pleasure-only basis (up to 5,000 annual miles - available in most states)
You may also qualify by:
Having at least 10 years driving experience
Having a good driving record
Having at least one "regular" vehicle for every licensed driver in the household You may request a policy application either directly from American Collectors Insurance or through your local insurance agent (rates are the same either way).
Parish Heacock Classic Car Insurance P.O. Box 24807 Lakeland, FL 33802-4807 Email: info@parishheacock.com Toll free: (800) 678-5173 Qualifications (subject to change or regional laws so check with the company for specific up-to-date information).
Each household member of driving age must have at least 10 years driving experience or be excluded.
Each household member must have a regular use vehicle less than 15 years old that is insured with liability limits equal to or higher than the limits being applied for on the collectible vehicle.
All licensed members of household and any other drivers of the vehicle must be listed on the application.
Maximum of two accidents or violations in the household, maximum of one per licensed household member in past 3 years. No major violations permitted in past 5 years.
A Driver Health Questionnaire must be completed for all drivers over 70 years old.
Auto must be stored in a locked permanent garage facility when not driven.
Auto may not be used for commuting to or from work or school, used for business purposes or as a substitute for another auto.
Autos not covered while on a racetrack or when being used for: racing, speed, driver's education, or timed events.
Must display pride of ownership: well maintained, in restored or well-preserved condition.
Vehicles under restoration must be stored at residence or a restoration shop, with a target date for completion. Agreed value coverage is not available on cars under restoration. Eligibility subject to company review.
Replica Vehicles and Pro Street vehicles are subject to company review.
Trucks and Jeeps must be over 25 years old, and not be used for towing, hauling, off-road or utility use.
Generally do not require appraisals, but may ask for one if vehicle value is difficult to determine.
Michael Modica is an avid musclecar fan. He is the webmaster of the world's leading Second Generation Camaro resouce, http://www.nastyz28.com
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