The idea of freedom that is intertwined with our image of adulthood is one of the most exciting things about striking out on your own. You can own property or a car and you actually have a choice when it comes to where you go on holiday. But for each life choice you make, there is an equal responsibility. In this case, can you legally and responsibly take part in the above roles and activities without the correct insurance?
If this is your first face to face with the idea of buying insurance, we have compiled a list to take you through the essential (and sometimes legally obligated) insurance policies.
Home Insurance
Imagine saving for years to be able to buy your own house, only for a disastrous event like a fire or flood to rob you of your home and investment. A home insurance policy ensures that you have financial support should the worst happen, giving you peace of mind.
If you decide to rent a home, you won’t need a home insurance policy, as it isn’t your responsibility to safeguard your landlord’s property. However, whether you rent or buy you should still purchase a contents insurance policy. Contents insurance protects your possessions such as electronics, furniture etc. against risks like theft or fire. Those who rent will often make the mistake of thinking that their landlord’s home policy will protect their contents.
Travel Insurance
Holidays are supposed to be relaxing! So if you lose your spending money, have a personal possession like a phone or camera stolen or suffer an injury and end up stuck in a hospital bed for weeks, that can put a real dampener on your good time.
The best thing about a travel policy is it can be shaped to suit your destination and planned activities. Going to a country like the U.S. where medical bills are notoriously high? You might want to consider having a policy with a good deal more coverage for hospital bills. Or maybe you’re visiting a city where tourists are frequently targeted for theft? It might be a good idea to invest a little extra money in a policy that covers all your possessions with little to no excess.
Car Insurance
You cannot legally drive your car in the UK without a car insurance policy, so this one really is a no-brainer. If you are caught in an accident without insurance, you could be liable for a maximum £5000 and 6 points on your license. There are different types of coverage for you to choose from:
Third Party Insurance
This is the minimum requirement for car drivers. If you cause damage to someone else’s vehicle, the insurance policy will pay for the damage caused to the third party, but not your vehicle.
Third Party Fire & Theft
A step up from third party cover, that included protection to your vehicle in instances of damage caused by fire or if it is stolen.
Comprehensive
The most expensive policy of the three, but arguably the most useful, comprehensive covers you against most instances of damage to your car, as well as any damage you cause to another’s vehicle or property.
Which one you choose will probably depend on the age and condition of your car, as well as your financial situation.