Insuring you get the best deal

Insurance. We all know we need it but rarely do we really think about it in detail. We just pay our premium and consider it a necessary evil.

Be it life, house, car, mortgage or travel, there’s an insurance policy which covers it. Only when there’s a death, an accident, a job loss, a fault or a failure do we realise just how vital insurance really is. Unfortunately, sometimes it’s only when things go wrong that you realise that the cheapest possible price isn’t always the best as your insurance is only as good as the small print.

I’d always suggest you look to shop around on a yearly basis looking for a cheaper deal, but you absolutely must make sure you replace like with like and still get the same level of cover.

If you do need to make a claim on your insurance, in a best case scenario your insurance company will pay with no quibbles, quickly and efficiently. But sadly it doesn’t always happen that way.

Too often consumers’ woes are added to by insurance firms who delay and dodge their responsibilities and hope the complexities of the system will put people off challenging their decisions.

If your insurance company does challenge your claim, and you are convinced that your policy cover means you should receive a payment, don’t be put off.

Make sure you follow the right process and if the response from your insurer isn’t satisfactory then you should make a formal complaint. These must be dealt with within eight weeks so ensure your letter or email is marked “complaint”.

If the problem isn’t resolved within that timescale - or is rejected - contact the Financial Ombudsman Service. Explain and document your complaint fully.

If your complaint is upheld, you’ll be awarded a sum that puts you back in your original financial position as a minimum, as the FOS can also tell an insurer to pay compensation on top.

Still unhappy? Well, the next stage could be the small claims court but it’s worth asking yourself it you’re really likely to get a different outcome.

All in all, it should go without saying that the best way to avoid problems with your insurance is to read the terms and conditions carefully first.

Remember and write to me with your consumer queries at askalex@which.co.uk