RUN FOR COVER
HARVEY JONES LOOKS AT WISE WAYS TO INSURE YOUR HOME, CAR, HOLIDAYS AND PETS
NOBODY likes paying for insurance, but few of us want to imagine what will happen if disaster strikes and you have no protection.
If you are a driver, motor insurance is a legal obligation, but insuring your home, holiday and any pets is almost as important.
If your home is flooded or burns down, you fall ill while on holiday abroad, or a beloved cat or dog needs expensive veterinary care, then a good insurance policy comes into its own.
Price comparison sites have made shopping around for affordable general insurance easier than ever, and helped drive down premiums.
But don’t choose your policy on price alone. You must be sure it will be there for you in an emergency.
Get pet protection that’s up to scratch
There is no NHS for cats, dogs and bunnies, so you could face hefty bills if they fall ill, warns Greg Wilson, founder of pet insurance comparison site Quotezone.co.uk.
He said: “Insurance is the best way to protect your furry friend, and safeguard your finances.” Last year, pet insurers paid £2.2m in claims every day, mainly to cover veterinary treatment for sick or injured animals, according to the Association of British Insurers.
Pet lovers made nearly a million claims, including 212,000 for cats and 734,000 for dogs, as well as rabbits, birds and hamsters.
The average claim was £817, but some cost a lot more, with insurers paying £7,000 to treat a French bulldog with a fractured leg, and £5,000 to re-attach a cat’s crushed toes.
But some premiums could have owners howling in pain, and they rise as pets age. Dog owners pay on average £420 a year, with cats costing £264, Which? research shows, but some spend more than £1,000.
One in five struggled with expensive or increasing premiums, with seven in 10 seeing a rise last renewal as their pet aged – £84 for dogs and £40 for cats.
Owners with dogs aged 10 to 12 years paid 80% more on average, than those with dogs under four. One in three dog owners claimed on their policy in the last year, and a quarter of cat lovers.
Which? Money editor Jenny Ross says the earlier you buy pet insurance, the better. “A younger animal will have fewer pre-existing conditions, making for fewer exclusions and greater choice between policies.”
Greg says how much you pay will depend on age and breed, so choose carefully when buying.
“Some pedigree breeds are attractive to thieves. Others have a higher risk of congenital medical conditions or genetic disorders.”
Keeping all vaccines and boosters up to date can reduce insurance costs, he adds.
“A lifetime pet insurance policy may cost more at first but will protect you from higher premiums as your pet ages.”
If you do switch policy at renewal, check whether your new insurer will cover pre-existing or chronic conditions.
Put your foot down on motor premiums
Motor insurance premiums have gone into reverse, falling at the fastest rate in six years to £538 a year on average.
That’s a drop of £87, as drivers spend less time on the road due to lockdown, cutting accidents and claims, according to Confused. com, but chief executive Louise O’Shea says drivers only benefit if they shop around at renewal.
“While premiums are falling generally, almost half of those who automatically renewed a policy in the last three months faced a £45 increase, on average.”
That’s because insurers often charge existing customers more to fund the loss-leading premiums they offer new customers. The Financial Conduct Authority has proposed banning this practice but says motorists will still save by shopping around.
How much cover costs depends on personal factors such as your age, profession, where you live and annual mileage, so make sure your insurer has accurate information.
A higher voluntary excess could also cut premiums – just be sure you can afford to pay if you claim.
Nurture your no-claims discount, which can knock up to 70% off if you’ve not claimed in five years.
If you can afford it, pay in full as most insurers will charge interest of up to 20% on instalments.
Drivers under 25 faced costs of £1,097 a year on average, but this is down from £1,282 last year, according to Comparethemarket.com
They should consider telematics insurance, which installs a “black box” in your car and sets premiums according to when and how fast you drive.
Young drivers could also save money by adding an adult to their policy but never pretend an older relative is the main driver, as this is “fronting” and counts as fraud.
Some pedigree breeds are attractive to thieves... Pet insurance boss Greg Wilson