A4 - Types of Insurance Flashcards
What are the types of car insurances?
It’s a legal requirement to have car insurance.
- Third-party cover is the minimum legal requirement which covers injuries to other people, and damage to their vehicles and property. It’s usually more expensive than fully-comp cover because drivers that purchase 3rd party cover are more likely to get into an accident and make a claim.
- Fully comprehensive insurance covers damage to your vehicle and to someone else’s car or property, repairs, medical expenses, fire damage, and theft.
- Third-party, fire and theft policies cover other people, their vehicles, and their property, as well as protection for your own car if it were to get stolen, or if it’s damaged by fire.
What is a home and contents insurance?
Home and contents insurance covers your house and other structures on your property as well as your belongings for loss or damage due to events like fire, theft and storms.
- If you claim your insurance, as with any other type, your premium could increase due to you showing that you’re more at risk & unique items can’t be replaced.
What is life assurance and insurance?
It’s a policy that pays a lump sum upon death. Life insurance is usually required when purchasing a home to ensure the mortgage is covered if the homeowner dies.
+ It provides a peace of mind regarding any major loans being repaid after death
- No pay out if you live past the stated time period & premiums becomes more expensive as you age
What does travel insurance entail?
It protects you while abroad and typically covers illnesses, holiday and flight cancellations, theft and emergencies during your travel.
+ Protection of personal items & covers medical costs
- An additional cost when travelling abroad & likely to have to pay upfront and claim money back later
What is a pet insurance?
It protects the owners of pets from expenses associated with looking after a pet such as illness or injury of the animal.
- May never need to be claimed if the pet is healthy
What is a health insurance?
It covers individuals, families and employees via a payment plan that may include going to the dentist or opticians.
+ Access to better healthcare & some financial compensation provided when ill
- If there are too many treatments to treat, it doesn’t cover it
