Insurance

Question 1

Car insurance advantages

Answer 1

• satisfies legal requirement for car owners to have insurance
• three level of cover to meet individuals requirements (third party, third party fire and theft and fully comprehensive)
• can build up no claims bonus
• additional security precaution can reduce premium

Question 2

Car insurance disadvantage

Answer 2

• expensive for new and young driver

* policy excesses can add up costs in the event of a claim

Question 3

Home and content insurance advantages

Answer 3

• home insurance covers the cost of rebuilding or repairs as a result of fire,flooding or subsidence
• content insurance covers loss or damage to personal possession

Question 4

Home and contents insurance disadvantage

Answer 4

•only covers the cost of rebuilding properties not the market value