With the threat of global warming more relevant than ever, the need to ‘go green’ when buying a new car has not been as pressing a matter as it is now.
Driving an environmentally friendly car is largely dependent on what the driver wants to do for the greater good, but new research has suggested that there is one more important reason for drivers to ‘go green’- car insurance products that are offsetting the damage done by emissions by contributing part of the policies to organisations helping to battle the problem of global warming.
Eco-friendly car insurance is a rising phenomenon and to this end eco-insurers are becoming increasingly competitive. Motorists driving vehicles with slightly higher emissions should think about green providers when searching for an insurance policy. But it seems there is a general apathy amongst drivers to change their ways and the real direction needs to come from government. For instance, the government should consider cutting Insurance Premium Tax for green cars as an added incentive. At present, motorists can expect to pay £50 more to insure a ‘green’ car-the argument then is that penalising them being green is much less of an incentive.
Cheaper quotes for more eco-friendly cars is definitely the way forward, but for those who might be put of by the current quotations, the bigger picture is in the financial savings. By choosing a car which has low emissions and is more economical, emitting an average of 17 per cent less CO2 than fuel-heavy equivalents, green motorists reap the rewards, cutting their fuel bills by an average of £165 a year, and their road tax by £125 each.
The insurance industry for one has thought ahead and is already paving the way forward for a more cost effective ‘green’ solution to providing the best quotes. For example, when providing new products, insurance companies are now offering to contribute to green causes and investing in the development of greener technologies- thus offsetting the harm of customer's car emissions.
With the advent of this new thinking by insurance companies as well as the commercial realities of the market, there has not been a better time to find a more environmentally friendly model when purchasing a car. With fuel prices rising to new levels, motorists are becoming more and more attracted to these fuel-efficient, lower-tax green vehicles, finding them to be not only cost effective but also helpful for the environment.
Author: Saurav Dutt
Green Insurance is the Best Ride
Going Private for Your Health
Anyone who has used the NHS knows that for short-term medical conditions and minor, non life-threatening conditions there is an incredible inconvenience in being part of a long waiting list. Going private and taking out private medical insurance policies has always been the more time effective option. Going private is not an alternative to the NHS, nor does it provide better care, but it does enable you do get the care you need quickly and at a suitable time.
If you are considering taking out private medical insurance, you should know that policies generally do not cover the treatment of incurable long term illnesses like diabetes or asthma for example they also do not cover conditions like drug abuse and HIV/AIDS for example. They do cover the cost of specialists and surgery and even Private medical insurance will cover the cost of specialists, surgery, a private ward in an NHS hospital, drugs and X-rays. The policy holder will be the recipient of improved facilities and a private room.
Private Health Insurance is more expensive the older you are and this throws up one of its biggest disadvantages in that it may price out clients just when they need it the most. Costs of policies are dependent on how the individual tailors it. For example, the product may be geared towards a more comprehensive range of treatments or to cover other family members.
Like any good insurance policy, foreword thinking is necessary to get the best deal. In order to save money you should consider a Budget policy, which applies only if the treatment you need is not available on the NHS within a set period. Other methods to save costs are to include paying a larger portion of the claim than normal, or by agreeing to accept a restricted choice of hospitals.
Author: Saurav Dutt
A Global Warning for Home Insurance
Global Warming will have unprecedented repercussions on all facets of society. The insurance sector is another potential victim, especially the home insurance market with research suggesting that the current value of claims could double or even triple by the middle of the century.
The Association of British Insurers (ABI) is the latest high profile business to ring the proverbial gong to warn us that global warming is going to harm us in more ways than the odd winter storm or hot summer. Extreme weather is on the rise, the changes in climate in the UK for instance have become highly unpredictable. The Met Office has revealed that the past ten years have been the warmest since records began and that the number of winter storms in the UK has doubled over the last 50 years
One only has to look at the increasing number of incidents of flooding within the country to see that the warning bells are ringing with greater regularity. Each time there is a major flood, average premiums for buildings and home contents cover rises. Furthermore, it is not just flooding but severe gales that have been making the news headlines in the past few years. After such incidents there is always a surge in claims and after the event, insurance companies prepare to raise premiums again to counter the possibility of even more floods or gales in the year to come.
Worryingly for home owners, the insurance industry may be taking a more costly turn upwards to prepare for future escalations of bad weather. In the US for instance, Florida state officials are researching whether they should add a climate change component to an insurance hurricane risk model they have developed. Insurance companies there are working with meteorological agencies that forecast the risk of national disasters for the insurance industry, and are revamping computer models used to simulate weather trends. This of course will hit homeowners in the wallets and the UK may soon be adopting more sophisticated insurance forecast systems in the future which will raise premiums even further.
Indeed the crumbling home insurance sector in the US is the biggest indication of how other worldwide insurance providers will be hurt. After the 2004 Florida hurricanes, no less than seven private insurers stopped writing new homeowners policies or exited the market completely, even after they won substantial rate increases. In Texas, homeowners saw their premiums double after soaring water-related mold claims caused dozens of insurers to stop writing or renewing homeowner’s policies.
The warning signs are already here then, and if climate change trends and insurance trends continue, it is likely that availability and affordability of insurance will be at even greater risk for homeowners and businesses.
Author: Saurav Dutt
Smoking Can Harm Your Insurance Too
Smoking is not just a burden on your health but your finances as well. There is the direct cost of purchasing them and the accrued cost over time can be ridiculously high. The collateral financial cost of smoking is the negative impact it can have on life insurance. Smokers more than other clients will be more likely to suffer serious illness or die as a result of the habit, and so companies know there is a higher standard of risk involved when offering them life insurance.
Smokers will no doubt be quoted higher costs because policies are taken out over the long term. The variation in quotes is stark in its honesty. For example, a policy which has the lowest price quoted for £200000 of life cover for a smoker over 25 years with critical illness cover included on a single basis, will be £4503 dearer for him/her as opposed to most policies for non smokers.
If a smoker is thinking of bending the truth when applying for a policy, the best advice is not lie at all. By saying a person is a non smoker on their policy-despite cutting a 20 cigarette habit a day to, say, 2-they run the risk of their policy being declared void or even fraudulent. If a person hides the fact about their smoking and this lie is discovered when the insurer is assessing a claim, they can easily refuse to pay out. The discovery can be even more embarrassing as the client may even be asked, as part of the application process, to undertake a saliva test to confirm that their non-smoker status. If the lie is then discovered for example, the application may be declined and other insurers could then refuse to cover the individual.
The key number is 12 months. That is all a smoker has to survive to gain a better life insurance quote. After a year of not smoking, life insurance companies start to class you as a non-smoker, and being a non-smoker can result in premiums of life cover and critical illness cover being 50 per cent lower. Of course a cheaper premium is not a certainty, as it depends on age and health but by ceasing the habit, the client stands a much better chance.
The best advice then to a smoker is obviously to quit the habit, and after doing so if the individual has honestly survived the 12 months without a cigarette then they should tell their insurance company straight away. Furthermore, the individual would be well placed to research the insurance market and find the best deal when renewing the policy-the likelihood being that the best premium will be from a new and different life insurance provider.
Author: Saurav Dutt
Insure Before Packing the Suitcase
Packing for a holiday involves many things but one necessary item that travellers often forget to organise well in advance, is travel insurance. It is an essential item to plan for as not doing so could end the traveller up in dire straits in a foreign country if, for instance, you lose an expensive camera in Thailand or have to cancel a trip suddenly and are bombarded with cancellation fees and losing your deposits.
Naturally, shopping around for the best insurance providers is essential. Most people tend to buy cover directly from the travel agent who helped book the holiday; this is not always the wisest option. Some of these travel companies offer cover which is advertised as ‘free’ but it is unlikely that the insurance is actually free, as the cost is generally incorporated into the price of the holiday. To this end, the commission is a big method of revenue for travel agents and it is more prudent to get a better deal via an insurance broker or an insurer that sells its products direct to consumers. They often charge half as much as the travel companies.
What cover a traveller takes out really depends on the particulars of what their holiday(s) involve. If the traveller goes abroad a couple of times a year it would be prudent to take out an annual policy as they are much better value than buying cover as you go along.
Another tip is that when you are buying travel insurance, it is a good idea to ascertain what the excess is and whether it applies as one amount per claim or for each part of a claim. You should also verify the limit on individual items. You may need higher limits if you are taking expensive items.
If you are a traveller intending to take part in any high risk sporting activities like bungee jumping or whitewater rafting, then it is essential that you are covered for these recreational activities. Make sure you are covered for any unusual sporting activities you are planning, such as whitewater rafting or bungee jumping. Also be aware that insurance for winter activities like skiing are usually more expensive.
The best advice is then to think well ahead when booking your holiday and take out the appropriate travel insurance. Additionally, make sure you always read the fine print, as claiming that you were not aware of certain clauses will not benefit you when it is too late.
Author: Saurav Dutt
