Truth And Fiction - Top Insurance Tips And Myths
By Claire West
The ABI has today published its 2010 tips and myths guide to help consumers make the right choices when taking out insurance. In 2008, a total of £10.7 billion was spent on motor insurance and £8.8 billion on property insurance. It is therefore vital consumers have the best possible information before buying insurance.
Maggie Craig, the ABI's acting Director General, said:
"In the current economic climate, it is even more important people are not under-insured or put off getting vital cover because they don't understand how insurance works. People with questions about their insurance should always talk to...
...their insurer or an insurance broker to make sure they have the right level of cover for their needs."
Top 5 Insurance Tips
1. TOP TIP: Disclosure is key. Whether it's previous medical problems or a recent speeding fine, full and early disclosure avoids any possible problems later. Holding back something that is relevant will be a false economy if it means your claim is later turned down. If in doubt, always tell your insurer.
2. Your home should be insured for its rebuilding cost, not its market value. Your buildings insurance sum insured must reflect the full rebuilding cost of your home, not its market value. The ABI has a rebuilding calculator which can help - abi.bcis.co.uk
3. Home improvements should be reflected in the sum insured. The extra value from improvements such as house extensions, new kitchens, bathrooms should be included when renewing your home insurance as they will increase rebuilding cost and therefore the sum insured.
4. Update contents cover. Always keep a check on the value of contents, especially as a home may now contain several flat screen TVs, laptops and music players. If you get new expensive goods, ring... continued on page two >