Are You Getting The Right Insurance Deal?
While there are many different kinds of insurance which are vital to our everyday peace of mind, it appears that some in the market may be taking advantage of consumer concerns. Do you know the real cost of your insurance? Did you know that you always have the right to shop around?
Some of the more common instance of “sharp practice†in the insurance market include :-
· Mortgage payment protection. While this is the type of product which allows people to sleep easier at night, did you know that only 20 - 25p of every pound of premium is paid out in claims? If insurance is presented as part of your mortgage package, you STILL have the right to shop around elsewhere - your mortgage provider cannot force you to buy their policy.
· Credit Card protection plans. Yet another example of an insurance product which offers the providers a massive mark-up on premiums. This product can often be included in your overall credit card agreement, without being specifically highlighted to you. Many people already have their own income protection plans in place, so you may be paying out twice for the same protection.
· Life Insurance as part of your mortgage agreement. While the life insurance market is very competitive, when acquired in its own right, it is when the insurance is connected to another product, such as a mortgage, that it can become expensive. Many people agree to these insurances without checking the individual cost of the insurance - again you can shop around, even if it is presented as part of the overall mortgage package.
· “Free†Travel Insurance with your Credit Card. While there is no direct cost for this type of insurance, many consumers have fallen into the trap of thinking it offers comprehensive travel cover. In the majority of cases the insurance cover will be very basic, exempting certain sports, certain areas of the world and often leaving the consumer seriously under-insured.
These are just a few of the more common practices which have netted substantial profits for the insurance industry, very often at the expense of the consumer. Remember, you always have the right to shop around for the best insurance product, no matter how strongly you are urged to take out a specific policy.
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