What insurance do you really need? Find the policies right for you

Having insurance to protect yourself and your belongings is important – but it’s also vital that you get the right cover at the right price. Taking out insurance just for the sake of it, without doing your research and finding the right product for your needs, could be a costly error. If you are looking for insurance, do your homework. Make sure you don’t end up paying way over the odds for too much cover or get a shock when you find your policy doesn’t cover you when you need to make a claim. Here we take a look at travel, home and car insurance, highlighting the details you need to check to ensure you don’t get caught out. Car Although it’s against the law to drive without insurance, around 1.5million people take the risk of hitting the road with no cover.insurance costs – and legally-covered drivers can be left massively out of pocket if they are involved in an accident with them. It can be tempting to seek the cheapest policy, but this too can cost dear. Be wary of upping the voluntary excess to an amount beyond your means and check if there is already a compulsory excess on the policy so you know exactly how much you may have to pay out if you make a claim. Making modifications to vehicles and not telling your insurer Not disclosing convictions for motoring offences or penalty points. 

Car Insurance, says: “Penalty points may come off your licence after three years, but the conviction may not be spent. Failure to declare convictions can invalidate insurance.” Not telling your insurer who will drive the car the most Travel While flight delays and cancelled holidays can be upsetting and inconvenient, it’s the medical side of travel cover that is vital. A quarter of holidaymakers jet off without any cover meaning they may have to fork out huge sums if they get ill.you won’t receive any help if you don’t have your own travel insurance. Travel insurance, says: “There’s a misconception that if travellers have a medical condition that’s in remission or controlled with drugs, they don’t have to declare it. however, they do." Not having cover when you do extreme sports or activities Most insurers won’t pay out if you have an accident while under the influence of drink or drugs Home Home insurance is not a legal requirement. But if you have a mortgage, lenders will want proof you have buildings cover to ensure their investment is protected. 

A quarter of households take the risk of not having insurance – and while that could cost them dearly if they get broken into, have a fire or flood, it is their choice A more worrying issue is an estimated 75% of those with home insurance have either too little cover so could still end up out of pocket, or are paying too much for cover they don’t need. It may sound like an enormous amount but when you check the small print there could be limits on individual items which could mean your most prized possessions are not covered. Not having personal belongings insured outside the home Jewellery that has not been valued recently and is under insured, especially as the price of gold has increased substantially Properties that are not well maintained. For example, roofing and guttering left in disrepair can invalidate a policy. Insurance, says: “Check your home insurance policy annually to make sure you will have all the cover you do need and none that you don’t. “Compare policies, rather than just looking for the cheapest option.”