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Insurance is financial cover for something you own.
Insurance helps you out with the costs when something goes wrong. For example, if your pet needs an operation, then the insurance company can help you with the vets bills.
Some types of insurance are compulsory. For example, you need to have insurance to drive in order to cover you for accidents or damage to another person's car or property.
Other types of insurance are down to personal choice. For example, travel insurance. In order to work out whether it's worthwhile getting this type of insurance, you will need to consider the likely impact on you if something went wrong against the cost of the insurance.
With insurance cover, you pay a premium which is a sum of money paid to the insurance company every year or every month. This covers you in case something should go wrong.
Each insurance company has different policies for different things. Some are more expensive than others, so it's important to shop around for a good deal.
Read the insurance policy very carefully before you sign and make sure you understand exactly what it covers.
Most insurance policies specify an excess. This is an amount you will need to pay when you make a claim from your insurance. For example, if you have an excess of £50 this means you must pay the first £50 of any claim. Your insurer will pay the rest.
The Money Advice Service has an excellent section on debt managment including:
- How insurance works
- Things to look out for when buying insurance
- When to use an insurance broker
- Making an insurance claim
- How to buy insurance using comparison sites
You can contact the Money Advice Service on 0300 500 5000 (or 0300 500 5555 for Welsh) Mon - Fri 8am-8pm, Sat 9am-1pm. There’s also an online chat function on their site.
You can contact Meic for free via online chat, text (84001) or phone (080880 23456).