Product category:
General insurance
News Release from: Insurancewide.com Services | Subject: Insurance
Edited by the Insidemoneytalk Editorial
Team on 16 August 2007
Student advice from Insurancewide.com
General comment from James Harrison, CEO of Insurancewide.com, the original online insurance comparison service.
Insurancewide.com powers the insurance search engines for Yahoo, Tiscali, MSN and several other major finance portals "The most effective way to insure your belongings on a shoestring student budget is to do your research for the most relevant policy for your needs"
This article was originally published on Insidemoneytalk on 29 Mar 2007 at 8.00am (UK)
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"Read terms and conditions and watch out for the exclusion clauses".
"Good research means more disposable income!" Home contents insurance The most obvious insurance students need is home contents insurance.
This protects household possessions.
Most policies cover for damage by fire, theft and water and some policies will also cover for accidental damage.
To work out how much insurance you need to cover all your belongings, carry out an inventory of your possessions room by room.
Insurers set limits on the amount they will pay out for individual items so if you have expensive gadgets it is worth looking in to insuring them separately.
By insuring your laptop or computer separately, any claim you make will not affect your home insurance no claims status (therefore keeping your home insurance premiums lower).
Before you buy your own contents insurance for your time at university, speak to your parents' home contents insurer as student possessions can often be included on this.
It is important to pay particular attention to the exact level of cover, potential excess amounts and the insurer's stance on internal door locks and whether they are required.
Students may also find that the cover limits on their parents' policy will not cover all their possessions.
Some University Halls of Residence include insurance as part of their accommodation fee.
Don't assume this is the case, check it for yourself with your accommodation officer.
If it is not included then check your parents' policy before buying your own insurance.
However as soon as you move out of Halls you will need to insure your belongings for yourself.
Finally, check the terms and conditions for cover during holiday periods.
Standard student contents insurance will usually not cover the contents of your room if left unoccupied for over 35 days unless the cover has been extended.
A more comprehensive policy will usually cover your possessions during the long holidays.
If you are covered on your parents' policy, double check their clauses with regards to holidays.
Car Insurance It is illegal to drive an uninsured car.
The minimum legal level of car insurance is third party insurance.
This is the least expensive way to insure a car and is recommended as the cheaper option if the vehicle is of low value.
Many young drivers face the question of whether they should be a named driver on their parents' policy or start up their own insurance policy.
Although the latter is often more expensive in the short term, it allows you to start building up your No Claims Bonus and you will therefore benefit from lower premiums in following years and have access to a wider range of insurers.
Often students' addresses attract higher premiums as there is more risk of crime but you can save money in the following ways: Shop around and buy online.
Search the market online to find the most suitable insurers for your driver profile.
Many insurers also offer discounts when you buy online.
Don't just go for the cheapest policy; make sure it is right for you.
Always compare policies on a like for like basis and check the excesses levels and small print.
Build up no claims bonus.
Taking out your own insurance policy will enable you to start building up your no claims bonus.
You will then have access to a much wider range of insurers and reduced premiums in the future.
Buy a car with a low engine capacity.
Before you buy, always compare insurance premiums for different models you are considering.
The cost of the car, engine size, repair costs, safety track record and likely attractiveness to thieves will affect the insurance premium.
Cars with a lower insurance grouping will be cheaper to insure.
Take 'Pass Plus'.
These courses are designed to make you a safer driver and many insurers will offer you a discount.
The courses involve further lesson on how to observe potential hazards and driving in adverse weather conditions.
Avoid Modified cars.
Insurers are likely to charge more if your car has been modified in any way.
Any modifications, whether it be alloys, body kits, suspension upgrades, mean the factors on which your premium is based will change and insurers are likely to increase their premium.
Keep your car secure.
A professionally installed Thatcham approved alarm professionally can save up to 10% on your car insurance.
Try and park your car in a secure garage or off the road and you could save up to 5%.
Pay a higher excess.
If you choose to pay a higher excess (the amount you have to pay towards a claim) you can cut your car insurance premium.
If you are a confident in your driving ability and are unlikely to claim then this is a good way to decrease your premium.
Add a mature driver.
Insurers will often offer a reduced rate if you include a mature more experienced driver as a named driver on your policy.
Low mileage discount.
Low mileage drivers will often be entitled to a discount, however never deliberately underestimate your mileage as this could cause problems when you claim.
Appropriate level of cover.
Premiums vary whether you opt for Third Party Only, Third Party Fire and Theft or Comprehensive cover.
Get quotes for all to see how they compare.
If your car is of low value you could save by choosing Third Party cover.
Remember that Third Party will only cover you against accidental damage to a third party vehicle, injury to third parties and liability to passengers in the policyholder's car.
Fully comprehensive car insurance covers against accidental damage to a third party vehicle and to the policyholder's car, injury to third parties and liability to passengers in the policyholder's car.
Bicycle Insurance Don't assume that your bike is insured with your home contents insurance.
Standard home contents insurance policies often exclude them and ask you to pay an additional premium to cover them.
Alternatively you could opt to take out a specialist bicycle insurance policy.
Make sure that you always lock your bike up, even if you are just running to pick up a book from the library or going in to the newsagent.
Never leave it unlocked in the garden of your student house as this is the first place thieves will look.
Travel Insurance Consider an annual travel insurance policy.
However check the maximum number of days you can be out of the UK at any one time.
For longer trips you may need to look at a specific backpacker's policy.
Make sure you have specific cover for any planned 'hazardous activities' like rafting, bungee jumping or skydiving - some activities are completely excluded from policies unless you buy extra cover.
Make sure any expensive individual items such as cameras and ipods are covered.
These may be covered under your parents' home contents insurance - check! If you are intending to work abroad, buy a policy that definitely covers you for this.
If you are returning home during your trip, check that your policy allows this.
It's possible to get a home visit endorsement if you notify your insurer in advance.
Some policies end Health Insurance Private health insurance is an increasingly useful financial investment in an era of long NHS waiting lists.
It provides reassurance that treatment is available promptly and the policyholder has a guarantee that healthcare costs will be covered if they are injured or taken ill.
While private hospitals are generally not equipped to act as emergency wards, private healthcare will cover medical costs, ensure that you receive care quickly and often allow you to choose where you receive it.
If your parents have a family medical insurance policy they should be able to still include you up to your early 20s (age varies between insurers) regardless of whether you are living at home or elsewhere.
However, if you invest in your own private medical insurance policy at a younger age you will benefit from cheaper premiums.
14 August 2007.
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