Tips for buying motorhome insurance

There are many tips for buying motorhome insurance which could help you to save money on the cost of your policy and which ensures you get the best deal. One of these is to check any policy you are considering taking with a fine tooth comb. Never just take what seems to be the cheapest policy as you could find that it does not provide the cover you need. Different providers will offer different benefits and some could offer a more attractive deal than others.

One of the best tips for buying motorhome insurance to make savings is to increase the amount of excess that the provider asks for. All will set a minimum amount that you have to find out of your own pocket if you were to have to make a claim on your policy. If you pay more then you could save on the premiums but of course should you need to make more than a single claim in the same year you could lose out.

Your policy will include cover for your personal possessions. However what you would get from your policy can differ with providers. Some could payout new for old while others might take depreciation into account. If so your cover would work out cheaper. Also make sure that you know about any limitations and what was and was not covered in your policy. For instance certain items would not be covered, these could include expensive jewellery for example.

Finally another of the many tips for buying motorhome insurance includes deciding if you want European cover included in the policy. If you plan on travelling outside of the UK then you will and of course this comes at additional cost. If you only take your holidays within the UK then ensure this is not added into the policy to save money. Also check how many days you would be covered if you want this valuable protection as this could differ from provider to provider.

What is Motorhome insurance?

What is motorhome insurance? This is an insurance policy that any motorhome owner needs as it would payout for numerous scenarios in the event if needed. Motorhome insurance is a legal requirement to drive your vehicle on the road and at the very least you would have to take out third party fire and theft insurance. Third party would provide any third party involved in an accident the ability to claim on your insurance if they were involved in an accident with you that was your fault. However it provides little by way of insurance for your own vehicle. If you want protection for your own motorhome then you need to take out fully comprehensive insurance.

The features and benefits of a particular policy would depend on the insurance provider you took your policy out with. Some could give you optional extras which you would have to pay more for while others might include these at extra cost. Therefore it is essential that you go over the terms and benefits very carefully before taking out your cover.

If you are travelling around Europe in your motorhome then it is essential that you take out European cover. This would payout should you have an accident and need to be towed. It would also pay for repairs to your vehicle and would provide you with money towards alternative accommodation up to so many days and so much per day.

What is motorhome insurance excess and how can I save on it? All providers will include a certain amount of excess that you would need to pay out of your own pocket should you have to make a claim on your insurance. If you offer to pay more then you could keep down the cost but you have to remember that the figure you choose to pay would come out of your own pocket in a lump sum before the insurance company would take over the rest of the claim.

Is car insurance for a woman cheaper?

In the UK, women’s car insurance is marketed as a separate product. There are several niche insurers who cater for women drivers. Mainly, this is due to the understanding that women should be treated differently to men when it comes to insurance.

Figures produced by Governmental departments show that:

• 98% of dangerous driving convictions are men;
• over 90% of convicted driving offences are men;

On top of this, research has shown that women tend to drive slower than men and also do not cover as much mileage annually. Taking this into consideration when calculating an insurance premium, means that women are seen a lower risk and therefore an insurance company charges less for car insurance for a woman.

Different age groups
The statistics shows that younger women drivers, those under 45, will tend to receive the reduced premiums. Over the age of 45, the figures for accidents are more balanced that therefore reflect on the cost of insurance.

The future
The figures also show that the gap is closing between men and women but there is a long way to go. It should be said that it is the risk profile of a woman and their proven driving abilities by having less accidents and convictions than means they get more competitive premiums than a man of a similar age driving a similar car, but if that profile changes then insurance prices will go up.

The Features Of Redundancy Cover

Have you ever been made redundant? If not, consider yourself lucky, but if your luck ran out, will you be prepared? Redundancy cover will pay you a regular income if you were faced with involuntary unemployment. The benefit is tax free and you will be able to use all of it to pay your monthly bills.

The payment period usually lasts from 12 to 24 months and is something you will have to check with your provider.

This policy can be combined with other types of involuntary employment circumstances but on its own, the premiums will usually be lower.

How Does The Cover Work
Generally, the ability to make a claim under this cover will kick in only after a specified deferred period has passed, anywhere between 30 – 90 days after you are made unemployed.

The benefit you receive will cover a percentage of your gross income; it will not match your full salaried income.

There is no medical underwriting so the chance of your application being accepted is very high.

There are eligibility rules and exclusions which differ from provider to provider so you will need to take note of these to make sure you will be covered in the event of a claim.

Once you are aware of all the ins and outs of redundancy cover, the benefits become even more evident and with it, the importance of protecting your income.

Payment Protection Insurance – A Lifeline in Difficult Times

Being in debt without any means to repay it can wreak havoc to your personal financial security, not to mention your credit rating. This scenario can easily arise when, through no fault of your own, you are unable to earn an income due to involuntary redundancy, illness or a serious accident. It is in such a situation that an insurance product called ‘Payment Protection Insurance’ (PPI for short) can be a lifesaver. The basic function of loan payment protection policy is to offer consumers a way to keep up loan repayment for a period of 12 to 24 months even if they are not working.

There are several different kinds of PPI policies and the terms and conditions and benefits will differ from policy to policy. It is therefore quite wise to shop around in order to find the product and the level of cover that will be right in your specific circumstances. In general you have to be between 18 and 65, in full time employment and a UK resident.

It is very likely that you will be offered PPI when taking out a new loan. It could however well be that you will do better by shopping around a bit as some loan providers tend to regard their clients as a ‘captive audience’ as far as selling insurance is concerned. It is however possible to take out insurance on the ‘open market’ (you can do this by speaking to a broker or directly to an insurer) usually at much better rates than those offered by loan providers. It is very important to remember that a loan provider cannot force you to take out the policy that it issues (or recommends). There is therefore nothing to prevent you from trying to find a better deal.

Payment for a PPI is through a series of monthly payments. If you are paying on a monthly basis it is very important to keep up regular payments as non-payment could lead to a policy cancellation.

PPI policies will normally pay out in cases of incapacity or redundancy. In the case of loans it will cover the monthly payment for the agreed period. In making a claim you will have to prove that the main conditions for the policy to be paid out (e.g. that you are unemployed and/or unable to work) have been met. This means that it will be necessary to lodge supporting documents like medical certificates or a letter confirming the termination of your employment to the insurer. You may also be required to prove that you did not lose your job because you:

• Resigned
• Took voluntary redundancy
• Broke the conditions of your employment

The extra money that you will have to add to a loan repayment to take out PPI might seem like an unnecessary expense as you are paying it. However having a policy in place can very often be the one thing preventing temporary unemployment turning into a full-blown and catastrophic financial crisis.

Summary:

• Payment Protection Insurance (PPI) is designed to protect borrowers against the inability to repay their debts due to unemployment or incapacity.
• PPI can be purchased either through the loan provider or on the ‘open market’
• In some cases the premium for the PPI policy is added to the loan while a monthly payment is required in others.
• Upon claiming under a PPI policy it will be necessary to prove that you actually meet the conditions for the policy to pay out.

The Risks Associated with Driving an Uninsured Vehicle

There are a staggering number of motorists who drive without car insurance which is frightening when you consider the risks as well as the fact that driving without cover is a serious offence.
The reasons that uninsured drivers give for not taking out insurance are varied and typically include the following.

• Cost: Many people claim that they simply cannot afford to take out insurance
• Forgetfulness: A large proportion of uninsured drivers simply forget to renew their cover
• Time Constraints: Some uninsured drivers claim that they do not have the time to arrange insurance
• Ignorance: Some people are unaware of the legal requirement to take out insurance
• Wilful Lawbreaking: It is sadly the case that a significant proportion of those driving without insurance simply do not consider insurance necessary

Whatever the reasons people give for not taking our insurance, it is never worth it. Some of the possible results of taking this course of action include the following:

• License penalties: If you are caught driving an uninsured vehicle it could least to 6-8 penalty points being added to your license. Considering that you need only 12 points for your license to be suspended, driving without a license can be a significant step towards getting you ‘off the road’.
• Risk of a fine: Uninsured drivers are routinely fined for what is considered to be a serious driving offence. Fines range from £500 – £1000.
• Exposure to serious liability: If you are uninsured against third party liability you are leaving yourself open to cost recovery attempts by other drivers or their insurers if you are ever involved in an accident.
• Risk of vehicle seizure: In some cases the police may decide to seize your vehicle until you can prove that you have arranged the required insurance. The costs associated with this, coupled with the inconvenience, can be very significant. You will be liable for all transport, administration and storage costs.
• Significantly increased premiums in future: If you have been caught driving without insurance, insurers will henceforth regard you as a very high risk customer. This means that your insurance premiums will rise significantly for at least 3 -5 years. This obviously leads to the ironic situation where an attempt at ‘cost saving’ can eventually lead to much higher costs.
• Risk of a custodial sentence for repeat offenders: It is not unheard of for people who repeatedly flout the law by driving without insurance to be criminally prosecuted and sent to prison.
• Negative impact on others: Uninsured drivers cause insurance premiums for the rest of the driving population to rise by as much as £50 per person. This means that those not paying their way are actually placing a huge financial burden on the rest of society.

It should be very clear from the above that, whatever the perceived, ‘advantages’, it is never a good idea to even consider not being covered by insurance when you take to the road. The perceived ‘saving’ or avoidance of hassle pales in comparison when you consider the extremely negative impact that this choice can have on your life.

Credit Card Balance Transfers: The Basics

Many banks offer the incentive of 0% (or very low) interest for a fixed period on balance transfers when customers take up a new credit card with them. In theory this enables customers to move credit card debt on which they pay a high level of interest to a card where they will, for a period at least, pay no interest. This can be an effective strategy to avoid paying interest for a time, but it is also one that will have to be ‘handled with care’ due to some very real risks associated with it.

One of the most important risks associated with balance transfers is the fact that it can, in many cases, not be sustained in the long run. This is because banks will often take a dim view of customers moving debt from card to card without making a serious attempt to reduce the debt itself. This means that customers who continually do credit transfers will often find it very difficult to do so after a while, meaning that they could be stuck with a rather unattractive credit card that they only chose because of the 0% transfer option.

In extreme cases excessive transferring activity could be passed on to credit rating agencies. This can wreak havoc on a customer’s credit rating, making access to other kinds of credit very difficult.

It is very important to make sure that you actively manage the card into which you made the transfer. The zero rate often comes with all kinds of terms and conditions attached. One of the most important of these is that any late payments will immediately trigger the regular APR.

Before making the decision to transfer your debt to new card it would be a very good idea to make sure just what the low rate that you are being offered applies to. In some cases it will only apply to the transferred balance itself and not to any subsequent purchases. It would obviously be better to find a deal that offers this rate on both the balance and on new purchases.

If the card that you made the transfer to offers different rates on the transfer amount and on subsequent purchases, you will have to keep in mind is that any payments that you make will, in most cases, first be applied to the portion of the debt that is subject to the zero rate. This means that you could end up paying ‘interest on interest’ on the new debt while servicing the transferred amount.

All of the above does not mean that you should avoid transfer arrangements at all costs. They can be very effective in helping you to reduce interest payments while you work on paying off your debts. It can also be a means to consolidate all your credit card debt in one place making its management, and eventual payment, much less complex. The bottom line is that it is a strategy that should be used with care and that should be actively managed, as a simple mistake (like missing a payment) or the lack of a complete understanding of what a particular offer entails, can cost you dearly.

Summary:

• Credit Card Balance Transfers allows you to transfer debt from one credit card to another at a lower rate.
• It is a strategy that should be used with care as it can be quite risky in the long run.
• It is best to find a deal that offers the low rate on both the transfer and on new purchases.
• It a strategy that should be actively managed with a definite purpose in mind.

Beating the credit crunch

Dealing with economic challenges and beating the credit crunch is more difficult for people already struggling with large amounts of debt and high interest rates. Finding options to make your credit more manageable are a bit tougher during tightened credit market periods. However, there are some great tips that can help anyone, regardless of your current situation, better maneuver through the credit challenges. There are several opportunities to cut expenses and find savings.

One of the first areas in which consumers can more effectively negative the tight credit market is in the retail sector. Retail businesses, like consumers, are struggling to drive sales and make money. Stores, and especially online retailers, have slashed prices across the board in many cases. Steep discounts are available, so shopping wisely to find the best prices on the products you need is a great way to beat the credit crunch. There are also some great budget-priced or discount-driven stores that provide regular, ongoing price breaks. Now might be a good time to learn about value-priced retailers in your area. There are also some retailers that run mailing lists and provide discount vouchers or rebate offers to customers. Look into signing up for some of them.

Another way to make it through is to reduce your level of borrowing. Historically, many consumers worked through their credit challenges by routinely moving from one creditor to the next to take advantage of zero per cent transfer opportunities and other deals. These deals are not readily available in a tight market. This is especially the case for those that are already stuck with high credit balances. As such, it is important to improve your current credit situation by paying off as much debt as possible. Start first with higher rate balances and meet all other minimum payment obligations. People with savings are likely earning less on savings accounts than they pay in credit balance interest. Thus, it is smarter to use savings funds to pay down high rate credit balances.

Beating the credit crunch requires discipline and proper financial management. Unfortunately, those that are in the most precarious positions likely lacked discipline when building up high amounts of debt. Still, the situation is not hopeless. The key is to look for all savings opportunities, cut costs, and reduce borrowing during the hard times. Eventually, when the credit sector recovers and credit is more available, there may be some nice opportunities to consolidate debt, reduce monthly payments, and lower the amount of interest paid on debt.

So, successfully beating the credit crunch is a battle of emotions and mentality. It is important to make decisions using logical judgement. Thus, do not panic if faced with a tough financial situation and significant debt. Take some time to sit down and explore all of the money saving and debt reducing opportunities. Remember these three tips:

• Look for discount price opportunities through retailers
• Reduce your level of borrowing to avoid worsening your credit situation
• Cut your expenses in whatever ways possible

First time buyer mortgage tips

Buying a home for the first time can be one of the most exciting, and most stressful events of your lifetime. The sense of independence and the excitement about selecting your new home are great fun. However, the process of looking for a home and searching the market can be exhausting. Perhaps more exhausting is the process of getting financing to purchase your new home. There are lots of options and lots of considerations when looking for the best new home loan. It is important to understand what you are getting into and to know where to go for help. Let’s take a look at several important first time buyer mortgage tips that can make your buying experience more fun than frustration.

The first thing to know about buying your first home is that many lenders have programmes in place to assist first time buyers. This assistance includes basic support during the selection and shopping process. More specifically, some lenders have nice rate plans and packages designed to help first time buyers get a fair loan opportunity despite the lack of previous homeowners and mortgage history.

Another of the more important first time buyer mortgage tips is to keep in mind all of the costs that go into buying a home and getting a mortgage. Mortgages obviously have repayment plans that include principle and interest provisions. Additionally, there are costs to close a loan including bank fees, appraisal fees, inspection fees, local council fees, application fees, and more. These expenses are typically paid by the borrower at the close of the sale and mortgage.

Consider whether you want to obtain mortgage insurance protection as well. Some lenders have notoriously pressured borrowers into taking on expensive insurance premiums by bundling mortgage protection with the new mortgage loan. New provisions from the Competition Commission require a 7 day delay between the close of a mortgage and the sale of mortgage insurance by the lender. You need to use this time to explore options in the independent insurance market to get less expensive protection. This mortgage payment protection helps you keep up with monthly mortgage payments if you face involuntary redundancy. Some plans also cover prolonged illness or accident. The benefits of the insurance replace a significant portion of your monthly income.

Finally, remember to carefully calculate all the expenses you will have in your new home when contemplating your buying range. Some people mistakenly believe they can afford to buy a bigger house than they should and end up being forced to foreclose because they cannot keep up with monthly payments. Objectively consider the costs of your new mortgage, including homeowners insurance, along with the other potential costs noted.

Here is a quick reminder of the most important first time buyer mortgage tips:

• Look into lender programs that assist first time home buyers
• Carefully consider all costs that go into buying a home and getting a mortgage
• Consider whether to obtain mortgage insurance protection
• Calculate all expenses with your new home and only buy what you can afford

Protect your home with mortgage payment protection insurance

If you were unexpectedly made redundant, or you were struck down with an extended illness or accident, how on earth would you pay your mortgage? It is a frightening though. However, the good news is that there is an affordable way to protect your home against the unforeseen.

Mortgage payment protection insurance – or MPPI – provides a pre-agreed amount every month for 12 -24 months, depending on your provider, which helps you service your mortgage repayments. It’s a simple but very valuable insurance that can stop any financial worries at an otherwise stressful time. It will also be paid each month as tax free payments.

This income come mean the difference between you falling into arrears with your mortgage repayments or keeping them up to date so it can be a financial lifeline.

How long would I have to wait before claiming?

Policy features can vary, but policies can start to pay out typically anywhere from 30 – 90 days after you are made unemployed or become incapacitated.

When taking out mortgage insurance you are doing so to ensure that you would have an income that would stop you from falling behind on your repayments. Therefore you would have to consider that you could be in mortgage arrears by 3 months if you have to wait for 90 days before seeing any money.

Do take note that the protection will cease providing you with your income when the term (either 12 or 24 months) had been reached regardless of whether you had found work or recovered. If you lucky enough to recover or find new work within the policy pay out period, then benefits will stop.

Choosing what you want to protect against

While you can take out mortgage payment protection to insure against becoming unemployed or incapacitated you could also choose to tailor the policy to suit your individual needs. For example, you might just want to cover the chance of becoming a victim of involuntary redundancy. You could take this out as a standalone policy if your employer paid you a good sick pay plan. You might alternatively choose just to take protection for incapacity alone if this suited your lifestyle better.

The events you chose to protect against would go towards setting the monthly premiums so you would only have to pay for insurance that is needed.

As you can see, the benefits of mortgage payment protection insurance are invaluable. And with many standalone providers offering comprehensive cover in the PPI marketplace, covering your mortgage repayments has never been cheaper.

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