Do I actually need insurance?

Do I need insuranceTimes are tough. We are all looking to save money when it comes to our day-to-day expenses. But short of not eating, spending less money on heating and generally cutting back on all the things that the majority of us need to get by day-to-day/week-to-week, there is little room for manoeuvre when it comes to money saving…. unless of course you cut-back on insurance, that is.

Many of us have asked the question at some point or another, ‘do I really need insurance?’ The simple answer is: yes and no.

Why? Well, there are certain products that everyone needs; some most of us would like but can live without; and certain insurance products that we can all forget about.

So what insurance products do you really need?

Car: If you want to drive a car on the road in the UK, you will need to have car insurance. What level of cover you decide to go for is, of course, a debatable question.

Do you go for third party ‘fire and theft’ cover – the cheapest type available – or do you go for a fully comprehensive policy that covers you and your vehicle to the hilt? The decision is yours to make, but fundamentally, you will need it.

Property: The majority of mortgage approvals require that you have some sort of insurance in place before they offer to lend you the money to buy a property.

Why? This is to ensure that if your house falls down, is flooded or burnt to the ground, they will be able to get their money back. Datamonitor research figures suggested that buildings and home insurance claims totalled £908million in 2009 – so for some, having the right level of insurance is nothing short of a godsend.

What insurance products should you have?

Life insurance is a bit of yes or no type of insurance. If you’re not the main breadwinner in the family or if you have no dependants then you can probably do without it. And if you are close to retirement you could possibly do without it, too.

Why? Well, fingers crossed that by then you are mortgage-free with a pension in place and, hopefully, your dependent children would have flown the nest and are no longer in need of financial assistance.

What insurance products can you do without?

Critical illness insurance is particularly hard to claim on, so too is payment protection cover, especially if you are unemployed, a pensioner, self-employed or a contract worker. So why bother paying for this type of insurance in the first place?

Insurance for weddings, pets, mobile phones, push-bikes are all good – if you have need to make a claim that is. Pet insurance policies are not always all they are cracked up to be.

You generally get what you pay for, so always read the small print when it comes to your insurance policy so you can see exactly what you are and are not covered for.

It is worth noting that if you do have contents insurance you may already be covered for your mobile phone, push bike or even losing your handbag already so check to see if you aren’t already covered, otherwise you could be paying insurance twice for cover you already have.

Policy Expert

Whether you want assistance in finding the right policy or even handling a claim, we make sure it’s all handled by experts. For more information on what‘s covered speak to one of our experts on 0203 014 9300 or email

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