What insurance do I need?

Insurance policy

If you’ve come to this guide, you’re probably asking yourself the question “do I need insurance?” and more specifically, “what type of insurance do I need?” and “is insurance worth it?”.

As always, you’ve come to the right place as we’ve put together our huge guide of the most common types of insurance, including both essential insurance policies as well as non-essential insurance policies, helping you make a more informed decision.

Types of insurance

In an ever-changing world, the amount of things you can get insurance for is constantly evolving and improving, so we completely understand that it can be a little overwhelming when it comes to choosing the right insurance policies for you. 

Motor insurance

Let’s start with one of the most common and essential insurance policies; motor insurance.

In the UK (as well as many other places around the world), it is a legal requirement for your car, van or motorbike to have a proper insurance policy in place.

Not only would you face incredible costs if your vehicle was lost, stolen or damaged, but you’d potentially also be facing criminal charges if you were to drive without insurance.

The bare minimum car insurance policy you can have is third-party insurance, however, this really is a very basic policy and you won’t be covered for an awful lot if your vehicle does get stolen, damaged or lost.

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Home insurance

Home insurance isn’t just considered to be essential as part of your mortgage agreement, but many people would say that it’s essential to them for their own peace of mind. 

There are two main types of home insurance policies; building and contents insurance, and both protect you financially against damage, theft, accidents and more within your home.

Usually, every member of the family will be covered under your home insurance policy, as well as all their possessions, depending on the level of cover you have.

Life insurance

Life insurance isn’t always considered to be essential for many people, so it really depends on your own individual circumstances.

While it’s really not very nice to think about, it is something that you need to consider. For example, if your next of kin or your family, in general, depend on your income and something was to happen to you which meant you were no longer financially supporting them, then they could be in quite the predicament.

However, having even the most basic life insurance policy in place, will give both you and your family peace of mind should anything happen to you.

Learn more about the different Life Insurance Policies here.

Critical illness cover

Critical illness cover is another type of insurance that’s entirely dependent on your own circumstances as to whether you’d consider it to be essential or not.

This type of insurance covers you in the event that you get diagnosed with one of the specific medical conditions or illnesses listed in your policy. However, it’s important to bear in mind that you probably won’t be covered for any pre-existing health conditions or illnesses that you knew you had before you took out the policy.

Some types of critical illnesses that this kind of policy could cover include a heart attack, a stroke, some stages of cancer and conditions such as MS, amongst others.

If you do plan on taking out critical illness cover, make sure that you know exactly what you’ll be covered for and not covered for in the event that you need to make a claim.

Travel insurance

Travel insurance is another essential form of insurance if you travel frequently. While it isn’t usually required by law, it is definitely a good thing to have when travelling as it helps protect you in the event that you suffer from an injury, accident, theft or more.

For example, if you become ill in a foreign country and you don’t have sufficient travel insurance, then you’ll likely be liable to pay thousands for your medical bills and treatment. 

While you’d hope that you never actually have to make a claim on your travel insurance, it’s still good to have when travelling for your own peace of mind.

Pet insurance

Pet insurance obviously isn't something that everyone needs, however, if you are a pet owner, it would be your responsibility to ensure that any vet bills can be paid and having a good pet insurance policy in place can help with that.

If your pet ever falls ill or needs to undergo a serious operation, you could be looking at thousands of pounds worth of treatment. Whereas, if you have pet insurance, a vast majority of the bill should be covered under your policy.

Income protection insurance

Income protection insurance is generally considered to be an essential type of cover to have, in particular, like life insurance, your family relies on your income.

In the unfortunate event that you were to become ill, have an accident, become unemployed or find yourself no longer able to work due to unforeseen circumstances, then an income protection policy will offer you a tax-free income replacement.

Mobile phone insurance

Some people would consider mobile phone insurance an essential part of their insurance lineup, particularly if they have an expensive, new phone.

However, you can usually file your mobile phone under the contents part of your home insurance policy, so there isn’t always a need to take out a separate policy just for your mobile phone.

Before you rely on this, be sure to check if your home insurance policy would cover any damage, loss or theft to your mobile phone, otherwise, it might be a good idea to take out a separate policy.

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Private medical and dental insurance

Again, this type of insurance isn’t something that everyone would consider essential.

If you’re someone interested in private medical and dental care however, then this could be something that you might want to consider as it provides you with a wider choice of medical and dental care options, as well as the comfort of knowing that you’ll be able to access private healthcare.

It’s a cost that many people would deem as unnecessary, but it’s entirely your choice as to whether you’d consider it to be essential to you and your family.

For more insurance advice and information, be sure to take a look at our useful guides below!

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