Don't Risk Being Underinsured As a Result of Budget IncreaseThursday 24th June 2010
Higos Insurance Services managing director Ian Gosden is urging consumers not to let the rise in insurance premium tax (IPT) rate leave them under insured, or in the worst case, without cover.
While the rise in the IPT rate is less than had been hinted at during the run up to the Emergency Budget on 22 June 2010, the hike in price of insurance combined with other increases in tax, such as the 2.5% rise in VAT to 20%, will put even greater pressure on household budgets and may prompt some people to consider reducing their cover and so leave themselves under insured.
Or they may decide that as they haven’t made a claim in years they can do without a particular insurance to cut costs.
Ian Gosden says: “Household budgets will be under considerably more strain once the 20% VAT rate comes in and people may view the higher cost of insurance as tipping it into the ‘Can we do without it’ bracket in their household finances.
“Insurance is taken out for a very good reason – protection in the event that something untoward happens.
“I would urge people to look very closely at what insurance they have, why they have it and what they would do if the worst happened and their insurance was not in place.”
The growth in comparison websites has left many people being led by price and not fully knowing whether the level of cover they have purchased is right for their needs, Gosden adds. “The danger is that people go online and look for cheaper insurance and then find that the cover purchased leaves them under insured. This can lead them to drop cover when they may need it most.”
Going through a local broker can be beneficial here, says Gosden. “A good broker will be able to talk through your needs with you and look at the type and level of cover you really need, where cost savings may be made, and then find the best offer to meet your needs.”
To find out how Higos can help you review your insurance requirements call 01749 834 500, call into one of their 15 offices throughout the south west or visit www.higos.co.uk
Top tips to getting the best insurance deal
1. Review the insurance cover you have and ask: Does it meet my needs?
2. Could you be over insured – for example, do you have a blanket cover for contents insurance that exceeds the level of cover your really require?
3. How high is your excess on your policies? Increasing the excess will often decrease premium costs.
4. Do you know what types and level of cover are available now? Speak to your local broker. They will be able to go through your needs and the cover available in the market and see where savings may be made.
5. Through their relationships with insurance companies local brokers can often have individual deals that are exclusive to them.