Everyone will be expected to know:
IMPORTANT FACTS- What is insurance?
VIDEO- Two helpful videos on two of the major types of insurance that young people will be likely to get in the future.
(Note: this table can only be viewed on a computer)
REAL LIFE EXAMPLE- There was a scandal regarding loan providers who "mis-sold" PPI insurance - i.e. sold it to people who didn't understand what they were buying. See Money Saving Expert's campaign on PPI mis-selling and advice on how to reclaim payments for insurance you didn't need.
IMPORTANT FACTS- How do you buy insurance?
Insurance can be bought in a variety of ways:
The best advice is to shop around!
Insurance premiums can vary hugely so the more quotes you get the better. Price comparison sites are great but not all insurers list their products on them. For instance Direct Line does not appear on such sites. It is also important to shop around when you renew a policy; some insurers place a heavy emphasis on “acquiring” customers and then seek to increase their prices.
Assess whether insurance is needed- do the sums.
For example, if you take out a 2 year contract on an iphone and lose it after the first year you will have incurred a charge of £12.99 x 12 = £155.88 plus the £50 excess so a total cost of over £200 but still less than the £500 + cost of the phone but it is still a lot of money to add to your monthly costs.
False insurance claim
It is illegal to falsely claim on your insurance. It is also important to tell the truth when you apply for insurance (such as declaring past motor accidents or speeding convictions) as failure to do so may lead to the insurer refusing to honour the claim.
REAL LIFE EXAMPLE - Two recent high profile cases:
John Darwin ("Canoe Man") - he faked his own death, turning up in December 2007, five years after he was thought to have died in a canoeing accident. This meant his wife was able to claim money on his life insurance policy. Both John Darwin and his wife Anne were sentenced to over six years in prison.
Rebecca Turner & Shanti Andrews - falsely told police in Brazil that a camera and other possessions worth £1,000 had been stolen from them. Police then found these items in their hotel rooms so they were arrested. They spent time in a prison in Rio de Janerio before being tried and sentenced to community service in Brazil.