You might think that insurance and annuities are expensive and many people try to get around this by either not taking out insurance at all, or just taking out the minimum, but chances are that you will need to claim on an insurance a few times in your life and the lack of cover could cost you dear, so it could be a false economy.
House insurance is one of the most critical as it covers some of the most expensive things you own – bricks, mortar and possessions.
You hear many sad tales of people who have suffered fires or burglaries and have lost all their possessions, but who have not taken out insurance cover. While you cannot help but sympathise, house insurance is one of those essential expenses in life which we have to swallow.
Car insurance too is vital and if you own a car you will have to have at least basic cover, for third party so that if you injure someone in your car then you – and they – are covered.
Not having at least minimum insurance for your car is against the law but you should also consider a more comprehensive policy if your car is worth more than a couple of thousand. After all, there is no point splashing out on a car if you cannot afford to insure it properly.