Insurance can offer invaluable protection against unforseen events. The price you pay is called a premium.
Common types of insurance relate to:
- your home – if you own your home, you should have buildings insurance to cover damage to the building
- your belongings – contents insurance covers loss or damage to your household possessions
- driving – you are required to insure against damage or injury caused by your vehicle to other vehicles and people (you can also insure yourself against theft, damage to your vehicle and injuries caused while driving)
- travel – travel insurance covers you against the cost of delays, lost property and medical bills while abroad
- life insurance – your family will get a payment if you die unexpectedly. You should also check what payment is due from your pension scheme if you die
- pets - you can insure your pet against the cost of vets’ bills, costs incurred finding a lost pet, or if you are unable to care for a pet because of illness.
You may have heard stories in the news about people being wrongly sold Payment Protection Insurance (PPI) when they took out a loan or overdraft.
If you are in this situation, or you’ve been offered PPI and aren’t sure if you need it, contact the Citizens Advice Consumer Service for advice.