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How are Insurance Groups Classified?

How are Insurance Groups Classified?What are Insurance Groups?

In the United Kingdom, car insurance rates are set, by what car insurance group your respective vehicle falls into. In essence, insurance groups are classification groups aimed to organize the delivery of car insurance in the United Kingdom. Each automobile is placed into a specific insurance group based on the vehicle’s engine size, fuel economy, safety ratings, repair costs, value and overall performance.

In total, there are twenty car insurance groups in the United Kingdom; in general, the higher the group (and vice versa), the higher the performance of the vehicle and the more you will have to pay for insurance. The classification system was installed to streamline the insurance pricing model; in the United States a risk assessment is evaluated for each insurance application, whereas in Britain, vehicles are simply placed into fixed brackets or car insurance groups to expedite the delivery of a car insurance rate.

How are Insurance Groups Classified?

Car Insurance Groups in the United Kingdom are established by the Group Rating Panel, which primarily made up of the Association of British Insurers and Lloyds Market Association. These individuals meet on a monthly basis to classify each new car that is marketed or produced in the United Kingdom. Although the rating system has a substantial influence in regards to the insurance rates in the United Kingdom and the majority of car insurance companies use the groups, it is not a compulsory classification system.

Buyers of new cars can find out what group a certain model is classified before they make a purchase; this enables buyers to have an idea of what their insurance costs will be before finalizing a purchase. In addition to the aforementioned characteristics associated with the vehicle—such as the car’s safety ratings, gas mileage, price and replacement costs—other factors, including driving history, age, credit score and education may be calculated to determine the appropriate insurance group.

Insurance Groups Classifications:

Low Car Insurance Groups: Cars that fall in this group typically have a score below 10 on the classification scale. These cars are considered low risk in regards to the likelihood of initiating a claim. Furthermore, automobiles ranked in the low car insurance group have low replacement costs, so even if an accident or claim was realized, the insurance group would face lower costs. Cars in this group are typically equipped with the latest safety features, including advanced alarm systems, VIN numbers and an immobilization system in the event of theft.

Midrange Car Groups: This car insurance group is home to vehicles with a score between six and 12. The majority of family-style cars, because of their generic repair costs and advanced safety features are grouped in this category. Cars in midrange insurance groups carry an average sale price, but hold their value well to generate an above average resell value. The ford Fiesta and Citroen Saxo are examples of midrange vehicles.

Above Average Car Groups: This group is home to the majority of sedans and smaller compact cars. Vehicles in this group possess scores between nine and 20, as a result of their larger engines, enhanced packages, such as trim and wheel enhancements and their high repair costs. The BMW 3 series and the Audi A3 are examples of cars in the above average group.

High Car Groups: This classification is home to sports cars and luxury vehicles; these cars typically have high performance engines, a high sales price and several add on packages. While the majority of these cars possess the most advanced safety features, the high cost of replacement for parts and repairs cancels out any positive ratings. Vehicles in this group typically fall between 18 and 20 on the car group scale and as a result, carry the highest insurance premiums of all insurance groups.

Picking the Right Travel Insurance

Picking the Right Travel Insurance

 

What is Travel Insurance?

Travel insurance is a type of insurance that will provide a traveller with coverage against monetary losses, obtained during the trip, and delayed or cancelled travel.

Furthermore, purchasing travel insurance will offer coverage for costs associated with medical expenses, financial hardships over travel suppliers and other losses that may incur while travelling. Travel insurance may be purchased by an individual travelling within his or her country or abroad; regardless of the location, the insurance policy provides coverage against any financial losses that occur as a result of travelling.
Similar to other insurance policies or types of coverage, travel insurance will be offered by competing travel insurance companies and their coordinating agents. In any competitive market, there is a great deal of diversity in regards to what situations are specifically covered or offered in a policy or product, to what extent the policy is offered and the overall price of the package.

As is common in all insurance markets, travel insurance companies will specialize in different aspects of coverage and will provide specific packages based on where the individual is travelling to, what mode of transportation they are using and the type of travel insurance offered.

Types of Travel Insurance:

In addition to a traditional travel insurance policy, an individual can purchase temporary or cheap travel insurance, which is usually arranged at the time the trip is booked. Temporary or cheap travel insurance will provide coverage for exactly the duration of the trip.

This form of cheap travel insurance is less extensive than continuous travel insurance, which can be purchased from travel agents (work for travel insurance companies) or directly from travel suppliers, such as tour operators or cruise lines. That being said, a comprehensive travel insurance package, purchased from a travel supplier, will tend to be less inclusive than a policy offered by an insurance company.
Travel insurance will often provide coverage to an assortment of travels; student travel, leisure travel, adventure travel, business travel, international travel and cruise travel are all options or forms of travel that can be covered by travel insurance.

Travel Insurance Reviews:

Travel insurance reviews are resources, typically offered online, that enable individuals to evaluate and price various travel insurance plans. Travel insurance reviews will evaluate all major travel insurance companies and their coordinating travel insurance policies; however, travel insurance reviews are limited in regards to their personalization and customization.

For example, single parents travelling with young kids do not need the same type of coverage as retirees vacationing on a cruise. Furthermore, a short summer vacation will require different coverage than a longer trip, such as living abroad. These characteristics play a crucial role in the evaluation of a plan’s effectiveness, because often times, the most suitable form of insurance is solely dependent on your particular trip.
Although a lack of personalization damages the true effectiveness of travel insurance reviews, it is still necessary to use the resource when deciding on purchasing a policy.  As a general tool, travel insurance reviews will tend to cater to larger companies, who are able to offer a wider array of protections and policies. Travel insurance companies aside, the following aspects are sought after and recommended for the following types of travel:

What kind of Travel Insurance do I need?

Best Travel Insurance Plans for Vacation or General Travel: Traveller should have a pre-existing condition waiver, financial default, trip interruption (up to 150% reimbursement for unused travel costs), medical coverage (min $25,000), baggage coverage (min $1,000), evacuation coverage (min $100,000)

Best Travel Insurance Plans for Family Travel: Coverage for children is free, medical coverage (min $25,000), repatriation coverage (enables the kids to travel home if parents are hospitalized) and ‘cancel for any reason’ available. 

Based on Travel Insurance Reviews, the two best and most comprehensive travel insurance policies for family travel are the Worldwide Trip Protector from Travel Insured International and the Gold Protect Assist plan from Travel Guard

Van Insurance In Depth

Van Insurance In DepthWhat is Van Insurance?

Van insurance is a specialized form of auto insurance that is designed and offered specifically for owners of vans. This form of insurance is primarily purchased by shipping, transportation or service companies who frequently use vans to execute their day-to-day business model.

Auto insurance, in the United States, is a compulsory product; all owners, meaning to whom the car is registered, must obtain car insurance before using the nation’s public highways and roads. As a result of this mandate, all owners of vans, particularly those aforementioned business industries, must acquire an active van insurance policy before operating the vehicle.

Similar to car insurance products, a van insurance policy will fluctuate, in regards to what is covered, the premium, the deductible and the rates, based on a case by case circumstance. Furthermore, van insurance policies can be personalized and tailored to meet a van owner’s specific wants.

How much does Van Insurance Cost?

Van insurance, in most cases, is more expensive than car insurance; this statement, becomes affirmed when a party insures a can used strictly for commercial purposes. That being said, the cost of van insurance is based on a pricing model used to evaluate all insurance products.

Van insurance rates, like so many forms of insurance policies, are delivered following an evaluation or assessment of the applicant’s risk. As a general statement, if the prospective insurance purchaser is more likely to get in an accident than a normal driver his or her van insurance rates will be higher than average.
To evaluate the riskiness associated with the driver, meaning the probability that he or she will get in an accident and thus require a claim, the insurance company will observe the driver’s basic information (age, occupation and credit score) his or her driving record (number of speeding tickets, traffic violations and accidents) and the value of the goods to be insured.
In addition to an assessment of risk, insurance rates for the majority of insurance policies are also calculated by considering the cost of the underlying car or van. If the van is more expensive than average the price of repairing the vehicle will invariably be higher. As a result of this increase cost, the insurance company will charge a higher premium—similar to the buyer, the insurance company is attempting to mitigate risk through the delivery of an appropriate pricing model.

Types of Van Insurance:

The majority of insurance companies will offer separate policies for personal and business van use; the separation is applied simply because the two vans are used differently. Vans that are used for business purposes typically rack up more miles than a van solely dedicated for personal use.

In addition to the extended miles, business vans will also carry heavy equipment as well as multiple people—both of these characteristics greatly alter the insurance company’s risk assessment. Furthermore, a business van typically has visibility, as well as stability issues given the nature of the company; both of these represent safety concerns for the insurance provider.

Van insurance is also typically available to those individuals who rent vans, regardless of time frame or intended use. The majority of personal insurance policies will cover individuals driving rental vans; however, coverage in this sense is severely limited. Rental van insurance can provide additional protection to the drivers, as well as the passengers, of rented vans.