Having something saved for a rainy day is great if you find yourself in a tight spot. But insurance could save you from having to dip into your emergency savings.
While you probably don’t need to insure everything in your life, there are a handful of insurance types you really shouldn’t be without. Especially if you want to save your savings for the things you actually want. Here are the ‘Big Three’ when it comes to insurance.
1. Life insurance
Thinking about what happens when you’re no longer around may not be very appealing, but life insurance could be crucial for those you leave behind. If you have a mortgage or a family, you need to seriously consider the benefits of life cover.
2. Home insurance
This generally gets broken down into two parts. If you own your home, buildings insurance covers you for any damage. If you rent, your landlord should have buildings insurance, so you only need to provide contents insurance to cover your own belongings. Contents insurance can also cover your property outside the home (things like lost jewellery, a broken phone or a stolen bike).
Using a comparison service such as Money Supermarket allows you to compare different home insurance providers. You can get a free quote in less than five minutes.
3. Car insurance
This is a legal requirement for all drivers, with cover tending to be in one of three categories: Fully comprehensive, Third party, fire and theft, or Third party. This is a simple one – if you have a car, you need insurance!
Using a comparison service such as Money Supermarket allows you to compare different car insurance providers. You can get a free quote in less than five minutes.
Insurance can feel like you’re paying for nothing, and gambling on a worst-case scenario that may never happen. But, by living without insurance, you’re already gambling with your hard-earned savings. All three examples above could help keep your savings safe for when you really need them.
Transparency is important to us, we choose our partners very carefully, and only present financial products we think will work for you. If you take out a policy through Money Supermarket using the above links, then they will pay us commission for this. This income helps us to continue to improve our service for our users and keep Loqbox free.
This post was written and compiled by the credit experts behind Loqbox – a completely free way to build your credit history by saving a little each month. To sign up or read more about the clever way Loqbox works, head to Loqbox.com.
This is part of our Two-minute Money blog series – unlocking the secrets of the financial system, two minutes at a time.