What Types Of Insurance Are There?

Insurance in some form or another is available for pretty much everything. Many people take out insurance for all sorts of reasons, ranging from insurance for your mobile phone and portable devices, to home insurance, or even travel insurance. One of the most common insurance products taken out by the public of the UK is motor insurance which can come in many forms, and levels of cover such as Third Party Only, Third Party, Fire & Theft, or Comprehensive insurance. Motor insurance is a broad term and there are other, more specific, types of policy within motor insurance, for different types of drivers such as people with convictions or van drivers.

What Happens If I Need Specialist Insurance?

There are some people, perhaps within certain demographics, that may need a more specific, specialist insurance policy. One example of this could be motorists who are under the age of 25, and would therefore be classed as a young driver. Young drivers are seen as a higher risk by insurers due to statistics gathered about their driving performance and likelihood of being involved in an accident and making a claim. So who needs Young Driver insurance? Basically, if you are under the age of 25, then you would likely qualify for a young driver insurance policy. Depending upon your driving experience and record, many mainstream insurance brokers might not be able to (or want to) provide you with a quote, so you may be best advised to find a broker that has a specialist young driver insurance department that caters for your specific requirements.

Why Is Insurance Needed?

Most people who take out insurance policies do so because they need to insure something of high value, and in many cases, such as car insurance, van insurance or Employer’s Liability it may actually be a legal requirement, with severe ramifications imposed if an insurance policy isn’t taken out. For some businesses, such as motor traders, there might be people who think Why is it important to have Motor Trade insurance? When insurance isn’t a legal requirement you need to think of what would happen if you didn’t have insurance, and could you handle the repercussions (financially). For example, if you are a mechanic and your garage was broken in to and all of your tools were stolen, could you afford to replace them without insurance? You need to consider what would happen, and whether you could continue to work without them?

How Are Insurance Rates Calculated?

A number of factors are taken into account when an insurance premium is underwritten (when the rate is calculated) by an insurance company. To use a car insurance premium as an example, the safety and crime statistics in the area you live in, the year, the make and the model of your car, how you use your car such as social use only, for commuting to and from work, or for business use, will all be taken into account. Insurers will also consider whether you’ve had any driving offences or any claims on previous car insurance policies, and finally how many years you have been driving for.

What Happens When I Make A Claim On My Policy?

If you are ever in the unfortunate situation of having an accident on your insurance policy, whether that’s for motor trade insurance, home insurance, car insurance, or any other type of insurance product, the first thing you need to do is report the incident to your insurance provider. Usually someone will then be assigned to your case, and you will need to provide them with all of the details of the incident. Your Claims Handler will discuss your options going forward, and help guide you through the process, taking as much of the pain and hassle away from you as possible. If you’re at fault or if there is any excess on the policy, you will need to pay that before any funds are released to you.


Insurance can be something of a complex process at times, but it’s important to remember that for many things in life it is more than necessary. If you are taking out an insurance policy it’s always important to remember what the insurance policy entails, such as any excess fees you may have to pay in the unfortunate event you need to make a claim on your insurance policy. When getting an insurance policy the best course of action is always to speak to a specialist insurance broker to get your queries and questions answered, and they will be able to assist you in your decision.