Your Guide to Buying Travel Insurance

If you are going on holiday outside of the country, it is highly recommended that you get travel insurance. This type of insurance can protect you financially in a variety of unpleasant situations. There are many different types of emergencies that can arise while on holiday, so it’s important to be prepared. By following a few simple tips, you can get the best deal on one of these policies.

What does Travel Insurance do?

Travel insurance can provide you with help if you:

  • Get sick and need medical treatment.
  • Lose your luggage or have it stolen.
  • Lose your passport.
  • Need to suddenly cancel your trip at the last minute.

No matter where you are travelling to, this type of insurance will be able to help if the need for it arises. It is particularly important to get travel insurance if you are going to a country that you have never visited before.

Deciding on the Level of Coverage

The extent of your travel insurance is very important to consider. You should make a point of getting a policy that will cover a wide range of things, including reimbursement for medical care. If you suddenly fall ill or become injured in another country, you will definitely be glad you have this type of policy. Make sure to ask each provider about the different features they offer.

Annual vs. Single Trip Cover

You can choose to pay for travel insurance on a yearly basis or for a single trip. If you do a lot of travelling, it might make more sense to pay an annual fee. Those who do not travel often should look into getting cover for a single trip. Take some time to find out which option is more cost-effective so you don’t spend more than you need to.

Reducing Costs

There are a number of ways to reduce the amount of money that you pay for travel insurance. You should check your current home insurance policy to see if it covers items outside of your home. This can potentially help you save some money. You should also make a point of buying online, as it tends to be quite a bit cheaper. There are all sorts of deals that you can get when you spend some time browsing the web.

If you are travelling with a group, you should look into getting a group policy. This can help you cut costs in a big way. Most insurance providers have a minimum number of people for group policies, so you will need to find out what the rules are.

Ask About Breakdown Cover

Many travel insurance policies include breakdown cover, which can be of immense help if your car breaks down while you are on your trip. You will be given a number to call so that a technician can be sent to look at your car. This can be very helpful if you get a flat tyre, need a jumpstart or even a tow to a local garage. The main reason to consider getting breakdown cover is that it makes this type of situation a lot less stressful and expensive. You can save a lot of money, as you won’t be paying full price for a tow.

Check Your Credit Card

Many credit cards offer travel insurance as an add-on, so you will need to check with your provider. You could get an especially good deal by going through your credit card. Make sure that you take the time to read the fine print before signing anything. You will need to know about all of the terms and conditions of the travel insurance policy.

Read the Reviews

When you are searching for the right company to provide you with travel insurance, do some research online. The more time you spend reading reviews of these providers, the easier it will be for you to choose one that you can trust. A good travel insurance company will have mostly positive reviews from customers. You should also try asking people you know if they recommend a good provider for this type of insurance. These are just a couple of the more effective ways to narrow down your list of options.

Should I get Travel Insurance?

Anyone who is planning on travelling to another country should get some amount of travel insurance. You don’t have to get the most comprehensive policy, but it’s something you should explore in depth before making any decisions. Considering all of the possible things that can happen to you while travelling, it is a good idea to get the proper cover. Those who travel a lot for work or pleasure will definitely need to pay for this type of insurance because of how helpful it can be in many different circumstances.

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Is it Better to have a Guarantor for a Loan?

When we take out a loan, we need to convince the lender that we have the ability to repay it. They will do certain checks in order to look at this. If the loan is secured against property, such as a home or car, then they will check the value of these to make sure that they will be able to sell them and make back the money owed if necessary. If it an unsecured loan, then they will look at income and credit rating. If they are not satisfied with these then they will not allow the loan. However, it is possible with some loans, that you can nominate a guarantor, who has a good credit record, who will make any repayments that you are unable to. There are pros and cons to having a guarantor and it is worth thinking about them before signing up to a loan like this.

Pros of having a guarantor

Having a guarantor will allow those that have nothing to secure against a loan and a poor credit record, to still be able to borrow money. This means that it can be a great advantage if money is needed. Knowing that there is someone there to help out if you struggle with loan repayments can also be reassuring compared with having the responsibility all on your own.

Cons of having a guarantor

Obviously you will need find someone willing to be a guarantor for you. This could be difficult depending on whether you know anyone who has a good credit record and will be prepared to do this for you. You also need to make sure that you are in agreement with them as to what will happen if they have to make a repayment as to whether you will repay them and when you will do this. If you do not sort this out between you then you could end up falling out over it. You may also find that there could be jealously among family or friends if you do not have to repay It but they do not get anything themselves. Obviously if they do not know about it then this will not be a problem.

Cost

Another big factor is the cost. All loans cost money and some are more expensive than others. A guarantor loan tends to be on the pricier side. This means that if you have other options then it might be wise to take those up instead. Do compare prices though as even if something is generally dearer, it might depend specifically on your credit rating and the lender as to whether it is a dearer option for you. Lenders may change their rates from the advertised ones you see, if they feel that you are more of a risk than the average customer. Therefore make sure you contact the lenders for quotes rather than just assuming that they will lend to you at their advertised prices.

Do make sure that you take all cost into account as well. It is not just interest that tends to be charged on loans but other costs as well. You may have setup costs and there will be charges if you are late on a repayment or miss one and maybe if you want to overpay. Therefore you need to take these things into account as well. Even if you think that you will make all of the repayments on time, it is still worth just checking what the charges would be. This should not only give you more incentive to make sure that you do pay them on time but you will be able to compare the costs across different lenders.

Conclusion

It is worth thinking about whether you really need the loan. If you do then make sure that you find out what types of loans you will qualify for and then compare then to see which is cheapest and which provides the best value for money. If a guarantor loan is one of the options that you want to pursue then consider who you could ask to be a guarantor for you and whether they are likely to want to help you out. It can be worth chatting to them beforehand about what their expectations will be with regards to the loan. Make sure that you agree on whether you will pay them back if they do have to help out and if so, how quickly they would want their money back. It might be best to even write down a agreement and sign it, so that you cannot argue in the future about what the original agreement was. It is not good to fall out with a friend or family member over anything and money can often be a particularly sensitive issue and so it is wise to be really careful in this situation.

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Should I get a Loan to Afford a Better House?

If we are looking to buy a home, whether to improve on the one we have or to buy one for the first time, then we will need a lump sum of money to help us out. If we are taking on a mortgage for the first time we will need to save up for a deposit and if we are moving home, we will need to pay the estate agent, solicitor, removal company and for lots of other bits and pieces. Therefore we will need money in order to do this. It can be tempting to borrow money in order to have the money available to do this. There are advantages and disadvantages of doing this and so it is well worth some thought.

Advantages of the loan

If you take out a loan it will mean that you will have the money that you need more quickly compared with waiting to save up for it. You will be able to build up your deposit quickly or have the money available to pay for the costs of moving home. It can be quick and convenient as well. You will not have to think about putting money aside each month to save up.

Disadvantages of the loan

Having a loan can make getting a mortgage difficult. When assessing you for a mortgage the lender will look at your credit record and see whether you have enough money available each month to cover the loan repayments. If they see these loan repayments coming out they may not allow you to have the mortgage. It will also have an impact on your credit rating which they will consider as well. The point of having a deposit is to show that you can save money regularly, which shows you have budgeting skills that you can use to put towards making your repayments on the mortgage. If you just borrow the money for the deposit then you will not show that you are capable of budgeting and so it may put lenders off completely.

If you are moving house then having a loan will not have such an impact. It is likely that you will be staying with the same mortgage provider and so there will be no reassessment of your financial status. However, if you are borrowing more money, due to moving to a more expensive property, then there may be an assessment. Then this loan could work against you. Of course, you could delay getting it out until the extension to your mortgage is approved but you will need to make sure that you will be able to afford to repay the mortgage, loan and cover all of your other costs. If you are moving to a larger property then you will have increased costs in other areas too such as insurance, tax, heating and maintenance.

Points to consider

As you can see there are a lot more disadvantages to advantages. It could be well worth taking the time to save up rather than taking out a loan with a company like Emu.co.uk so that you do not impact your credit record or your chances of getting a mortgage or increasing your current one. You also need to think about whether you can afford the repayments if you take a loan, which you will not have to worry about if you save up.

It can also be worth calculating the cost of a loan compared with saving up the money. Loans are expensive and so if you can borrow less or not borrow at all you will save a lot of money. Obviously very few of us could afford to save up to cover the cost of a full house, but the more we can save towards the deposit, the less we will have to borrow and the cheaper our mortgage will be.

Often when moving, people will add on the costs of moving to their mortgage and so they do not have to get a separate loan. This can feel like it is better as mortgage interest rates tend to be lower than loan rates. However, you repay a mortgage for a long time and so you will be being charged interest for a lot more months and so it could be cheaper to get a loan and repay that quickly, rather than borrow against the mortgage and repay it slowly. Again, it is worth doing the sums to work out what the cost difference is.

It may seem like a lot of hassle and you may not really want to wait and save up especially if you have to wait a few years. However, it can make a big difference to your future and the amount of money that you have available to spend then, so you may regret it if you do not wait and save up.

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