If you answer yes to any other to following questions – You SHOULD have insurance.
1. Do you own a car? Yes/No
2. Do you own a TV? Yes/No
3. Do you own Property? Yes/No
4. Do you rent a property Yes/No
5. Do you own a computer? Yes/No
6. Do you own a motorcycle? Yes/No
If you answered yes to ANY Of these questions – then you should have insurance.
If you answered yes to 1 or 6 – you should have full comprehensive vehicle insurance – let me tell you why – If you have an accident, then you are covered for replacement vehicle (at market cost) all damage is covered, even of the other driver doesn’t have insurance. No court problems, no out of pocket expenses, only the excess. If you ONLY had 3rd party fire and theft. You would have to pay for a replacement vehicle AND if you have a loan for the vehicle, not only will you have cost of the loan, but the cost of buying a new car!
If you answered yes at 2,4,5 – then you should have contents insurance (unless you are still at home with mum and dad). If (let’s cross our fingers, there is not) that you have a building fire. Regardless of what happens, you pay 50% of the cost of the fire brigade turnout and also the standby costs. Not a pretty thing even if you are employed. Last I heard $1500.00 per QUARTER hour PER truck. - Can you honestly afford that?
If you answered yes at 3 – then you should have building insurance, again if there is a building fire. You have to pay 50% of the fire brigade turn-out costs.
The NSW bushfires of 2001/2002 – 31% of buildings were NOT insured and the rate was far higher for contents. This is mostly due to a misconception that the owner of the property takes out contents insurance also. THIS IS NOT THE case.
Also under-insurance is a big problem. The cost of rebuilding is NOT the cost to purchase the property, nor the cost of just re-building per square foot, you must also include site clearance etc, which is a genuine cost of re-building.
Assess your building and contents on a yearly basis, make it a habit to check the CPI rate and also if you have added new assets/renovated your house in the past year.
Vehicle insurance, make sure you are covered for new for old for the first 12 months of a brand new car. Check the policy costs and added benefits and compare the best value BEFORE committing.
Insurance saves a lot of heart-ache – remember that!