MOTs are a necessary but potentially expensive evil, especially when some dodgy garages mark as faulty, things that would pass elsewhere in order to generate business for their own repair services. There's an easy way to bypass these charges, with many MoneySavers reporting savings of £100 - £500.
How to minimise MOT and repair Costs
Having a valid MOT certificate is an important safety and legal must for all drivers. There are two costs and it's important to look at both in conjunction.
The MOT itself. The fees aren't fixed, but there are set maximums for tests. These are £50.35 for cars, 4x4s and caravans; £34.65 for motorbikes with side cars or £27.15 for motorbikes.
The Cost of Repairs. This is the really big one, you may be able to find a cheap special offer £20 MOT, but if the repairs on the back end come to £1,500, then that's irrelevant.
The Big Trick To Cut Costs - Use local MOT centres.
This is all about using Local Council/Government MOT test centres. Many local councils have their own MOT testing stations for council vehicles (i.e. buses and ambulances). Yet by law these test centres must be open to the general public. As they only carry out tests, and not repairs, there's no incentive for mechanics to find faults that don't exist.
Thousands of savvy MoneySavers have used these test centres and report their cars consistently passed the test or were told they needed fewer repairs when compared to having MOTs done at other garages. A typical comment is, "“My usual garage said to make it pass its MOT, repairs would cost almost £1,000. Following the article, I took it to the council test centre instead and it passed without any work needed.” If you follow this system, please feedback via the MOT test discussion area.
So while you may miss out on the special ‘cheap MOT testing' deal, the money you save in repairs should make up for it. Of course there are no guarantees, you may go to a Local Council test centre and be told repairs are needed, which is good, as it's for your safety and you always want to know if your car's got a problem.
Is this a safety compromise?
It's important to remember this isn't about getting a shoddy quick MOT that passes your car. Council run MOT centres are often some of the best out there, and they run the safety test stringently.
For example, one MoneySaver reports that having been quoted £700 of repairs to pass by his local dealer, he then got it passed without the need for repairs at the council centre. Due to this he reported the dealer to trading standard who took the car back and got it retested there; at which point it passed with no need for repairs. So he wrote to the dealer requesting a return of the test fee for 'non-compliance with the Road Traffic Act' and got a cheque with the money.
If you're not using a council-run garage
While this is about council-run MOT centres there are plenty of reputable independent garages that will do your MOT. If you're concerned about booking then check your local council's website to see if it has a list of vetted garages
How do I find a local council-run or used test centre?
Use the table below to find a test centre in your area that just does MOTs. If there's not one listed, try phoning your local county or borough council, or look on their website, which would be yourarea.gov.uk, for example www.dudley.gov.uk. The council should be able to tell you your nearest one.
This list is compiled with the feedback of MoneySavers across the country; so if you find one please add it to the Cheap MOT discussion. However as it's compiled by public feedback, do always check the details and its MOT status before using it.
From : http://www.moneysavingexpert.com
วันพฤหัสบดี, พฤศจิกายน 1, 2007
วันพุธ, ตุลาคม 31, 2007
Mobile Phones Full cost cutting plan
You've a better chance of picking the correct lottery numbers than mobile tariff. With over ten networks, each with up to 30 tariffs, sold at different prices with countless phones, from scores of retailers - the combinations are vast.
Yet my mobile phone cost cutting system could quickly find you a top price at speed, saving some over £1,000 a year.
Existing contract users
Switching network (e.g. Orange, O2, Three etc…) to a cheaper tariff means either losing your existing number, or having a temporary number for up to a month as it's ported across. Whilst it's usually the best way to save (details below), it puts many off, yet savings are still possible even without moving network.
Save without changing network
Change plan
Most networks have a vast range of tariffs and five minutes spent examining your usage can save a fortune. Often overspending is due to calling others' mobiles, so ensure you're on a ‘cross-network' package (meaning any inclusive (‘free') minutes include calling mobiles).
Bully your network into giving you a better than advertised package
Anyone on a contract mobile phone is holstering a serious MoneySaving weapon…. loyalty. If you're near the end of your mobile phone contract simply tell your provider ‘give me a better package or I'll leave', and most of the time it will. Read Batter Down Your Mobile Contract for a full how to.
Cheapest way to break your contract
If you're trapped into a naff, over expensive contract, it's still possible to port the number to a new provider, though you'll need to pay the monthly fee until the contract ends. The remedy's to reduce your package to the lowest tariff and either pay it off in one go or let it run until you're out of contract. Some networks may make you wait until you've had the tariff for six months though.
Get free texts
There's a clever loophole that will slash the cost of texting to a fraction of a penny per text from your mobile or get free texts via the web. Read Free Texts for full info.
Two steps to finding the correct package
There are a number of elements to a mobile bill, it's important to know whether you want PAYG or a contract tariff and that you are sure of your usage. Read a full guide to this.
Two websites allow you to find the cheapest tariff based on your phone usage, either OneCompare* or MoneySupermarket*. Both are quick and easy to use but OneCompare allows you to be more specific about peak and off-peak calls.
To do the comparison put in your usage, and indicate whether you want PAYG or contract (details in extended article). After that it quickly calculates the network and tariff that's cheapest for you. (More details on the phone and network in extended feature).
Don't confuse the ‘tariff' with the ‘price'
It's commonly misunderstood that the tariff alone dictates the price. Yet consider the tariff as the manufacturer's setting, which dictates the number of free minutes and call costs (both for PAYG and contract phones).
However, the price paid depends on the retailer, and discounting means vast differences as the table below shows. This is the price for exactly the same tariff with the same network.
For More Look At : www.moneysavingexpert.com
Yet my mobile phone cost cutting system could quickly find you a top price at speed, saving some over £1,000 a year.
Existing contract users
Switching network (e.g. Orange, O2, Three etc…) to a cheaper tariff means either losing your existing number, or having a temporary number for up to a month as it's ported across. Whilst it's usually the best way to save (details below), it puts many off, yet savings are still possible even without moving network.
Save without changing network
Change plan
Most networks have a vast range of tariffs and five minutes spent examining your usage can save a fortune. Often overspending is due to calling others' mobiles, so ensure you're on a ‘cross-network' package (meaning any inclusive (‘free') minutes include calling mobiles).
Bully your network into giving you a better than advertised package
Anyone on a contract mobile phone is holstering a serious MoneySaving weapon…. loyalty. If you're near the end of your mobile phone contract simply tell your provider ‘give me a better package or I'll leave', and most of the time it will. Read Batter Down Your Mobile Contract for a full how to.
Cheapest way to break your contract
If you're trapped into a naff, over expensive contract, it's still possible to port the number to a new provider, though you'll need to pay the monthly fee until the contract ends. The remedy's to reduce your package to the lowest tariff and either pay it off in one go or let it run until you're out of contract. Some networks may make you wait until you've had the tariff for six months though.
Get free texts
There's a clever loophole that will slash the cost of texting to a fraction of a penny per text from your mobile or get free texts via the web. Read Free Texts for full info.
Two steps to finding the correct package
There are a number of elements to a mobile bill, it's important to know whether you want PAYG or a contract tariff and that you are sure of your usage. Read a full guide to this.
Two websites allow you to find the cheapest tariff based on your phone usage, either OneCompare* or MoneySupermarket*. Both are quick and easy to use but OneCompare allows you to be more specific about peak and off-peak calls.
To do the comparison put in your usage, and indicate whether you want PAYG or contract (details in extended article). After that it quickly calculates the network and tariff that's cheapest for you. (More details on the phone and network in extended feature).
Don't confuse the ‘tariff' with the ‘price'
It's commonly misunderstood that the tariff alone dictates the price. Yet consider the tariff as the manufacturer's setting, which dictates the number of free minutes and call costs (both for PAYG and contract phones).
However, the price paid depends on the retailer, and discounting means vast differences as the table below shows. This is the price for exactly the same tariff with the same network.
For More Look At : www.moneysavingexpert.com
วันอังคาร, ตุลาคม 30, 2007
Cheap Loan Payment Protection
What is PPI?
Payment Protection Insurance (PPI) is seen by many as a welcome comfort. You pay a monthly premium, and then your loan repayments are covered, usually for a year, if you're unable to work due to accidents, involuntary unemployment or sickness. Some also include full repayment if you die.
Do you need it?
When getting a new loan, first decide whether you actually need PPI. Go through this checklist, to work out if you actually need a policy:
Are you covered by another policy (such as income protection)?
Do you have savings which would cover any repayments?
Would relatives or friends be able to help you out?
Answer yes to any of these, and you may be better off without PPI, as it can be expensive. In general, I'm not its greatest fan, but it does sometimes have its place.
Was your policy sold correctly?
Some people will have bought polices that are not suitable for their circumstances, e.g. for the self-employed, the unemployment element is commonly useless, as most policies' self-employment benefits are poor. Even if you're not self-employed, always read policy terms to check suitability. Often there are specific exclusions that may impact you or that you were not told about before you purchased the insurance. If you think this applies to you see the PPI Reclaiming article to see if you can reclaim the cost of your insurance.
Can I get PPI from my lender?
Yes, but that doesn't mean you should. Lenders advertise loan costs by quoting interest rates, yet this doesn't include the insurance cost, allowing some to play a sneaky trick. They keep the loan cheap, and load all their costs on the insurance. This way they can advertise cheap rates, but push unsuspecting customers to take out the expensive insurance.
Worse still, unless you specifically request a loan without PPI, some sign you up automatically, so it's possible to have PPI without even realising it. This hidden insurance cost makes a big difference. Take this example at the time of writing.
PPI – An Example Of How Just How Expensive It Can Be
At the time of writing (it will change this is just an example to show you):
If you borrow £10,000 over 5 years from the AA at a low 6% rate, it'll cost just under £195 a month, but with PPI it'd be just over £260, meaning the insurance adds £65 a month or £3,900 over the life of the loan.
Whereas Leeds Building Society's insured loan advertises a higher rate of 6.9% but has much cheaper insurance; it comes in at £220 a month – therefore its PPI adds just £23 monthly or £1380 over the loan's life.
Get PPI much cheaper
An increasing number of companies are beginning to sell standalone PPI policies, which can be used to protect any loans you've taken out much more cheaply than lenders' own insurance.
If you're going to do this, make sure you're not double covered. Uncheck the payment protection box on your loan form, and then go direct to one of these online insurers.
Getting the right cover
There are a few variations on the theme with PPI providers, and two basic choices you need to make when choosing which one is right for you.
Type of Cover. You can cover yourself against accidents and/or sickness and/or unemployment and/or terminal illness and/or death. The more of these you want covered, the more expensive the policy is.
Excess Period. Policies normally start paying out 30 or 60 days after the problem occurs, yet many of the best value are now ‘back to day one' which means they backdate the benefit so you'll be paid for the earlier period too.
The Cheapest PPI Providers
The cost is defined per £100 of your monthly repayment e.g. £5 per £100 means if your loan repayment is £200 per month, the PPI will cost you £10. Most standard PPI policies cost £10-£30 per £100.
Policies are split into those which vary quotes based on your age, and those that charge a flat rate for all applicants. The following are the cheapest 30 day payout, back to day one policies, for full ASU (if you're looking for just unemployment or just accident and sickness, these are still the winners).
Under 50s. Antinsurance (technically income protection, but simply apply for the amount of cover which matches your monthly mortgage repayment) is cheapest for anyone under 50, charging just over £1.70 per £100 for a 20 year old rising to £3.75 for a 49 year old, and Security First* comes a very close runner up.
Over 50s. Paymentcare* costs £3.95 per £100, and is available to both online, and non-web customers. Close behind is Burgesses Loan Insurance*.
What if I've already got expensive PPI?
If you already have a loan with PPI, some lenders allow you to cancel it while keeping the loan – and since regulatory changes last year, this is becoming increasingly common. This means it's possible to switch PPI to a standalone provider without changing the loan; useful for people whose credit score has deteriorated or face redemption costs for the loan itself.
Lenders mightn't make it easy though. They can delay on giving illustrations, and most customer service reps fail to understand the issues. Some banks simply don't allow separate PPI cancellations at all.
It does seem as though more lenders are currently making the move towards a more flexible policy though, but this may not apply to a policy you took out a few years ago so always check your own terms and conditions.
A Warning
Most new policies are void if there is a forseeability of redundancy or pre-existing conditions at the time they are taken out, so don't change policy if this is your situation. For more information, see Cutting the Cost of Existing Loans.
Here's a round-up of a few lender's policies. Where you can cancel separately it's worth remembering that the amount of rebate is not pro rata but will depend on the length of your loan and the period of time that has passed when you ask to cancel.
From : http://www.moneysavingexpert.com
Payment Protection Insurance (PPI) is seen by many as a welcome comfort. You pay a monthly premium, and then your loan repayments are covered, usually for a year, if you're unable to work due to accidents, involuntary unemployment or sickness. Some also include full repayment if you die.
Do you need it?
When getting a new loan, first decide whether you actually need PPI. Go through this checklist, to work out if you actually need a policy:
Are you covered by another policy (such as income protection)?
Do you have savings which would cover any repayments?
Would relatives or friends be able to help you out?
Answer yes to any of these, and you may be better off without PPI, as it can be expensive. In general, I'm not its greatest fan, but it does sometimes have its place.
Was your policy sold correctly?
Some people will have bought polices that are not suitable for their circumstances, e.g. for the self-employed, the unemployment element is commonly useless, as most policies' self-employment benefits are poor. Even if you're not self-employed, always read policy terms to check suitability. Often there are specific exclusions that may impact you or that you were not told about before you purchased the insurance. If you think this applies to you see the PPI Reclaiming article to see if you can reclaim the cost of your insurance.
Can I get PPI from my lender?
Yes, but that doesn't mean you should. Lenders advertise loan costs by quoting interest rates, yet this doesn't include the insurance cost, allowing some to play a sneaky trick. They keep the loan cheap, and load all their costs on the insurance. This way they can advertise cheap rates, but push unsuspecting customers to take out the expensive insurance.
Worse still, unless you specifically request a loan without PPI, some sign you up automatically, so it's possible to have PPI without even realising it. This hidden insurance cost makes a big difference. Take this example at the time of writing.
PPI – An Example Of How Just How Expensive It Can Be
At the time of writing (it will change this is just an example to show you):
If you borrow £10,000 over 5 years from the AA at a low 6% rate, it'll cost just under £195 a month, but with PPI it'd be just over £260, meaning the insurance adds £65 a month or £3,900 over the life of the loan.
Whereas Leeds Building Society's insured loan advertises a higher rate of 6.9% but has much cheaper insurance; it comes in at £220 a month – therefore its PPI adds just £23 monthly or £1380 over the loan's life.
Get PPI much cheaper
An increasing number of companies are beginning to sell standalone PPI policies, which can be used to protect any loans you've taken out much more cheaply than lenders' own insurance.
If you're going to do this, make sure you're not double covered. Uncheck the payment protection box on your loan form, and then go direct to one of these online insurers.
Getting the right cover
There are a few variations on the theme with PPI providers, and two basic choices you need to make when choosing which one is right for you.
Type of Cover. You can cover yourself against accidents and/or sickness and/or unemployment and/or terminal illness and/or death. The more of these you want covered, the more expensive the policy is.
Excess Period. Policies normally start paying out 30 or 60 days after the problem occurs, yet many of the best value are now ‘back to day one' which means they backdate the benefit so you'll be paid for the earlier period too.
The Cheapest PPI Providers
The cost is defined per £100 of your monthly repayment e.g. £5 per £100 means if your loan repayment is £200 per month, the PPI will cost you £10. Most standard PPI policies cost £10-£30 per £100.
Policies are split into those which vary quotes based on your age, and those that charge a flat rate for all applicants. The following are the cheapest 30 day payout, back to day one policies, for full ASU (if you're looking for just unemployment or just accident and sickness, these are still the winners).
Under 50s. Antinsurance (technically income protection, but simply apply for the amount of cover which matches your monthly mortgage repayment) is cheapest for anyone under 50, charging just over £1.70 per £100 for a 20 year old rising to £3.75 for a 49 year old, and Security First* comes a very close runner up.
Over 50s. Paymentcare* costs £3.95 per £100, and is available to both online, and non-web customers. Close behind is Burgesses Loan Insurance*.
What if I've already got expensive PPI?
If you already have a loan with PPI, some lenders allow you to cancel it while keeping the loan – and since regulatory changes last year, this is becoming increasingly common. This means it's possible to switch PPI to a standalone provider without changing the loan; useful for people whose credit score has deteriorated or face redemption costs for the loan itself.
Lenders mightn't make it easy though. They can delay on giving illustrations, and most customer service reps fail to understand the issues. Some banks simply don't allow separate PPI cancellations at all.
It does seem as though more lenders are currently making the move towards a more flexible policy though, but this may not apply to a policy you took out a few years ago so always check your own terms and conditions.
A Warning
Most new policies are void if there is a forseeability of redundancy or pre-existing conditions at the time they are taken out, so don't change policy if this is your situation. For more information, see Cutting the Cost of Existing Loans.
Here's a round-up of a few lender's policies. Where you can cancel separately it's worth remembering that the amount of rebate is not pro rata but will depend on the length of your loan and the period of time that has passed when you ask to cancel.
From : http://www.moneysavingexpert.com
วันพุธ, ตุลาคม 10, 2007
Travel Insurance
Should you opt for annual or single-trip insurance?
There are two types of travel insurance policy, and both can be good value in the right circumstances:
Annual multi-trip travel insurance.
This covers all trips during a year for a one-off fee, within a set maximum number of days away (usually between 30 and 60). Trips are mostly defined as business or travel overseas (even a day trip), or more than two consecutive nights away in the UK at prepaid accommodation starting the moment you leave until the moment you return.
Winter sports may be included, usually for a limited number of days, though do check it covers equipment and any more unusual sporting pursuits.
Single trip travel insurance.
This has been given a bad name due to over-expensive travel agents’ policies. Actually, do it right (see below) and it can be good value, just a few pounds for a week away.
The rough rule of thumb for this is:
If you go away more than two times a year, including weekend breaks, you're better off with an annual policy.
The exception to the rule
For those tripping to the USA an annual policy may be cheaper than single trip cover and often is cheaper than cover for two single trip policies.
USA cover is expensive because of the high medical costs, but annual policy prices are calculated on average trip demographics (roughly one long haul and one short haul week away). Therefore USA go-ers grabbing annual policies are effectively being subsidised by people heading to medically less costly destinations.
Keeping the costs down
What to cover
Obviously those who enjoy naked high-wire unicycling in Foreign Office black-listed territories will need specialist policies. However for most, while cover terms do vary, they don't vary excessively.
Insurers’ classic trick is, “why not upgrade to our platinum cover, with £20 million worth of medical cover etc.” Yet the chance of needing medical limits over £2 million is negligible, leaving you paying for flatulent cover.
Personal liability cover, which pays out if you damage other people or their property, should be £1 million; and also ensure there’s cover for cancellations and curtailments, luggage and possessions possibly including lost cash, legal expenses and delay.
Annual Policy Picking
Family insurance is cheaper. Combined insurance for a couple or family usually costs less as the risks increase more with ‘each trip’ than 'each person'. However some policies don’t cover individual family members, and those that do, may require notifying first so always call and check.
Europe-only cover is cheaper. If you’re unlikely to venture further afield, pick European only cover. You should be able to extend the territory if necessary.
Don’t trust credit card insurance
There’s a lot of confusion about credit card travel insurance. Often it’s actually only travel accident insurance, which only covers accidents had while in a train, plane or hire car paid for on the card, so never think this means you're covered.
A few platinum cards do genuinely offer free travel insurance, though the cover levels are usually poor and usually you must pay both the deposit and full holiday cost on the card or you’ll fall foul of their conditions.
European Health Insurance Card (EHIC)
The European Health Insurance Card (EHIC) has replaced the old E111 card and entitles the holder to free or discounted medical treatment in any EU country plus Switzerland.
It isn’t a substitute for travel insurance, as medical cover can be very limited and it won’t cover repatriation costs or lost money, baggage or cancellation. However it’s a useful safety net and travel insurers often request it; meaning you mightn't need to pay an excess when claiming. It's available for free on the web, from Post Offices or 0845 606 2030 .
The cheapest policies
The following is the result of comparing over 50 insurers, brokers and price comparison websites’ prices; unless stated they all include baggage and personal possessions cover. In the past both big and small travel insurers have collapsed, so there are never cast iron guarantees, but all the companies listed use FSA regulated underwriters - the basic check.
Individual's annual policy
Family's annual policy
Over 65s annual policies
Pre-existing medical conditions
Single Trip/Backpacker policies
WARNING: These travel policies have been picked on basic criteria, always check the policy details are suitable for your specific needs before buying one.
Annual Multi-Trip for one person
Europe only. For the under 50s Travelinsuranceweb* is £24; for under 65s Flexicover is £25, yet don't go direct for this, it's only available at this price via a deal it has with commercial price comparison site Moneysupermarket*. If you want basic winter sports cover included, an Insureandgo* policy can be obtained for £30 if you opt for the highest excess and no baggage cover; whereas Flexicover* at £33 includes baggage.
World-wide. Flexicover is cheapest at just £32, but again only if you go via comparison service Moneysupermarket*. If you want basic wintersports cover included OUL Direct* is £42.50.
Annual Multi-Trip for couples/a family
A family is usually defined as two adults and any number of dependents under 18 (or older if in full time education), though always check. These policies are normally intended for a family travellng together, yet individuals will usually be covered for independent travel too, provided you notify the insurer before you go. Most policies charge couples roughly the same as families.
Europe only. Flexicover is £35 if you stick within Europe, yet don't go direct to it for this, or you'll pay more. It's only available at this price via a deal it has with commercial price comparison site Moneysupermarket*; if you want basic wintersports AtlasDirect is £48.
World-wide. Flexicover costs £40, yet again don't go direct to it for this, it's only available at this prices via a deal it has with commercial price comparison site Moneysupermarket*. If you want basic winter sports cover included OUL Direct is £60 but again only via Moneysupermarket*
Over 65s Annual Multi-Trip
The game changes for the over-65s, primarily because insurer’s risk charts predict more claims are likely, so sadly even those in perfect health pay more. Those rejected on grounds of health should see the note below.
Age 65-74: The Flexicover* policy is £26 for an individual in Europe (£37 for a couple), and £36 worldwide (£61 for a couple).
Age 75–80: Above 75 and the cost jumps. CIS home option cover allows individuals travelling in Europe a policy for £84 and worldwide for £154; this is technically supposed to be part of its home insurance package, but it will allow you to opt for standalone travel insurance. For couples in Europe Help the Aged is £160 and worldwide Bradford and Bingley is £225.
Over 80: Help the Aged has an annual policy for individuals costing £120 in Europe (£180 for a couple) and £380 worldwide (£570 for a couple). Though at these prices it's worth trying for single cover.
Cost cutting if you've pre-existing medical conditions
Older people and those who’ve had serious past medical problems, can often be charged ridiculous amounts. If that’s the case, opt for single trip cover, not annual, and avoid destinations with costly medical treatments, especially the USA though Spain can be an issue too. However do remember the EHIC card (see above) means within the EU you're entitled to emergency medical treatment.
There are specialists for those with pre-existing conditions, Medicover and MIA Online, get benchmark quotes from and then see if you can beat it using Cover My Travels, Saga, Age Concern, and Help the Aged. If the cover is still unaffordable, the price may drop considerably if you ask insurers to exclude pre-existing conditions; though it’s then your judgment call on the risks of going with limited cover.
Got a good deal?
I'd invite all MoneySavers to record any top deals for older travellers/pre-existing conditions. Add yours/read others
Single trip and backpackers' insurance
For obvious reasons, it's impossible to list the best buys for every single trip option. Therefore the easiest solution is to use websites MoneySupermarket*, Confused.com* or Squaremouth*, which offer an automated travel insurance price comparison service. Use all three if you can.
From : http://www.moneysavingexpert.com
There are two types of travel insurance policy, and both can be good value in the right circumstances:
Annual multi-trip travel insurance.
This covers all trips during a year for a one-off fee, within a set maximum number of days away (usually between 30 and 60). Trips are mostly defined as business or travel overseas (even a day trip), or more than two consecutive nights away in the UK at prepaid accommodation starting the moment you leave until the moment you return.
Winter sports may be included, usually for a limited number of days, though do check it covers equipment and any more unusual sporting pursuits.
Single trip travel insurance.
This has been given a bad name due to over-expensive travel agents’ policies. Actually, do it right (see below) and it can be good value, just a few pounds for a week away.
The rough rule of thumb for this is:
If you go away more than two times a year, including weekend breaks, you're better off with an annual policy.
The exception to the rule
For those tripping to the USA an annual policy may be cheaper than single trip cover and often is cheaper than cover for two single trip policies.
USA cover is expensive because of the high medical costs, but annual policy prices are calculated on average trip demographics (roughly one long haul and one short haul week away). Therefore USA go-ers grabbing annual policies are effectively being subsidised by people heading to medically less costly destinations.
Keeping the costs down
What to cover
Obviously those who enjoy naked high-wire unicycling in Foreign Office black-listed territories will need specialist policies. However for most, while cover terms do vary, they don't vary excessively.
Insurers’ classic trick is, “why not upgrade to our platinum cover, with £20 million worth of medical cover etc.” Yet the chance of needing medical limits over £2 million is negligible, leaving you paying for flatulent cover.
Personal liability cover, which pays out if you damage other people or their property, should be £1 million; and also ensure there’s cover for cancellations and curtailments, luggage and possessions possibly including lost cash, legal expenses and delay.
Annual Policy Picking
Family insurance is cheaper. Combined insurance for a couple or family usually costs less as the risks increase more with ‘each trip’ than 'each person'. However some policies don’t cover individual family members, and those that do, may require notifying first so always call and check.
Europe-only cover is cheaper. If you’re unlikely to venture further afield, pick European only cover. You should be able to extend the territory if necessary.
Don’t trust credit card insurance
There’s a lot of confusion about credit card travel insurance. Often it’s actually only travel accident insurance, which only covers accidents had while in a train, plane or hire car paid for on the card, so never think this means you're covered.
A few platinum cards do genuinely offer free travel insurance, though the cover levels are usually poor and usually you must pay both the deposit and full holiday cost on the card or you’ll fall foul of their conditions.
European Health Insurance Card (EHIC)
The European Health Insurance Card (EHIC) has replaced the old E111 card and entitles the holder to free or discounted medical treatment in any EU country plus Switzerland.
It isn’t a substitute for travel insurance, as medical cover can be very limited and it won’t cover repatriation costs or lost money, baggage or cancellation. However it’s a useful safety net and travel insurers often request it; meaning you mightn't need to pay an excess when claiming. It's available for free on the web, from Post Offices or 0845 606 2030 .
The cheapest policies
The following is the result of comparing over 50 insurers, brokers and price comparison websites’ prices; unless stated they all include baggage and personal possessions cover. In the past both big and small travel insurers have collapsed, so there are never cast iron guarantees, but all the companies listed use FSA regulated underwriters - the basic check.
Individual's annual policy
Family's annual policy
Over 65s annual policies
Pre-existing medical conditions
Single Trip/Backpacker policies
WARNING: These travel policies have been picked on basic criteria, always check the policy details are suitable for your specific needs before buying one.
Annual Multi-Trip for one person
Europe only. For the under 50s Travelinsuranceweb* is £24; for under 65s Flexicover is £25, yet don't go direct for this, it's only available at this price via a deal it has with commercial price comparison site Moneysupermarket*. If you want basic winter sports cover included, an Insureandgo* policy can be obtained for £30 if you opt for the highest excess and no baggage cover; whereas Flexicover* at £33 includes baggage.
World-wide. Flexicover is cheapest at just £32, but again only if you go via comparison service Moneysupermarket*. If you want basic wintersports cover included OUL Direct* is £42.50.
Annual Multi-Trip for couples/a family
A family is usually defined as two adults and any number of dependents under 18 (or older if in full time education), though always check. These policies are normally intended for a family travellng together, yet individuals will usually be covered for independent travel too, provided you notify the insurer before you go. Most policies charge couples roughly the same as families.
Europe only. Flexicover is £35 if you stick within Europe, yet don't go direct to it for this, or you'll pay more. It's only available at this price via a deal it has with commercial price comparison site Moneysupermarket*; if you want basic wintersports AtlasDirect is £48.
World-wide. Flexicover costs £40, yet again don't go direct to it for this, it's only available at this prices via a deal it has with commercial price comparison site Moneysupermarket*. If you want basic winter sports cover included OUL Direct is £60 but again only via Moneysupermarket*
Over 65s Annual Multi-Trip
The game changes for the over-65s, primarily because insurer’s risk charts predict more claims are likely, so sadly even those in perfect health pay more. Those rejected on grounds of health should see the note below.
Age 65-74: The Flexicover* policy is £26 for an individual in Europe (£37 for a couple), and £36 worldwide (£61 for a couple).
Age 75–80: Above 75 and the cost jumps. CIS home option cover allows individuals travelling in Europe a policy for £84 and worldwide for £154; this is technically supposed to be part of its home insurance package, but it will allow you to opt for standalone travel insurance. For couples in Europe Help the Aged is £160 and worldwide Bradford and Bingley is £225.
Over 80: Help the Aged has an annual policy for individuals costing £120 in Europe (£180 for a couple) and £380 worldwide (£570 for a couple). Though at these prices it's worth trying for single cover.
Cost cutting if you've pre-existing medical conditions
Older people and those who’ve had serious past medical problems, can often be charged ridiculous amounts. If that’s the case, opt for single trip cover, not annual, and avoid destinations with costly medical treatments, especially the USA though Spain can be an issue too. However do remember the EHIC card (see above) means within the EU you're entitled to emergency medical treatment.
There are specialists for those with pre-existing conditions, Medicover and MIA Online, get benchmark quotes from and then see if you can beat it using Cover My Travels, Saga, Age Concern, and Help the Aged. If the cover is still unaffordable, the price may drop considerably if you ask insurers to exclude pre-existing conditions; though it’s then your judgment call on the risks of going with limited cover.
Got a good deal?
I'd invite all MoneySavers to record any top deals for older travellers/pre-existing conditions. Add yours/read others
Single trip and backpackers' insurance
For obvious reasons, it's impossible to list the best buys for every single trip option. Therefore the easiest solution is to use websites MoneySupermarket*, Confused.com* or Squaremouth*, which offer an automated travel insurance price comparison service. Use all three if you can.
From : http://www.moneysavingexpert.com
วันพฤหัสบดี, ตุลาคม 4, 2007
Cheap Home Insurance
Cheap Home Insurance
Slash the cost of buildings and contents cover
Step 1: Ensure you're getting the correct cover
Insurance premiums (the traditional name for the payments made to an insurance company) depend on the insurer, the level of cover and how risky you're perceived to be. Therefore start by defining what cover you want to ensure you're as low risk as possible.
What's the difference between building and contents cover?
They're two different insurance products, although many companies sell them combined. Yet as a rough rule of thumb, imagine you could turn your house upside down; everything that falls is covered by contents, whatever stays firm by buildings.
It's always important to ensure the ‘sum insured' is correct; this is the amount that you're covered for. Underinsuring can leave your claims unpaid, overinsure and you'll pay too much. Full details on how to assess the amount of cover you need in each case are in the Contents and Buildings section of the additional info article.
Is it worth combining buildings and content policies?
Combining policies doesn't always make it cheaper. If you've time, get quotes for standalone policies as well, especially if you're a high risk for one type of cover, e.g. burglary for contents, flooding for buildings. If the price variance isn't great, then plump for a combined policy as if a claim falls between the two stools, there's no ‘jurisdiction' argument and less admin.
Lower your risk
The lower the risk category you're in, the less you'll pay. This includes things like fitting window locks and joining neighbourhood watch. For full details see the Extra Tips To Cut Your Risk section of the additional info article.
Step 2: Shop around automatically
Manually shop around and you'll either visibly age, or hardly cover the market as there are hundreds of providers, yet there's a short-cut.
Use screenscraping websites
Here you enter your details and their software automatically fills in the required info at a host of other insurers and, importantly, brokers websites, grabbing you a quote. Literally ‘scraping the data off the screens'. It's a very quick and easy way to quickly cover a huge chunk of the marketplace in minutes. These sites earn money as they're paid a ‘lead fee' when you click through to an insurers/brokers website.
Moneysupermarket. Pros: Speed and range. Cons: Not as accurate. Details: Moneysupermarket is quick and covers the largest number of insurers and brokers. Yet as, for speed, you don't have to fill in as many details, it makes some assumptions which mean if you've slightly off-norm circumstances the quotes can be a little bit less accurate. Link: Moneysupermarket*
Confused.com. Pros: Thoroughness and detail. Cons: Takes longer. Details: This is a more accurate service, but requires you to fill in many more details, so do ensure you've all your documents close by. Link: Confused.com*
Compare the market. Pros: Includes some the others miss. Cons: Not a screenscraper. Details: Compare the market isn't a screenscraper, more of web broker, but it does include a number of insurers the others miss. It's therefore a great way to fill in the gaps. Link: Compare the market*
Is it worth using all three?
To ensure the very cheapest price, yes, definitely. Of course it takes longer, but if you've got all the paperwork together it's not too bad. Between all three there are 20 brokers and 26 insurers covered. By using just Confused you get 46% of these, add in Moneysupermarket and it's 78%. Add Compare the market too and you have them all.
While this isn't every insurer, it's certainly a good proportion. For total belt and braces, you could also check the two big insurers these miss, Direct Line* and Admiral.
Do remember, screenscrapers enter your details at insurers to get a quote, so there's a slight chance you may get sales calls later.
What's the difference between screenscrapers & brokers?
My favourite analogy for this is ‘buying bread'. Direct insurers are like bakers, thus your choice is simply to buy its cheapest loaf. Using a broker is like going to a supermarket; they stock a range of baker's loaves whose price depends on their relationship with the supplier. Screenscapers are like sending someone to speed round all the supermarkets and bakers to find the cheapest loaf of all of them.
This importantly means as screenscrapers include brokers, which in turn cover a range or insurers, they're actually covering a much wider range of the market than it may at first appear.
Step 3: Double check and get the discounts
Take the top three results and click through to the providers' website to double check the quotes and possibly play around with some of the policy details, e.g. the excess (the amount you pay towards each claim) to see the impact on the price.
Beware monthly repayment plans
If you're offered to ‘pay monthly' be careful. Technically insurers usually loan you the annual cost, and charge interest for the privilege. While occasional promotions are interest free, usually the rates are hideous. If that's the case and you can afford it in one go, you'd be better paying with a low interest credit card (see Best Purchases Card Rate) and making the same repayments to that instead.
Extra tricks to finese the price
There are always some home insurance companies offering special deals, and sometimes the way they're set up means they're missed in the screenscraper results. The best current offers are below, but always use the screenscrapers first, and compare their best price with the end result from below:
Nationwide, up to £100 if it can't beat what you paid last year. Take a policy with Nationwide* before 2 Nov 07 and if it can't beat what you paid last year for the same cover, it'll refund you the difference, up to £100. Offer applies if you haven't made a claim in the last 12 months.
Churchill, £75 if it can’t beat renewal quote. If you take out a policy in September or October, Churchill* is offering new customers £75 cash back if it can't beat your combined buildings and contents renewal quote on an equivalent basis.
Norwich Union, £60 if it can’t beat renewal quote. Norwich Union* offers new customers £60 cash back if it can't beat your combined buildings and contents renewal quote on an equivalent basis.
Barclays, £50 if it can’t beat renewal quote & second year cost reduction. Barclays* promises if you haven't claimed in three years and it can't beat your renewal quote it'll match it and give you £50 on top (though it'll only reduce quotes by a max. £100). Plus if you don't claim, then on your first renewal it promises to reduce your premium.
Hidden cashback may be available too As well as these official cashback schemes, a few insurers pay out cashback if you sign up to them via the specialist cashback shopping sites. This means you can sometimes sneak even more cash off. For more details on these sites read the Top Cashback Sites article.
Step 4: Haggle and remember next year
There's no such thing as a fixed price when it comes to insurance. The final step is to get on the phone and try to haggle. There's often massive price flexibility, but be fully armed with the cheapest standard quote first.
Always try taking it to your existing insurer and a broker to see if they will beat it, and perhaps try shaving a few extra pounds off by mentioning your best quote.
Remember next year
Insurers cleverly only send renewal notifications as near to the actual date as possible, meaning many just let the Direct Debit restart due to time pressures. To beat this diarise the end date, or use the Tart Alert which will send you a free text or email six weeks before your insurance date is due (its designed for 0% credit card end dates, but works just as well for insurance).
For More Detail Click : http://www.moneysavingexpert.com
From : http://www.moneysavingexpert.com
Slash the cost of buildings and contents cover
Step 1: Ensure you're getting the correct cover
Insurance premiums (the traditional name for the payments made to an insurance company) depend on the insurer, the level of cover and how risky you're perceived to be. Therefore start by defining what cover you want to ensure you're as low risk as possible.
What's the difference between building and contents cover?
They're two different insurance products, although many companies sell them combined. Yet as a rough rule of thumb, imagine you could turn your house upside down; everything that falls is covered by contents, whatever stays firm by buildings.
It's always important to ensure the ‘sum insured' is correct; this is the amount that you're covered for. Underinsuring can leave your claims unpaid, overinsure and you'll pay too much. Full details on how to assess the amount of cover you need in each case are in the Contents and Buildings section of the additional info article.
Is it worth combining buildings and content policies?
Combining policies doesn't always make it cheaper. If you've time, get quotes for standalone policies as well, especially if you're a high risk for one type of cover, e.g. burglary for contents, flooding for buildings. If the price variance isn't great, then plump for a combined policy as if a claim falls between the two stools, there's no ‘jurisdiction' argument and less admin.
Lower your risk
The lower the risk category you're in, the less you'll pay. This includes things like fitting window locks and joining neighbourhood watch. For full details see the Extra Tips To Cut Your Risk section of the additional info article.
Step 2: Shop around automatically
Manually shop around and you'll either visibly age, or hardly cover the market as there are hundreds of providers, yet there's a short-cut.
Use screenscraping websites
Here you enter your details and their software automatically fills in the required info at a host of other insurers and, importantly, brokers websites, grabbing you a quote. Literally ‘scraping the data off the screens'. It's a very quick and easy way to quickly cover a huge chunk of the marketplace in minutes. These sites earn money as they're paid a ‘lead fee' when you click through to an insurers/brokers website.
Moneysupermarket. Pros: Speed and range. Cons: Not as accurate. Details: Moneysupermarket is quick and covers the largest number of insurers and brokers. Yet as, for speed, you don't have to fill in as many details, it makes some assumptions which mean if you've slightly off-norm circumstances the quotes can be a little bit less accurate. Link: Moneysupermarket*
Confused.com. Pros: Thoroughness and detail. Cons: Takes longer. Details: This is a more accurate service, but requires you to fill in many more details, so do ensure you've all your documents close by. Link: Confused.com*
Compare the market. Pros: Includes some the others miss. Cons: Not a screenscraper. Details: Compare the market isn't a screenscraper, more of web broker, but it does include a number of insurers the others miss. It's therefore a great way to fill in the gaps. Link: Compare the market*
Is it worth using all three?
To ensure the very cheapest price, yes, definitely. Of course it takes longer, but if you've got all the paperwork together it's not too bad. Between all three there are 20 brokers and 26 insurers covered. By using just Confused you get 46% of these, add in Moneysupermarket and it's 78%. Add Compare the market too and you have them all.
While this isn't every insurer, it's certainly a good proportion. For total belt and braces, you could also check the two big insurers these miss, Direct Line* and Admiral.
Do remember, screenscrapers enter your details at insurers to get a quote, so there's a slight chance you may get sales calls later.
What's the difference between screenscrapers & brokers?
My favourite analogy for this is ‘buying bread'. Direct insurers are like bakers, thus your choice is simply to buy its cheapest loaf. Using a broker is like going to a supermarket; they stock a range of baker's loaves whose price depends on their relationship with the supplier. Screenscapers are like sending someone to speed round all the supermarkets and bakers to find the cheapest loaf of all of them.
This importantly means as screenscrapers include brokers, which in turn cover a range or insurers, they're actually covering a much wider range of the market than it may at first appear.
Step 3: Double check and get the discounts
Take the top three results and click through to the providers' website to double check the quotes and possibly play around with some of the policy details, e.g. the excess (the amount you pay towards each claim) to see the impact on the price.
Beware monthly repayment plans
If you're offered to ‘pay monthly' be careful. Technically insurers usually loan you the annual cost, and charge interest for the privilege. While occasional promotions are interest free, usually the rates are hideous. If that's the case and you can afford it in one go, you'd be better paying with a low interest credit card (see Best Purchases Card Rate) and making the same repayments to that instead.
Extra tricks to finese the price
There are always some home insurance companies offering special deals, and sometimes the way they're set up means they're missed in the screenscraper results. The best current offers are below, but always use the screenscrapers first, and compare their best price with the end result from below:
Nationwide, up to £100 if it can't beat what you paid last year. Take a policy with Nationwide* before 2 Nov 07 and if it can't beat what you paid last year for the same cover, it'll refund you the difference, up to £100. Offer applies if you haven't made a claim in the last 12 months.
Churchill, £75 if it can’t beat renewal quote. If you take out a policy in September or October, Churchill* is offering new customers £75 cash back if it can't beat your combined buildings and contents renewal quote on an equivalent basis.
Norwich Union, £60 if it can’t beat renewal quote. Norwich Union* offers new customers £60 cash back if it can't beat your combined buildings and contents renewal quote on an equivalent basis.
Barclays, £50 if it can’t beat renewal quote & second year cost reduction. Barclays* promises if you haven't claimed in three years and it can't beat your renewal quote it'll match it and give you £50 on top (though it'll only reduce quotes by a max. £100). Plus if you don't claim, then on your first renewal it promises to reduce your premium.
Hidden cashback may be available too As well as these official cashback schemes, a few insurers pay out cashback if you sign up to them via the specialist cashback shopping sites. This means you can sometimes sneak even more cash off. For more details on these sites read the Top Cashback Sites article.
Step 4: Haggle and remember next year
There's no such thing as a fixed price when it comes to insurance. The final step is to get on the phone and try to haggle. There's often massive price flexibility, but be fully armed with the cheapest standard quote first.
Always try taking it to your existing insurer and a broker to see if they will beat it, and perhaps try shaving a few extra pounds off by mentioning your best quote.
Remember next year
Insurers cleverly only send renewal notifications as near to the actual date as possible, meaning many just let the Direct Debit restart due to time pressures. To beat this diarise the end date, or use the Tart Alert which will send you a free text or email six weeks before your insurance date is due (its designed for 0% credit card end dates, but works just as well for insurance).
For More Detail Click : http://www.moneysavingexpert.com
From : http://www.moneysavingexpert.com
วันพุธ, ตุลาคม 3, 2007
Cheap Car Insurance
Cheap Car Insurance
A speedy, powerful cost cutting system
Step 1: Ensure you're getting the correct cover
Insurance premiums (the traditional name for the payments made to an insurance company) depend on the insurer, the level of cover and how risky you're perceived to be. Therefore start by defining what cover you want to ensure you're as low risk as possible.
Fully Comprehensive or Third Party
You can chose between two main types of insurance for cars, depending on things such as the cost of repair versus the increased insurance premiums. More details on how to assess the amount of cover you need in each case are in the Type Of Insurance section of the additional info article.
Lower your risk
The lower the risk category you're in, the less you'll pay. This includes things like your driving history, who else drives the car, whether it's used for commuting and the make and model.
There are some simple ways to keep the cost down: fit an alarm or an immobiliser; don't over-assume annual mileage; keep your car off the street and in a drive or garage overnight. Do you need a courtesy car and how much do you want to pay towards a claim? The higher the 'excess', the less you'll pay. For more detailed ways to save even more see the Reduce Your Risk section of the additional info article.
Step 2: Shop around automatically
Manually shop around and you'll either visibly age, or hardly cover the market as there are hundreds of providers, yet there's a short-cut.
Use screenscraping websites
Here you enter your details and their software automatically fills in the required info at a host of other insurers and, importantly, brokers' websites, grabbing you a quote - literally 'scraping the data off the screens'. It's a very quick and easy way to cover a huge chunk of the marketplace in minutes. These sites earn money as they're paid a 'lead fee' when you click through to an insurers/brokers' website. Sadly these don't work if you're in Northern Ireland - see NI Car Insurance Discussion.
Moneysupermarket. Pros: Speed and range. Cons: Not as accurate. Details: Moneysupermarket is quick and covers the largest number of insurers and brokers. Yet to make it fast you don't fill in as many details, meaning it has to make some assumptions. This can mean if you've slightly off-norm circumstances the quotes can be a little bit less accurate. Link: Moneysupermarket*
Confused. Pros: Thoroughness and detail. Cons: Takes longer. Details: This is a more accurate service, but requires you to fill in many more details, so do ensure you've all your documents close by. Link: Confused.com*
Compare the market. Pros: Includes some the others miss. Cons: Not a screenscraper. Details: Compare the market isn't a screenscraper, more of a web broker, but it does include a number of insurers the others miss. It's therefore a great way to fill in the gaps. Link: Compare the market*
Tesco Compare. Pros: Includes some big name insurers missed by the scrapers above, so it’s a good fourth choice. Cons: Doesn’t include sister company Direct Line* which recently launched a publicity campaign against comparison sites arguing they're biased, and although this should be ignored it does also have some cheap premiums so should be checked separately. Link: Tesco Compare
Is it worth using all four?
To ensure the very cheapest price, yes, definitely. Of course it takes longer, but if you've got all the paperwork together it's not too bad. Between all four there are 28 brokers and 64 insurers covered. By using just MoneySupermarket you get 46% of these, add in Confused and it’s 65%, Compare the Market is 85% and with Tesco Compare you have them all.
If after checking all four you're still struggling to find a better price see the further finesses section below.
Do remember, screenscrapers enter your details at insurers to get a quote, so there's a slight chance you may get sales calls later.
What's the difference between screenscrapers & brokers?
My favourite analogy for this is 'buying bread'. Direct insurers are like bakers, thus your choice is simply to buy its cheapest loaf. Using a broker is like going to a supermarket; they stock a range of bakers' loaves whose price depends on their relationship with the supplier. Screenscrapers are like sending someone to speed round all the supermarkets and bakers to find the cheapest loaf of all of them.
This importantly means as screenscrapers include brokers, which in turn cover a range of insurers, they're actually covering a much wider range of the market than they may at first appear.
If You Want To See More Go To : http://www.moneysavingexpert.com
From : http://www.moneysavingexpert.com
A speedy, powerful cost cutting system
Step 1: Ensure you're getting the correct cover
Insurance premiums (the traditional name for the payments made to an insurance company) depend on the insurer, the level of cover and how risky you're perceived to be. Therefore start by defining what cover you want to ensure you're as low risk as possible.
Fully Comprehensive or Third Party
You can chose between two main types of insurance for cars, depending on things such as the cost of repair versus the increased insurance premiums. More details on how to assess the amount of cover you need in each case are in the Type Of Insurance section of the additional info article.
Lower your risk
The lower the risk category you're in, the less you'll pay. This includes things like your driving history, who else drives the car, whether it's used for commuting and the make and model.
There are some simple ways to keep the cost down: fit an alarm or an immobiliser; don't over-assume annual mileage; keep your car off the street and in a drive or garage overnight. Do you need a courtesy car and how much do you want to pay towards a claim? The higher the 'excess', the less you'll pay. For more detailed ways to save even more see the Reduce Your Risk section of the additional info article.
Step 2: Shop around automatically
Manually shop around and you'll either visibly age, or hardly cover the market as there are hundreds of providers, yet there's a short-cut.
Use screenscraping websites
Here you enter your details and their software automatically fills in the required info at a host of other insurers and, importantly, brokers' websites, grabbing you a quote - literally 'scraping the data off the screens'. It's a very quick and easy way to cover a huge chunk of the marketplace in minutes. These sites earn money as they're paid a 'lead fee' when you click through to an insurers/brokers' website. Sadly these don't work if you're in Northern Ireland - see NI Car Insurance Discussion.
Moneysupermarket. Pros: Speed and range. Cons: Not as accurate. Details: Moneysupermarket is quick and covers the largest number of insurers and brokers. Yet to make it fast you don't fill in as many details, meaning it has to make some assumptions. This can mean if you've slightly off-norm circumstances the quotes can be a little bit less accurate. Link: Moneysupermarket*
Confused. Pros: Thoroughness and detail. Cons: Takes longer. Details: This is a more accurate service, but requires you to fill in many more details, so do ensure you've all your documents close by. Link: Confused.com*
Compare the market. Pros: Includes some the others miss. Cons: Not a screenscraper. Details: Compare the market isn't a screenscraper, more of a web broker, but it does include a number of insurers the others miss. It's therefore a great way to fill in the gaps. Link: Compare the market*
Tesco Compare. Pros: Includes some big name insurers missed by the scrapers above, so it’s a good fourth choice. Cons: Doesn’t include sister company Direct Line* which recently launched a publicity campaign against comparison sites arguing they're biased, and although this should be ignored it does also have some cheap premiums so should be checked separately. Link: Tesco Compare
Is it worth using all four?
To ensure the very cheapest price, yes, definitely. Of course it takes longer, but if you've got all the paperwork together it's not too bad. Between all four there are 28 brokers and 64 insurers covered. By using just MoneySupermarket you get 46% of these, add in Confused and it’s 65%, Compare the Market is 85% and with Tesco Compare you have them all.
If after checking all four you're still struggling to find a better price see the further finesses section below.
Do remember, screenscrapers enter your details at insurers to get a quote, so there's a slight chance you may get sales calls later.
What's the difference between screenscrapers & brokers?
My favourite analogy for this is 'buying bread'. Direct insurers are like bakers, thus your choice is simply to buy its cheapest loaf. Using a broker is like going to a supermarket; they stock a range of bakers' loaves whose price depends on their relationship with the supplier. Screenscrapers are like sending someone to speed round all the supermarkets and bakers to find the cheapest loaf of all of them.
This importantly means as screenscrapers include brokers, which in turn cover a range of insurers, they're actually covering a much wider range of the market than they may at first appear.
If You Want To See More Go To : http://www.moneysavingexpert.com
From : http://www.moneysavingexpert.com
Cheap Loans : How to get your lowest possible rate
Loans rates are at near historic lows, and as the rate stays fixed over the loan's life, it's a fantastic time to get one, provided you need to borrow that is.
Debt isn't bad. Bad debt is bad. Governments borrow, companies borrow, so why shouldn't individuals, provided it's planned, budgeted and cheap. The problem is there are more tricks than a post-espresso Paul Daniels, so my aim's to make the mystique vanish to find your cheapest.
Is a loan the cheapest option?
Personal loans are designed for fixed term borrowing of under £25,000, but for some tasks the right credit card is cheaper:
Cutting the cost of existing credit card debts. Special credit card balance transfer offers allow you to shift other cards' debts to them at much cheaper rates. Permanent long term borrowing this way is currently available at 4.9%, cheaper than the cheapest loan (see Best Balance Transfers).
Short term borrowing. Many credit cards allow new customers to spend on them at 0% for up to the first year. Providing you can make your purchase on a card, within that time, it's the best option (see Short Term Interest Free Loans).
For other uses, there's a complex technique to effectively get a cheaper and more flexible loan via credit cards, however only the financially savvy should try it. See Cut Price Plastic Loans.
Secured vs Personal loans
Most high street loans are ‘unsecured' and, while this sounds iffy, it's actually much better than ‘secured', as that's ‘security' for the lender who can take your home if you can't repay.
Secured loans are rarely a good move, and should be considered lending of last resort. They're only applicable in very limited circumstances (see Secured Loan article). Those with reasonable credit scores should consider a personal loan or extending their mortgage instead.
Those with a poor credit history looking at secured loans as a way out should read my Step-By-Step Guide To Problem Debts as an alternative.
For the remainder of this article I'm focusing on unsecured lending.
Choosing the right type of loan
How much and how long to borrow?
Borrow as little as possible, repaying as quickly as possible. To avoid complications, always base borrowing on what you can comfortably afford to repay (preferably after Doing A Budget), as over-borrowing can lead debts to spiral out of control.
However, while borrowing over a longer period spreads the debts and decreases monthly repayments, it massively increases the interest you'll repay. Borrow £10,000 at 7% over three years and the interest cost is £1,100; borrow the same over 10 years and it's £3,800.
Watch for quick delivery fees
Some loans add a charge e.g. £45 for delivering the money quickly often as a default setting, so always check when you're setting up this loan, and if you don't need the money urgently opt for slow delivery to save.
Be especially careful with car loans
Car dealerships often quote a ‘flat interest rate' rather than the Annual Percentage Rate (APR) that banks use. This makes expensive loans look cheap. Double the flat rate to get a rough APR e.g. a 6% flat rate is 12% APR. Always compare loans based on the total amount you'll repay (see Don't Be A Flat Rate Fool and Everything You'd Want To Know About Interest Rates).
If you have a loan and want a cheaper one
Don't automatically assume that switching to a cheaper interest rate will save you money. Many loans, especially older ones, have lock in penalties which mean even though you'll pay less interest, when you add in the fine for moving overall you pay more. Full details of how to work out whether it will be cheaper are in the Cut The Cost Of Existing Loans article.
From : http://www.moneysavingexpert.com
Debt isn't bad. Bad debt is bad. Governments borrow, companies borrow, so why shouldn't individuals, provided it's planned, budgeted and cheap. The problem is there are more tricks than a post-espresso Paul Daniels, so my aim's to make the mystique vanish to find your cheapest.
Is a loan the cheapest option?
Personal loans are designed for fixed term borrowing of under £25,000, but for some tasks the right credit card is cheaper:
Cutting the cost of existing credit card debts. Special credit card balance transfer offers allow you to shift other cards' debts to them at much cheaper rates. Permanent long term borrowing this way is currently available at 4.9%, cheaper than the cheapest loan (see Best Balance Transfers).
Short term borrowing. Many credit cards allow new customers to spend on them at 0% for up to the first year. Providing you can make your purchase on a card, within that time, it's the best option (see Short Term Interest Free Loans).
For other uses, there's a complex technique to effectively get a cheaper and more flexible loan via credit cards, however only the financially savvy should try it. See Cut Price Plastic Loans.
Secured vs Personal loans
Most high street loans are ‘unsecured' and, while this sounds iffy, it's actually much better than ‘secured', as that's ‘security' for the lender who can take your home if you can't repay.
Secured loans are rarely a good move, and should be considered lending of last resort. They're only applicable in very limited circumstances (see Secured Loan article). Those with reasonable credit scores should consider a personal loan or extending their mortgage instead.
Those with a poor credit history looking at secured loans as a way out should read my Step-By-Step Guide To Problem Debts as an alternative.
For the remainder of this article I'm focusing on unsecured lending.
Choosing the right type of loan
How much and how long to borrow?
Borrow as little as possible, repaying as quickly as possible. To avoid complications, always base borrowing on what you can comfortably afford to repay (preferably after Doing A Budget), as over-borrowing can lead debts to spiral out of control.
However, while borrowing over a longer period spreads the debts and decreases monthly repayments, it massively increases the interest you'll repay. Borrow £10,000 at 7% over three years and the interest cost is £1,100; borrow the same over 10 years and it's £3,800.
Watch for quick delivery fees
Some loans add a charge e.g. £45 for delivering the money quickly often as a default setting, so always check when you're setting up this loan, and if you don't need the money urgently opt for slow delivery to save.
Be especially careful with car loans
Car dealerships often quote a ‘flat interest rate' rather than the Annual Percentage Rate (APR) that banks use. This makes expensive loans look cheap. Double the flat rate to get a rough APR e.g. a 6% flat rate is 12% APR. Always compare loans based on the total amount you'll repay (see Don't Be A Flat Rate Fool and Everything You'd Want To Know About Interest Rates).
If you have a loan and want a cheaper one
Don't automatically assume that switching to a cheaper interest rate will save you money. Many loans, especially older ones, have lock in penalties which mean even though you'll pay less interest, when you add in the fine for moving overall you pay more. Full details of how to work out whether it will be cheaper are in the Cut The Cost Of Existing Loans article.
From : http://www.moneysavingexpert.com
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