What is a credit reference agency?

Credit reference agencies are companies who compile relevant information taken from financial institutions, credit providers and public records such as the electoral roll and county court judgements.

They use this information to produce credit reports which they subsequently sell to lenders and credit providers. The three main credit reference agencies in the UK are Experian, Equifax and Call Credit.

Who uses credit ratings?

Lenders use credit ratings to help decide whether to offer credit. They may also use the credit rating to help determine the rates and conditions of any credit offered. Lenders are under no obligation to offer credit and will use credit ratings to help determine the potential risk and profitability of an applicant.

Lenders will also take other sources of information into account before making a decision on credit. This includes the information on a credit application form, which will typically include personal details such as income, home address and family circumstances. Applications for a personal loan may also ask for the purpose of a particular loan.

Lenders may also take past dealings with the company into account. There are, however, data protection rules that may limit what information different parts of a company can share.

What information is on a credit report?

Credit reports contain details of your credit history. These include the date that any past or current credit accounts were opened, the credit limit or loan amount and details of any missed payments. Account details usually stay on your report for six years after an account is closed or a loan settled. If you clear a credit card balance but forget or otherwise fail to close the account, the details will remain on your report.

Agencies record credit searches every time a company or other organisation looks at your credit report. This means that every time you apply for credit, that application is recorded. Whether the application was successful is not recorded, although lenders may be able to work that out based on the credit accounts you currently hold.

Public records such as county court judgements, house repossessions and bankruptcies are also collected. These are usually kept for six years – in the case of a discharged bankruptcy, this should be wiped six years after the date you were declared bankrupt, not six years after you were discharged.

What information is not on a credit report?

Credit reports do not contain details of criminal convictions, medical history or personal information such as race and religion. Details of family members should not be included unless you have joint credit accounts.

Salary and earnings are not recorded. The name of your current account provider may be recorded but details of the account are not, unless there is relevant information such as use of an unauthorised overdraft. Savings accounts do not appear on credit reports as they are not a credit product.

There is no such thing as a 'credit blacklist', although having a poor credit rating can certainly affect your chances of getting credit and affect any terms that you might be offered.

What factors can damage my credit rating?

A number of factors can have a negative effect on your overall credit rating. These can include...

• Bad credit history

Missed or late payments can badly affect your credit rating. Defaults and County Court Judgements relating to debts can also have a major negative effect.

• Frequently changing address

Moving a lot can affect your credit rating. In general, credit reference agencies look at addresses lived in over the past three years. If there have been frequent changes or if you have lived at your current address for less than six months, it may have a negative effect. Moving house once, especially if you are a home-owner, is unlikely to have a major impact.

• Multiple credit applications

Making a lot of applications for credit in a short space of time can raise a red flag. Lenders may suspect that you have been turned down elsewhere or are desperate to obtain credit.

• Not being on the electoral register

The electoral register is one of the places all the credit reference agencies check. Even if you do not intend to vote, the fact that you are not registered can have an adverse effect.

How do I see my credit report?

The three major credit reference agencies offer various credit report services to individuals, but you have a right to see the 'statutory credit files' held on you by these agencies. These can be viewed online or paper copies can be ordered. There is a fee of £2 for each credit file.

If you think there are factual inaccuracies in the data, you can ask for the information to be removed or changed by contacting the agency directly. You can also add your own comments in the form of a 'notice of correction'.

There are a number of simple hints and tips which you can follow to ensure that you can get the most from your card:

• It is not a good idea to apply for too many cards. Constant switching/rejections can have negative impact on your overall credit rating.
• Always try to make more than simply the minimum repayment when possible. Simply making minimum payments will only mean that it will cost ultimately cost you more and take longer to pay off overall. 
• It is a good idea to avoid using your credit to avoid cash if at all possible. Rates will often by very high and interest is likely to start accruing instantly.

Choosing a credit card

There are many different factors that may affect your decision when choosing a card. The interest rate and any annual charges applicable can be important, but the length of any interest free period for purchases may be even more important if you are planning on paying your balance in full each month.

Balance transfer rates, credit limits and incentive schemes may also provide reasons to choose one credit card over another. Every card has its own pros and cons and choosing the right one for you depends on your own personal circumstances.

Paying your bill

Your monthly bill will have a payment due date. If you pay the full balance by this date you will not usually be charged anything for using your credit card. Do not forget to allow time for your funds to clear depending on your method of payment. You will also have an option to pay a minimum amount. This will be a proportion of the total amount you owe and may vary from card to card.

If you do not pay the full amount you will be charged interest on whatever remains and if you do not pay the minimum amount, you may incur extra charges. Paying only the minimum amount each month can lead to you paying more in the long run.

You can pay your bill when it is issued or you may choose to set up an alternative method of payment such as a Direct Debit. You can set up your Direct Debit to pay the minimum amount, the full balance or a set amount each month. You can also make additional payments over the phone or online. When setting up a direct debit you should check when your bill or statement will be due each month. It usually makes sense to have your Direct Debit activate on this date, or at least between the statement and the payment due date.

Balance transfers

Card issuers will often offer attractive interest rates on balance transfers, particularly for new customers. This rate may even be 0% for a set period of time and it applies to balances transferred from an existing credit card to your new credit card.

A balance transfer may save you money in the long run, especially if you are planning to pay off a balance over a period of several months or longer. There is typically a fee for arranging a balance transfer though. This is usually a proportion of the amount transferred and this is added to your new balance. Transferring £1,000 with a 3% fee, for example, would cost you £30 and your new balance would be £1,030.

Credit card incentives

Many card issuers offer incentives for using their products. These can vary greatly between companies and individual cards. These may include:

• Cashback – Some cards offer a cashback scheme in which you receive a percentage cash bonus for every pound you spend. If the card offered a 1% cashback, for example, you would receive £1 for every £100 you spend. Cashback offers often do not apply to balance transfers and cash advances.
• Charity donations – For every pound you spend, some issuers will make a donation to a named charity.
• Vouchers and reward schemes – For every pound you spend, you may earn points that can be redeemed for various rewards.
• Insurance and extra coverage – As mentioned above, all credit cards offer certain consumer protection benefits. Some issuers may offer additional protection such as travel insurance or purchase protection insurance that can cover purchases made with the card against theft, loss and accidental damage for a specified period.

The value of any incentive scheme will vary depending on your personal circumstances. They can certainly provide a nice bonus but you should carefully weigh their benefits against other factors such as interest rates and charges before making a decision.

Annual fee

Some companies charge an annual fee for holding a credit card account. This fee will apply no matter how much or how little you use the card. Not all companies charge an annual fee and those who do so may not charge an annual fee on each individual credit card.

APR

APR stands for Annual Percentage Rate and represents the charge you will have to pay for credit taken over the course of a year. It is expressed as a percentage of the total amount borrowed. It takes into account not only the basic interest rate but any monthly or annual charges. In the UK, APR is used throughout the financial industry, allowing you to compare a range of different financial products and services.

Balance transfer

A balance transfer is when you transfer the money owed on a credit card, store card or loan to another credit card. Many issuers offer attractive balance transfer rates, especially to new customers. These will usually last for a set period of time, just like an introductory offer (see below). There is often a handling fee applied to a balance transfer. This is expressed as a percentage of the total amount transferred. If, for example, you transferred a balance of £1,000 with a 3.5% handling fee, your new balance would be £1,035.

Cash advance

Many credit cards allow you to obtain cash. This can often be done at a cash machine using your PIN, just as you would with your debit card. The APR on a cash advance may be higher than that charged when you make purchases with your card. Additionally, interest free periods may not apply to funds obtained through a cash advance. Interest will usually be charged from the date at which you withdrew the cash.

Cashback

Some cards offer a cashback scheme as an incentive. For every pound you spend, you will receive a proportion of that money back. If, for example, you spent £100 on a card with a 1% cashback, you would receive £1 back.

Contactless technology

Some credit cards now support contactless technology. This allows you to make small purchases (typically £15 or less) by simply holding your card near a contactless reader. The card has to be held for a short time in close proximity to the reader, so you won't trigger a reading simply by walking past.

Credit card

A credit card is a card that allows you to access credit to purchase goods/services or to withdraw cash. A credit card differs from a debit card, which draws from existing funds in your bank account or a prepaid card, which must be 'loaded' with funds before you use it. Whenever you use a credit card you are in essence borrowing money from the card issuer and this money has to be paid back.

Credit limit

Your credit limit is the maximum amount you can borrow on your card at any one time, whether through purchases, cash advances or balance transfers. If you attempt to go over your credit limit, your card may be declined and you may also have to pay charges. Your credit limit will be set when you apply for your card, depending on your personal circumstances and the type of card you're applying for. The credit limit may be revised at a later date.

Foreign Exchange fees

When using a credit card to pay for goods or services abroad, you are likely to incur an administration charge as a result. Unfortunately, this is an unavoidable consequence of using your card while overseas but it is worth noting that these charges will vary from one credit card company to another.

Interest free period

Most credit cards allow an interest free period on purchases. This is a set period of time following the date on which you receive your monthly statement. As long as you pay your balance in full before the end of this period, you will not be charged interest on your purchases. Essentially, this allows you to use your credit card for free if you pay the full balance each month and there are no annual fees. The interest free period does not usually apply to cash advances, balance transfers (which may have their own special rates) or cheques drawn against your credit card account.

Introductory rate

Many credit card companies offer an introductory rate to new customers. This may be as low as 0% and will apply for a set period of time. After this period ends, your outstanding balance will revert to the issuer's normal rates.

Minimum payment

The minimum payment is the lowest amount you must pay off your credit card balance that month. It is usually a percentage of the total amount owed. You can pay more than the minimum payment but if you fail to pay the minimum payment, you may be charged extra fees. Repeatedly missing your minimum payment can damage your credit rating and may eventually result in legal action.

PIN

PIN stands for Personal Identification Number and is the four-figure digit you use to make payments with your card. It is more secure than providing a signature, which can be forged.

It's essential for the safety of both the rider and other road users that the bike is fitted with appropriate tyres that are properly checked and maintained.

Choosing the right tyres

There are three basic types of motorbike tyre. These are:

• Diagonal or cross ply
• Radial ply
• Bias belted

In addition, tyres may be tubeless or tube type (requiring an inner tube) depending on the wheel type. The type and size of tyre required will depend on the make and model of your motorbike and what you intend to use it for (touring, street riding, off-road, racing etc.). You can find the appropriate tyre for your situation by consulting your bike owner's manual, a motorcycle tyre specialist or the tyre manufacturer's guide.

The front and rear tyres should also be of the same type. In some European countries it is illegal to ride a bike with tyres from two different manufacturers. This is not currently a legal requirement in the UK but using the same brand and type of tyre for both wheels is still advisable.

Inspection and maintenance

It's a good idea to inspect tyres regularly, even if the bike appears to be handling normally. Visual signs of a tyre's deterioration can include cracking of the tread or sidewall rubber, cuts, lumps or bulges. The depth of the tyre tread should also be regularly checked.

Driving over potholes, kerbs and debris can all result in damage to the structure of the tyre and riders who experience an impact may be advised to get their tyres checked out even if there are no visible signs of deterioration. Air loss, unusual noises and vibrations can also indicate problems with the tyres.

Tyre treads

Tyre treads help maintain a grip on the road and disperse water from the area where the tyre is in contact with the tarmac in adverse weather conditions. In the UK it's a legal requirement for the tread to be at least 1mm in depth around the whole circumference of the tyre and across 75% of the central width. The original pattern must also be visible across the remaining 25%.

Most motorcycle tyres have tread-wear indicators located in the grooves. These give an indication of when the tyre is approaching the end of its safe and legal life. The tyre should be replaced when these tread wear indicators reach the level of the tread surface.

Tyre pressure

The correct inflation of tyres is vital to road safety and performance. It's recommended that tyre pressures are checked regularly (preferably once a week) and before any long journey. Tyre pressures should be checked when the tyres are cold, as heated tyres can give a false reading. This means taking a reading before the bike is ridden. Spare tyres should also be checked at regular intervals.

Under-inflated tyres can result in poor handling and reduced grip with the road surface. They can also be prone to overheating and causing excessive flexing and deterioration of the casing. Under-inflated tyres tend to wear out more quickly and can adversely affect the mileage you get from the bike, which can increase fuel costs. This can also increase your carbon emissions. 

A tyre will tend to lose air pressure over time (typically around 1 psi or 0.076 bars per month). Excessive air loss could be an indication of a slow puncture or a problem with the valve, valve cap or the wheel itself.

Tyres that have been run while flat or seriously under-inflated should not be re-inflated and reused. There may be damage to the structure of the tyre and they should always be removed and inspected by a trained tyre specialist.

Over-inflated tyres reduce the area of tyre in contact with the road, leading to reduced control and faster wear in the centre of the tread. Over inflated tyres can also be more susceptible to damage from impact with things like speed bumps, potholes and kerbs.

The recommended pressures for original equipment tyres can be found in your owner's manual. Tyre specialists or tyre manufacturers can provide the optimum pressures for 'aftermarket' alternative tyres. The recommended pressures may also vary depending on the load. This may include factors such as whether you are riding solo or have a pillion passenger, have a heavy pannier load or have a side-car attached.

New tyres

New tyres should be allowed a 'running in' period. This allows the tyre to settle properly on the wheel rim, 'scuffs' the tread surface and gives the rider a chance to adjust to small differences in handling. When new tyres are fitted, the bike should be ridden at low speeds for the first 100 miles or so. 

It’s best to avoid hard braking and cornering, while it’s a good idea to take extra care in bad weather or otherwise tricky conditions. After the first 100 miles, the tyres should be checked to ensure the correct seating and inflation.

Disclaimer – Please not that this guide is not designed to be advisory and you should contact the tyre manufacturer for full details of the products mentioned.

Do I need motorbike insurance?

Valid  insurance is a legal requirement to ride a motorbike on a road or any other  public space in the UK. Any rider must have at least third party insurance  cover.

What is third party insurance?

Third  party motorbike insurance only covers injury to people or damage to their  property resulting from an accident for which you were to blame. If you are  injured or your bike is damaged in an accident that was not your fault and you  only have third party insurance, you must pursue your claim through the other  party's insurer. Third party insurance does not cover your bike against theft  or vandalism.

What is third party, fire and theft insurance?

Third  party, fire and theft motorbike  insurance is basically an upgraded version of third party cover. It gives  all the same protection as third party only insurance but will also cover your  costs if your bike is stolen or set on fire.

What is comprehensive insurance?

Comprehensive  motorbike insurance offers all the benefits of third party, fire and theft  insurance but it will also cover you for damage or injury in an accident that  was your fault. Some policies may also offer additional benefits, such as  breakdown assistance and legal expenses cover. There may also be 'bolt ons'  such as insurance for your helmet and leathers. These will generally be  optional extras that will give you additional cover for an extra cost.

What is an excess?

For  most insurance claims you make, you will have to pay the first part of the  cost. This is known as the excess. The amount of excess payable will vary  between different insurance providers and individual policies. It is sometimes  possible to raise the amount of excess you pay (known as a voluntary excess) in  exchange for a lower overall premium.

Can I ride my bike abroad?

Some  policies will automatically cover you if you take your bike abroad but others  will not. If you have a comprehensive policy in the UK it may offer a reduced  level of cover abroad. A minimum level of insurance is compulsory in all  European countries and almost all countries worldwide. If your existing policy  does not cover you abroad, it may be possible to get temporary cover for the  duration of your trip.

Will motorbike insurance cover a pillion passenger?

Pillion  passengers used to be routinely covered by the rider's motorbike insurance.  Nowadays this is not always the case. Many insurers will give applicants the  option of whether to purchase cover for pillion passengers or not. Not doing so  will reduce the cost of the premium but it is illegal to carry an uninsured  passenger.

What factors will affect my premium?

There  are many factors that can affect the cost of your premium. These can include  your age, occupation and the specifications of your bike. Insurers assess the  risk of providing cover and young riders on fast powerful bikes are considered  to be relatively high risk.

The  value of the bike may also be important as it will obviously cost an insurer  more to replace an expensive bike that is written off in an accident than a  cheaper one. Expensive bikes can also be more attractive to thieves. The area  in which you live can also affect your premium, depending on whether it's  considered a high or low risk area when it comes to crime.

Classic  motorcycles may sometimes be cheaper to ensure than their modern counterparts.  Many ensurers recognise the fact that classic bikes can be difficult to sell on  and are therefore less attractive to thieves. Classic bike owners are also  statistically less likely to be involved in an accident and are often classed  as 'light' users who are more likely to be taking their bike to a convention or  for the occasional spin rather than using it every day on motorways or city  traffic.

Many  insurers will offer a discount to riders who complete the Driving Standards  Agency's enhanced rider scheme and earn a DSA certificate of competence. Most  will also offer a no claims discount to riders who have been riding for a given  time period without making a claim.

What is a no claims discount?

A  no claims discount, also known as a no claims bonus, is a discount applied to  your motorbike insurance premium based on your recent claims history. The exact  details of a no claims discount can vary between insurers and individual  policies but you will generally earn one year of no claims discount for every  year you have motorbike insurance without making a claim. There will usually be  a maximum number of years allowed for the discount.

No  claims discounts can sometimes be protected. Many policies include an optional  extra premium that protects your no claims discount even if you do make a  claim. Even if you have no claims discount protection, there is usually a limit  on how many claims you can make in a given time period and still keep your no claims  discount.

Tips for long journeys

If you are planning a long car journey then make sure you are prepared before you set out. Get a good night's sleep as being tired is likely to make you less alert generally.

Make sure you've had a drink and something to eat before you set out as thirst and hunger can be distracting. It may not be the best idea to drink beverages that are high in caffeine content as, although these will make you more alert initially, the effects will recede over time and you could end up feeling more tired in the long run.

Take a break at least once every two hours and make sure you have a drink and something to eat each time you do have a break. Try to get out of your car and walk around if you can as this will help you to feel more awake and energised.

Tips for driving in bad weather

If you have to drive in bad weather such as rain, snow or fog, then your risk of having an accident may increase. Make sure you take a look at the weather forecast before you set out so you know what's in store and check your tyres before you set out.

In heavy rain or snow make sure your windscreen wipers and headlights are on to improve visibility and try to drive in the tracks of the car in front if possible. Keep your driving at a slow and steady pace and avoid high speeds or making sudden moves. Take into account the fact that you will need more space to stop and increase your stopping distance accordingly.

Hydroplaning can occur in heavy rain. This is when your car tyres lose contact with the road due to the volume of water. If this happens when you are driving, take your foot off the accelerator and keep your steering wheel straight. As your car slows down, its weight will cause the wheels to regain contact with the road. Do not put on your brakes or try to steer if you hydroplane as this can cause your wheels to spin.

If you see a patch of fog ahead of you when driving, it is a good idea to slow down and put your fog lights on. Drive slowly and steadily through the fog and be aware that there may be slow-moving vehicles ahead of you.

Tips for driving in rush hour

Typically, drivers are most tired when driving in rush hour because it occurs at the start and the end of each day. When you have to drive through busy traffic it can seem like all you are doing is stopping and starting, which can get frustrating. In addition, the behaviour of other drivers can be extremely annoying.

The way you drive in rush hour can help to reduce your stress and reduce wear and tear on your car, so you are less likely to need to make a claim.

It can be hard to remember to look ahead when you are stuck in 'stop start' traffic, but anticipating what is happening further down the road can help you to keep your driving speed steady and give you more time to avoid any problems that come your way. Breaking gradually and using your gears minimally uses less fuel and creates less wear and tear on your vehicle, ultimately saving you money in the long term.

If you want to use the least possible fuel and avoid damaging your car then keeping your speed slow and steady is the best option. Avoid trying to speed ahead of traffic to nip into gaps. When driving in the rush hour there is always a possibility that someone in front of you could brake suddenly. If you keep your driving at a slow and steady speed and leave ample room for stopping between you and the car in front, you can be more in control of your vehicle and avoid accidents.

To save money on fuel and reduce wear and tear on your car, avoid driving in the rush hour. If that's not possible then plan your route carefully. Most people will choose to take the most direct route from A to B during rush hour, meaning that the direct route will be the busiest. Look for other ways to get to your destination that avoids motorways or busy main roads and you are likely to find that your journey time decreases and you ultimately use less fuel.

Using your gears

When you change gear it can have a large bearing on the amount of fuel you use. The best time to go up a gear is when your car can comfortably drive in the gear without you needing to put your foot on the accelerator.

Following these driving tips will help you reduce your fuel consumption, reduce the wear and tear on your vehicle and reduce the likelihood of you having an accident which could all help to lower your insurance premiums.

What is green car insurance?

There are several companies currently offering green car insurance which generally involves carbon offset schemes. Your vehicle and the amount that you drive will be assessed to find out how much carbon dioxide (CO2) your car is likely to produce every year. The insurance company you choose will then purchase carbon credits from various carbon offset schemes on your behalf. The more CO2 your car produces, the more carbon credits the company will purchase.

What is a carbon offset scheme?

There are several different types of carbon offset schemes that run all over the world. They can involve planting trees, recycling and other environmental efforts. Some insurers will offset all of the emissions you produce whilst others will use a percentage of your premium to help fund schemes. Other insurers will make a charitable donation to ecological charities using a percentage of your premium.

Can I get cheaper insurance if I drive an eco friendly car?

Most ordinary insurers offer special deals for people who drive more eco friendly cars and your premiums will be based on things like the size of your car, the size of your engine, the fuel you use and the number of miles you drive, so if you choose a more eco friendly car you can end up getting cheaper car insurance.

However, green car insurance can be more expensive than ordinary insurance because a percentage of what you pay will be going towards carbon offset schemes or ecological charities.

How can I find the best deal on green car insurance?

One of the most effective ways to find a good deal on car insurance is to check price comparison websites. Most insurers will offer special deals online and you'll be able to find out the details about exactly what is offered by any carbon offset scheme, so you can decide whether the projects being funded are worth the extra expense.

Can I reduce the cost of my green insurance premiums?

As with any type of car insurance, it's possible to reduce your premiums by choosing the right car. In basic terms, if your car is a gas guzzler you can expect to pay more, so choose a car with good fuel economy and a smaller engine.

If you agree to limit the amount of mileage which you do, you can significantly reduce the costs of green car insurance because you're less likely to have an accident or need repairs if you limit your mileage, but you'll also be producing less CO2.

If you want to limit your mileage you can try using public transport or setting up a car share scheme with colleagues. Bear in mind that if you go over your mileage limit you can make your policy void, so make sure you stick to the limit set out.

You can also reduce the cost of your insurance by making sure that your car is as safe and secure as possible, so fit a good alarm system and an immobiliser and try to park your vehicle off the road or in a garage. Limiting your mileage is also a great way to reduce your carbon footprint in these environmentally-conscious times.

Increasing your excess can also be a good way to reduce your insurance premiums, but don’t forget that if you need to make a claim you will have to pay the difference and if you can't afford to do so you may be left without the funds to repair your car.

If you can afford to pay for your insurance in one lump sum rather than on a monthly basis, you'll be rewarded with a discount by most companies. You can also get a discount if you insure more than one vehicle with the same company.

In some cases you'll be offered a significant saving if you take out other forms of insurance, such as life insurance, with the same company.

It's also a good idea to take the time to look around for a better deal when your insurance is up for renewal, rather than simply renewing your existing policy as you could find that offers and discounts will have become available from other insurers.

Many drivers wrongly assume that their insurance will cover them for the same things in Europe as it will in the UK, but this is not always the case as some insurers do not offer comprehensive European cover as standard. This means you may have to purchase add-ons to your current policy or separate European car insurance if you're planning to travel abroad.

Can I legally drive in Europe with UK insurance?

If you have insurance for your car in the UK then you can drive legally in most European countries, including those that aren't in the EU. However, it is worth noting that in most cases you'll only have the minimum amount of cover, even if you have comprehensive UK insurance.

Until recently you needed an International Certificate of Motor Insurance or a Green Card to drive in the EU and, although this is no longer a legal requirement, it can be a good idea to get a green card as it's an easy way to show that your vehicle is legal and insured. You can obtain a green card from your insurer, but it can’t be used as a substitute for more comprehensive cover. In fact, in many countries, having a green card will only afford you the same level of protection as third party cover would in the UK.

What is covered by European car insurance?

Many holidaymakers prefer to find European cover that offers the same level of protection as their UK insurance, but bear in mind that different policies will offer different things and always read any policy carefully so you know exactly what you are and are not covered for.

You can buy annual European car insurance but this will normally only cover you for a period of 90 days or less, so if you're going to be away longer you will need extended cover. You can extend the cover you have or look for a specialist insurer that offers car insurance overseas for longer periods of time.

If you're only going to be away for a short time it can be more cost effective to purchase short term or temporary insurance which can cover you for between 1 and 28 days in total. However, if you're planning to go abroad more than once in a year then it can work out cheaper to buy an annual policy rather than purchasing a separate plan each time you travel.

Make sure you understand exactly what you will be able to claim for with your European Car Insurance and make sure you find out which countries your policy covers as some insurers will only provide policies if you travel within the EU. So, even if you are just travelling through a non-EU country such as Switzerland, you'll still need to be insured.

You should also make sure you understand who is entitled to drive your car in Europe if you are planning to share the driving on your trip.

Will Breakdown Cover be included in my policy?

As with insurance in the UK, breakdown cover may not be automatically included in your policy, but having someone to call on if your car runs into trouble can be a useful lifeline so it can be wise to choose breakdown cover as an add-on if it's not included.

In general, provision of a replacement vehicle will not be included in basic cover so if you want to be able to get access to a vehicle if your own one breaks down, remember to include this in your policy too.

Can I get European cover if I'm under 21?

The majority of providers won't offer European insurance if you're under 21 and many will not provide insurance for those aged under 25, so if you're younger than this you may find it difficult to get your vehicle insured. However, it's always worth finding out whether an insurer will consider you, if you're not sure then contact your insurance company.

How can I find cheap European car insurance?

If you want to find cheap European car insurance then a good place to start is by checking comparison websites where you'll be able to get several quotes and search for insurance that meets your specific needs. Many insurers will also offer a discount if you buy online as it costs them less to process an online purchase than one which involves paperwork.

If you already have UK insurance then it may be worth finding out if your current insurer can offer you a discount if you take out another policy with them.

The cost of repairs can be more expensive in Europe than the UK and most insurers take this into account when setting premiums. In the UK, the more expensive and powerful your car is the more it costs to insure and the same rules generally apply to European insurance. If you want to keep the costs to a minimum then avoid taking expensive, powerful cars abroad or cars that have parts that are difficult to replace.

With petrol prices still high, and the cost of car insurance steadily rising, motorists are shelling out more than ever to keep their car on the road. Despite the rising costs, for many people the need for a car is simply not going to disappear. The challenge for drivers now is to try and keep costs down wherever they can.

Preventing a breakdown scenario

This can be easier said than done, especially if you use your car regularly. But one area where it is possible to save money is with your car’s maintenance.

A breakdown can happen at any point, no matter what type of car you have. In order to try and avoid any scary motorway breakdown situations and keep your car running smoothly for as long as possible, there are certain steps you can take.

There are steps you can take to reduce the chances of breaking down in the first place:

Step 1 - One good way to reduce the risk of breakdown is to take your car for a regular check-up at a garage. This doesn’t necessarily have to be once a month, but at least twice a year is the best plan to prevent problems before they occur. While many motorists will perform their own checks on their car, a mechanic will be able to get a better look underneath the vehicle and perhaps spot things that others would not.

Step 2 - It is also a good idea to be aware of any different noises coming from your car, or any changes in the way it drives or handles. These could turn out to be nothing, but it is a good idea to investigate as any problem left untreated will only get worse – costing you even more in repairs.

Step 3 - It can be beneficial to take your car for a professional check-up more often than the MOT requires, but there are a number of measures which you yourself can take to keep your car healthy. One of the most important of these is to keep the various fluids your car needs topped up. Everything from engine oil to brake fluid, coolant to antifreeze, should all be maintained and checked regularly.

Engine oil should ideally be checked about once every two weeks, or before any long drive. Not only will this keep your engine healthy, but you’ll also be able to identify unusual oil consumption.

A high level of oil consumption could mean there is a problem with your engine, so checking regularly will help prevent the problem developing further.

Other checks, such as engine coolant, brake fluid, power-steering fluid and antifreeze should all be checked regularly and topped up when needed. When it comes to the winter months, antifreeze and screenwash should be monitored closely.

Step 4 - Before it gets too cold, it is a good idea to check the concentration of the antifreeze, while using a good screenwash additive will prevent freezing.

Step 5 - One final preparation you might want to make is with your car’s tyres. These are a vital part of any vehicle, and it can be dangerous if they are damaged or the tread is low. It is a good idea to check the pressure of your tyres regularly, if the pressure is wrong they can become damaged very quickly.

Obtaining the correct tread on your car’s tyres is also important, as well as being a legal requirement. You can refer to your car’s handbook for further details and guidelines.

Preparing for a vehicle breakdown

Despite our best efforts, breakdowns can still happen to the best of cars. So it is also a good idea to be prepared for the situation.

Aside from the inconvenience, a breakdown can be quite a scary experience – especially on a motorway or a busy road. But there are steps you can take to remain in control of the situation and stay safe:

Even if you think your car won’t break down any time soon, it may be a good idea to keep certain items in your car just in case. The key items to alert other drivers to your presence and assist you most effectively in such a situation include:

• A warning triangle
• High visibility jacket
• A torch
• Blankets

One of the best ways to be prepared for a breakdown could involve taking out car breakdown cover. Unlike car insurance, breakdown cover is not a legal requirement. But it can turn out to be a useful type of cover to have.

There are a number of different breakdown policies available, which offer different levels of cover.

Basic policies will offer roadside assistance and recovery, with other policies offering additional cover such as home start, onward journeys and even accommodation if you are stranded, for a higher annual fee.

What is a no claims discount?

A no claims discount, also known as a no claims bonus, is a discount applied to your car insurance premium based on your recent claims history.

The precise details of a no claims discount can vary between insurers and individual policies. You will generally earn one year of no claims discount for every year you have car insurance without making a claim. The maximum amount of no claims bonus allowed is usually 5 years, although some companies will allow more.

It is also worth noting that the exact amount of discount awarded for each year of claim-free driving can also vary.

Can a no claims discount be protected?

Many policies include an optional extra premium that protects your no claims discount even if you make a claim. There is usually a limit on how many claims you can make in a given time period and still keep your no claims discount. Depending on the policy, this may be a maximum of a single claim or it may be two or more.

If you do make a claim your insurance premium may still go up when it is time for your renewal, even if your no claims discount is protected. This is because your actual claims history is part of the information an insurance company will use to calculate your new premium. A maximised no claim discount can still provide substantial savings though, and many people choose to protect their no claims discount.

Even if you do not have additional no claims discount protection, some companies will not completely wipe out or reset your no claims discount depending on the circumstances and type of claim involved. Some insurers, for example, will drop a maximised 5-year no claims discount down to 2 years when a driver makes their first claim. Claiming for a broken or damaged window or windscreen will not usually affect your no claims discount.

What if I claim for an accident that wasn't my fault?

If you are involved in an accident where the other party accepts fault completely, you may not lose any of your no claims discount. It is important to note that 'no claims' is not always the same as 'no fault' though. A disputed claim, where both parties claim the other was entirely or partially at fault, will usually result in a loss of no claims discount.

Depending on your policy, a no fault accident involving an uninsured driver and claims involving theft, fire and vandalism may also result in you losing some or all of your no claims discount.

Can a named driver build up a no claims discount?

Some insurance companies will allow named drivers to build up a limited amount of no claims discount, which will be applied when they take out a policy in their own name. Typically though, the no claims discount applies only to the main driver or policy holder.

If you have more than one car you need to earn and maintain a separate no claims discount for each. Some companies will, however, give a discount for insuring multiple cars through them. This 'introductory discount' may be based partly on the amount of no claims discount you currently hold on the first vehicle.

How do I provide proof of no claims discount to a new insurer?

Whenever you change your car insurance provider, you can normally transfer your no claims discount.

Your insurance renewal notice will usually contain details of no claims discount earned with your current or former insurer. This can be sent to a new insurer but most will also accept a policy schedule or letter from your previous insurer confirming the details of your no claims discount. Some may merely require the name of your old provider and your policy number and will make the necessary checks themselves.

Not all insurance companies will count claim-free driving of a company car when it comes to awarding a no claims discount. Many will, however, and you will generally need to provide them with a letter from your employer detailing your claims and accident history, the length of time you were insured through the company and confirming that you were the sole driver of the company car.

Many companies will also accept years of claims-free driving built up while driving abroad. You will have to provide valid proof by requesting a letter (preferably written in English) from a registered insurance company detailing your claims history and other details.

It is worth bearing in mind that there may be a time limit for you to transfer your existing no claims discount. If, for example, you get rid of your car and do not drive or have insurance for a number of years, you may not be able to transfer any previously earned no claims discount when you do get a new premium.

What is third party car insurance?

Put simply, basic third party car insurance only covers injury to people or damage to their property resulting from an accident for which you were to blame. Third party cover is a legal requirement for driving a car in any public place in the UK.

Even if you do not intend to drive a car, it must have a minimum of third party car insurance or be declared as 'off the road' with a Statutory Off Road Notification (SORN) issued by the DVLA. If you have a SORN you must surrender your tax disc and cannot drive or keep the car on any public road.

Third party car insurance covers any liability you may have for injuring another person while driving, including your own passengers. It also covers damage to other people's property caused by an accident for which you were at fault. This property is often another vehicle involved in an accident but it could also be a garden wall, a shop front or anything else that suffers damage as a result of the accident.

If your car is stolen and the thief causes an accident whilst driving it, you will be covered for any injury caused to a third party or any damage to their property. You will not be covered for any damage to your own vehicle though.

Third party car insurance will also cover you for any injury or damage caused to a third party by a caravan or trailer attached to your car.

What if an accident wasn't my fault?

Third party car insurance only covers you for injury or damage caused to a third party arising from an accident that was your fault. If you are injured or your car is damaged in an accident that was not your fault, you must pursue your claim through the other party's insurer.

If you can prove the accident was not your fault (or the other party accepts the blame) their insurers will make a payout to you. Where fault is disputed, the insurance companies involved will take statements from the parties involved and any other evidence available into account before making a decision on who is liable.

If you are involved in an accident with an uninsured driver you will obviously not be able to make a claim through their insurance. If the accident was not your fault you may be able to pursue damages through the courts or claim compensation from the Motor Insurers' Bureau, which runs The Uninsured Drivers Scheme.

What are the benefits of third party insurance?

Third party car insurance meets legal obligations regarding cover and protects you against liabilities incurred by an accident for which you were at fault. The main benefit as compared to other types of insurance is that third party cover is usually seen as a cheaper alternative.

This is not always the case for every individual policy, but third party cover certainly tends to be cheaper than a more comprehensive package offered by the same provider. This may make it an attractive option for those on a budget, drivers whose cars are not worth very much and young or new drivers who have expensive premiums and who haven't had time to build up a no claims bonus. There can be more considerations when it comes to insurance than simply the cheapest available premium though.

What are the drawbacks?

The main drawback is the limited amount of cover provided by third party car insurance. If you are involved in an accident that is deemed to be your fault, third party insurance will not cover you for personal injuries or for damage to your own vehicle or property.

Basic third party insurance will not compensate you if your vehicle is stolen, set on fire or damaged by vandals.

What other types of insurance are there?

Third party, fire and theft

This is the same as the basic third party only cover, except it also pays out if your car is stolen or set on fire. The theft or damage must be reported to the police before you can make a claim of this sort. Making a claim against fire and theft can cause future premiums to rise sharply. Precautions such as alarms and immobilisers can help to reduce the risk of your car being stolen or damaged.

Comprehensive

Comprehensive insurance is also known as fully comprehensive or ‘all risk’ insurance. It provides all the cover of a third party, fire and theft insurance policy but it also protects against injury and damage caused to yourself or your vehicle and property, even if the accident was your fault. You may have to pay an excess charge on any claim but many comprehensive insurance policies have additional benefits. These can include such things as windscreen cover (meaning you don't have to pay an excess charge when fixing or replacing a windscreen), breakdown cover and other benefits, depending on the policy.

Who to sell to

There are various options available when it comes to selling your car. You can sell it to a trader (including trading the vehicle in a part exchange deal), sell it at auction or make a direct private sale to an individual.

The best option for you will probably depend on how much you want for the car, whether you need a quick sale and whether you're prepared to expend a little extra effort making a private sale. Traders offer a quick, hassle-free option but they do make offers with profit margins in mind. Auctions can also provide a quick way to sell but the auctioneer will take a fee, which is often a percentage of the final price. You will also have to pay extra to set a reserve price, which means that your car will not sell unless bidding reaches a certain price.

Selling to a private individual can often bring the best price, but you may have to wait longer and put in a little extra effort before making a sale.

Preparing your car for sale

One of the most important parts of any car sale, for both seller and buyer, is the price. There are many sources on the Internet offering free used car estimates. A mechanic or dealer may offer you an evaluation and you can also check what others are selling the same type of car for.

The make, model and age of the car will provide a starting point but the condition, mileage and options such as interior trim, music players, air conditioning etc. will also have a bearing on the price. Even the colour of the car can affect the price. Remember though that these are only estimates. How much you receive will depend on the current market and how much a buyer is willing to pay. In order to get the full estimated value or even more, you may have to be prepared to wait.

Many sellers will keep three basic figures in mind. These are the ideal price, a fair price that they would be happy to sell the car for and an absolute minimum price below which they won't sell.

Minor and cosmetic faults can turn a basically sound vehicle into an unattractive prospect and could lower the final sale price by a greater amount than it would cost to rectify them. Paint touch-up sticks can be used on minor chips and blemishes. Oil, water and other fluid levels can be easily topped up and tyres can be inflated to the correct pressure. A clean, fresh smelling car is also likely to fetch more than a dirty and unkempt one.

It can save time if you collect all relevant paperwork such as the logbook, MOT certificate, service history, repair receipts and any existing warranties before anyone comes to view the car.

It may also help if you make sure you know where the VIN (Vehicle Identification Number) is located, as a cautious buyer may wish to check this.

Advertising

There are many places to advertise a car for sale, from specialist sites online to newspapers and the local shop or post office window. It's generally a good idea to include as many details as possible in the space you have.

Important information to list on an advertisement could include:

• The exact make & model 
• Year of the car
• Current mileage
• Colour
• Service history
• Number of owners 
• Features/modifications 
• Photographs of the car can also be included, especially if you are advertising online.

Staying safe

While selling a car is usually straightforward, sellers (and buyers) can sometimes be the victims of fraud and other crime. If you are selling a car from home you may wish to ensure that someone else is with you whenever a potential buyer comes to view the car. It's not generally advisable to let a viewer take a car for an unaccompanied test-drive.

You should also be aware that there may be issues with your insurance when it comes to offering test drives. If a viewer says they are insured to drive any car with the owner's permission, it can be a good idea to ask them to show you the paperwork.

If you are being paid by electronic transfer or cheque, it may be a good idea to wait until funds have cleared before handing over the keys.

Documents and red tape

The Driver and Vehicle Licensing Agency (DVLA) state that it's important to tell them as soon as you sell your vehicle or you'll continue to be responsible for paying the vehicle tax or penalties for the non-payment of it. If you fail to tell the DVLA you could be held responsible for any future motoring offences committed in the vehicle.

You can inform the DVLA by completing and sending the relevant part of the registration certificate (logbook).

If you are getting a new car, you may be able to transfer your existing insurance policy.

Organising for your car to be towed away and repaired may be a simple process in the UK, but if you are unfamiliar with the language of the country you are in it can be difficult to organise the logistics of getting back on the road again.

Many insurers will offer breakdown policies that cover you for driving in the whole of the EU. Putting this in place before you head abroad could potentially save you time and money in the long run, and ensures that you are covered for every eventuality.

Pre-trip planning

Visiting your local garage to get your car serviced and checking that everything is in working order from your engine to your tyres is something many people like to do before taking any long journey. Ask the garage that is servicing your car to check your brakes, lights and tyres as well as checking water, oil and tyre tread and pressure levels.

Having the following items in your car will ensure that you comply with the breakdown rules of most EU countries, and they can act as a safety net while you wait for assistance: a warning triangle, a complete set of bulbs, first aid and a fire extinguisher. You will need to ensure that you have a headlight beam reflector for when driving on the opposite side of the road, as well as a rear GB sticker.

For vehicles made after March 2001, they should already have a number plate with a GB Euro sticker on it, and in this case you shouldn’t need a GB sticker.

Map out your route

Using an online route planner to ensure you have a clear itinerary before you leave may also help to anticipate any potential hazards or problem areas. Tourist offices should be able to provide maps and guides and if you have a sat nav you can also download a map of the country you are visiting.

Understand the road rules in the country you are visiting

Each country has its individual road rules, traffic regulations and driving style and you may find that it is easier to familiarise yourself with these before you take your trip abroad. The Foreign Office website offers safety tips for driving abroad and embassies may also be able to provide you with the information you need.

You may need to take extra caution when you are approaching junctions and roundabouts as everything will be the reverse of rules in the UK.

As an example of differing road rules, if you break down on an auto route in France it is illegal to call with your mobile phone and you need to use the SOS boxes to call for assistance.

Understanding key road signs in another language can also be helpful so that you understand that parking in a 'zona de grua' in Spain, for example, will mean that you will be towed away.

Ensure all your paperwork is in place

Before you take your trip you will need to ensure that you have your full driving licence (plus its paper counterpart if you have a photocard licence), and the full details of your insurance policy.

It may also be helpful to bring along your vehicle registration document (you can apply for a replacement using Form V62, which you can get from a Post Office or direct from the DVLA), and take copies of all your documents, as you might with your passport, in the event that you should lose them or they are stolen.

Green cards

The Green Card system is overseen by the Economic Commission for Europe. It is not an insurance policy but it is proof that the minimum legal requirements for third party liability insurance, in any country for which the Green Card is valid, are covered by the insured individual’s own motor policy. You will need to ask your insurer if they will provide you with a green card.

A green card is needed in the following countries: Albania, Belarus, Bosnia and Herzegovina, Former Yugoslav Republic of Macedonia (FYROM), Islamic Republic of Iran, Israel, Moldova, Morocco, Russia, Serbia and Montenegro, Tunisia, Turkey, Ukraine.

Breakdown cover

As with a breakdown scenario in the UK, when you breakdown abroad the first step is to call your policy provider who will arrange for your vehicle to be towed to the nearest garage if it can’t be repaired at the roadside. Your breakdown provider may also help you with alternative transport or accommodation, as well as providing repatriation to the UK for you and your passengers if this is required.

If you are hiring a car abroad then the rental company will probably be responsible for any repairs or assistance you will need in relation to your hire car.

Check that you have breakdown cover that covers the EU. You may be able to ask your insurer to upgrade you policy to encompass European cover if this is not already in place.

Having breakdown cover in place will mean that you are able to call English-speaking representatives at all times of the day to get assistance.

Why is the correct tyre pressure important? Maintaining the correct pressures for your vehicle is important because it can help to...

Reduce the risk of potential blow-outs

The air pressure inside a tyre is what helps to bear the vehicle's weight. If a tyre is under-inflated there may not be enough air to properly support the vehicle. This can put extra pressure on the tyre's sidewalls, causing them to flex beyond their normal limits. This in turn can lead to a build-up of excessive heat and a potential high speed blow-out.

Improve road handling

An under-inflated tyre will be less rigid than it is supposed to be, resulting in poorer handling and steering control. An over-inflated tyre reduces the surface area of the tyre that is in contact with the road at any one time. This can lead to a loss of grip and increased braking distance, especially in wet or icy weather conditions.

Increase tyre lifetime

A correctly inflated tyre is designed to spread the wear and the pressures that are exerted on its surfaces. An over-inflated tyre can cause premature wear along the centre. Over-inflated tyres can also be more susceptible to damage caused by driving over potholes and other irregularities on the road.

An under-inflated tyre can cause premature wear to the tread and to the shoulder of the tyre – the part at the edge of the tread where it changes to the sidewall.  By law, car tyre treads in the UK must have a minimum depth of 1.6mm and the tyre must also have intact shoulders and sidewalls. Driving with tyres at the recommended pressure can save money by increasing the safe and legal lifetime of the tyres.

Provide more efficient fuel consumption

Under-inflated tyres are less rigid and more of the surface area of the tyre will be in contact with the road at any one time. This results in greater friction between the tyre and the road, requiring more power to move the car.

This, in turn, means you will use more fuel. Ensuring your tyres are inflated to the correct pressure will help save you money in fuel costs and will also help the environment by lowering your general Co2 emissions.

Finding the recommended pressure

There are a number of ways to find the correct tyre pressure. Car manufacturers specify the recommended pressures for tyres fitted to their vehicles. These recommended pressures can be found in the car owner's manual. They may also be printed on the inside of the driver's door or the inside of the petrol tank cap.

The air compressors available to customers at many petrol stations will often have a chart, listing recommended tyre pressures for many popular makes and models of cars.

There are also a number of websites that allow you to check your recommended tyre pressures online. You can generally do this by entering the make, model and year of your car. Some sites will also allow you to enter your registration number and will find your car specifications for you.

Front and rear tyres may have different recommended pressures. Recommended pressures may also vary depending on the load which the car is carrying. If you are carrying a heavy load or towing an additional load such as a trailer or caravan, you should check if your tyres require extra inflation.

Checking the actual pressure

You should only check tyre pressures when the tyres are cold (i.e. before making a journey of any great length). Driving causes the tyres to heat up and this can lead to inaccurate pressure readings. Making a short journey to check your tyres at a nearby petrol station might not make a huge difference, but to ensure the most accurate reading you should allow the tyres time to cool down before taking a reading.

You can check your tyre pressures using a tyre pressure gauge. You can buy pressure gauges to use at home or on the road or at a garage or petrol station with an air compressor.

Remove the tyre valve cap, attach the pressure gauge and check the reading. This may be a digital reading, an arrow on a gauge or a 'pop out' stick with measurements depending on the type of gauge you are using. Tyre pressure can be expressed as either bar pressure or psi pressure.

If you are checking a particular tyre because you think it looks or feels under-inflated, it's generally worth checking all your tyres at the same time. Spare tyres should also be checked at regular intervals.

If you are not confident in checking the pressures yourself, most garages will also do it for you.

Inflating your tyres

Tyres can be inflated using compressors and pumps of various types. Some will have a built-in pressure gauge, allowing you to set the desired pressure or keep an eye on the gauge until you reach the correct pressure. Air can be let out of an over-inflated tyre by partially removing the gauge or compressor nozzle from the tyre valve until you hear the hissing of escaping air.

Small is beautiful: how car insurance price bands work

UK cars usually have an insurance band rating, which range from one (cheapest) to 50 (most expensive). The ratings are determined by the Group Rating Panel, which is made up of members of the Associated British Insurers and Lloyds Market Association. Motor research group Thatcham provides assessments of vehicles, which guides rating decisions.

The banding system is based on the cost of replacement parts, how easy and costly a car is to repair, the new value of the car, its performance, and security features.

So it follows that a cheaper car, with a smaller engine and good safety features, should have a lower insurance band and may be cheaper to insure. Remember too that modifications to a car made after it has left the factory, such as the fitting of alloy wheels or engine performance tweaks, can also increase insurance premiums.

Build up a no-claims discount

These are usually earned for every 12-month period in which an insured driver doesn't make a claim on their policy. Their value varies from insurer to insurer, but a bonus of five years or more could reduce some car insurance prices by 60 to 75%.

Cut your mileage

Reducing the number of miles you drive in your car is not only good for the environment - and potentially for you health if you choose to walk or cycle instead - but it could also lower your car insurance costs.

Drivers who rack up large annual mileages are considered a higher risk because they have more opportunities to suffer a collision. All insurers will ask how many miles you drive each year, while some offer limited mileage policies, whereby you agree not to drive more than an agreed amount, for example 5,000 miles.

Garage your car at night

Keeping your car in a garage, or at least on a private drive, is another way of keeping down car insurance prices. Vehicles that are locked away are much less likely to be stolen or involved in accidents while parked - and they are also less likely to be vandalised.

Become a better driver

There are several advanced motoring courses that help drivers improve their skills and can see insurance premiums reduced. The Institute of Advanced Motorists introduced its advanced driving test in 1956 and has been running the course to improve safety and confidence in drivers ever since. To date, more than 400,000 people have taken the advanced test with an average pass rate of around 75%.

Other organisations that offer advanced motoring courses include The Royal Society for the Prevention of Accidents, Diamond, and the Guild of Experienced Motorists, while the Government-endorsed Pass Plus scheme can help newly-qualified drivers reduce their insurance premiums.

Compare like with like

While we all love to find the lowest car insurance prices, it should be remembered that cheapest is not always best. When hunting for a great deal on car cover, ensure you compare like with like as some policies won't offer the same level of protection as others and there may be hidden costs such as high excesses, or extra fees for a courtesy car.

You can obtain an EHIC card for free by visiting www.ehic.org.uk and this will entitle you to the same treatment costs that are incurred by residents, so if healthcare is free you won’t have to pay a penny. If you do have to make a contribution towards healthcare, keep your receipts and you may be able to claim some of the money back when you return to the UK.

If you need to make a claim on your travel insurance within countries covered by the EHIC, and have a valid claim insurers are unlikely to deduct the excess where the cost of your claim has been reduced by your using your EHIC.

The EHIC does not replace travel insurance as it will not cover costs such as mountain rescue in ski resorts and flying you back to the UK (repatriation) should the need arise. It also only relates to medical cover and will not protect you in other areas, such as compensation for stolen luggage or money.

What are the costs involved with an EHIC?

The EHIC was introduced in 2006 and was designed to replace the old E111. You can apply for the card for free by filling out a simple online application form. The EHIC is valid for up to five years, and can be renewed for free. The EHIC covers any medical treatment that becomes necessary during your trip, usually because of either illness or an accident.

This is in addition to treatment of any chronic or pre-existing medical condition that is needed during your stay, as well as costs for routine maternity care, as long as you're not going abroad to give birth. Medical treatment through the EHIC is at a reduced cost or free at state hospitals and medical centres within the EU. Most countries in Europe are covered by the EHIC. For a list of countries covered check out the NHS Country Guide.

Travel insurance in Europe

While the EHIC does offer medical care, it may always be worthwhile choosing additional protection in the form of travel insurance.

Benefits you can expect

European travel insurance policies have numerous benefits and can cover you whether you are planning a trip closer to home in the Channel Islands or heading further afield to countries such as Morocco. Below are some of the key benefits you should look for in your policy:

• Medical expenses
• Personal liability (if someone is injured or their property is damaged by you or something belonging to you)
• Personal Accident
• Personal Effects and Baggage
• Repatriation (the process that returns you back to your home country)

How do the different levels of cover affect my benefits?

Standard or superior cover (which can be described as silver and gold or in other ways) can give you additional benefits to value cover. This can include catastrophe cover (natural disasters such as floods, earthquake or storms), Hospital Benefit and Scheduled Airline Failure Insurance (if your tour operator is not already covered by ATOL).

Some benefits may exist across all three policies, but in general the more comprehensive the policy you get the higher the payout for each type of benefit is likely to be. Selected benefits across all policies will also incur an excess charge that requires you to contribute a fixed amount towards the costs.

Why should I opt for annual cover over a single trip policy?

A multi-trip policy will allow you to visit your favourite holiday destinations time and time again, including weekend breaks, without having to organise travel insurance each time. As an added bonus you may also get cover for your staycations in the UK, covering you for unexpected events such as falling ill before you go or losing luggage.

I have a pre-existing medical condition. Can I still take out a travel insurance policy?

If you have a pre-existing medical condition, it is important that you declare this at the time of taking up the policy if this is requested by your travel insurer. Although some travel insurance providers will have specialist policies for pre-existing medical conditions that normally come at an increased price compared to standard travel insurance policies, you can also simply buy a policy that excludes cover for the condition(s).

Pregnancy cover

If you are travelling between 28 and 35 (inclusive) weeks pregnant, then any medical and additional expenses incurred due to complications in pregnancy should be paid. However, you may need to ensure that you receive confirmation from your doctor or midwife that you are fit to travel no earlier than five days before you travel. Please check with your travel insurer.

Am I covered for sporting activities?

Cover for a variety of activities should already come as standard with your policy and this can include a number of sports such as canoeing, kayaking, rafting, water skiing, scuba diving and snorkelling. However, these may all be subject to certain conditions.

If you are planning a skiing holiday on the slopes of Val D’Isere in France, you may want to add winter sports cover to your travel insurance policy.

This can give additional cover in the following areas:

• Winter Sports Equipment
• Equipment Hire Charges
• Unused Ski Pass
• Piste Closure
• Avalanche Cover

What's the difference between annual and single-trip insurance?

Single-trip insurance, as the name suggests, provides protection for the duration of a single trip. Typically, the destination and duration of the trip must be provided and only this trip will be covered by the policy. Single-trip insurance policies can be taken out by individuals and group or family insurance policies can also be taken out to cover single trips.

Annual travel insurance gives the policy-holder protection for multiple trips taken over the course of a year. This can be both handy and more cost-effective for people who take multiple trips per year. The cost of an annual travel insurance policy could be considerably less than the combined cost of several single-trip policies. You do not have to arrange new cover every time you take a trip, which can be particularly useful for last minute trips.

Additionally, the levels of cover offered are sometimes more generous on annual insurance policies.

What does annual travel insurance cover?

The levels of cover will vary from insurer to insurer and between individual policies. A comprehensive annual travel insurance policy will, however, typically include medical cover, cover for lost or stolen baggage and cancellation cover.

Other benefits may include 24-hour assistance helplines and personal liability protection to cover you if you cause injury to another person or damage to property. You can also cover your spending money against loss or theft. In the case of theft, you will be expected to report the crime to the local police.

The exact amounts covered will also vary. How much you need depends on your personal circumstances but many people will want to match the level of cancellation cover to the cost of their holiday and the level of baggage cover to the cost of all items in their baggage. There may be a cap on the maximum value of any one item, but individual items such as laptops or expensive camera equipment can sometimes be specified and covered separately.

There may also be exclusions in an annual travel insurance policy. These can include activities that are deemed dangerous such as skiing, water sports and bungee jumping. Many activities and circumstances that are not covered in a standard policy can, however, sometimes be added as extended cover elements for an extra cost on the premium.

Who does it cover?

Annual travel insurance can be purchased to cover any individual or couple making multiple trips in the space of a year. If you are planning on travelling as a group it may be worth looking into family cover or group travel insurance policies. Family and group cover may also be available in an annual or multi-trip format, covering a group of named individuals for multiple trips in a year. If you take more than two family holidays a year, this can be well worth checking out.

Is annual cover suitable for a gap year or backpacking?

Annual travel insurance is often ideal for people who make three or more trips abroad in the space of a year. It is designed to cover individual trips though. Typically, annual travel insurance covers a number of individual trips, each lasting a maximum number of days.

These periods can often be extended (usually at an extra cost) but there will still be a limit on the number of consecutive days of travel covered for each individual trip. Usually, the maximum covered is between 30 and 60 days. The number of trips covered is often unlimited but each individual trip must last no longer than the maximum period allowed.

Backpackers and gap year travellers will usually require unbroken cover for longer periods. Specialist backpacker policies that cover extended trips abroad may be more suitable for this kind of traveller.

Do I still need a European Health Insurance Card?

The *European Health Insurance Card (EHIC) allows you to receive free or reduced cost medical treatment in any European Economic Area country. These include all countries in the European Union plus Iceland, Norway and Liechtenstein. Switzerland is also covered.

The EHIC basically provides you with the same treatment as a resident of the country you are visiting. It's worth noting that this may not be equivalent to treatment provided on the NHS. The treatments available vary from country to country, as do the costs. Some treatments will be free, depending on the country you are visiting, while others may require a 'patient contribution'.

The EHIC does not provide private medical treatment. It also does not cover the cost of emergency repatriation to the UK in the event of a serious accident or medical condition. The EHIC will not provide any medical cover when travelling in countries outside Europe.

Before you decide whether or not ski travel insurance is right for you though, it is important to consider exactly what is covered within such a policy.

What does ski insurance cover?

Ski insurance will usually cover you against all the same eventualities as more general travel insurance. These can include injury and illness, cancellation and delay and loss or theft of baggage, personal belongings and holiday money.

Like other forms of travel insurance, ski insurance may also cover you if you have to cut short or cancel your trip because of illness, injury or the death of a relative. A policy may provide personal liability cover in case you injure someone or cause damage to property and it can also cover the costs of emergency repatriation.

The main difference between ski insurance and other types of travel insurance is that it actually covers you against injuries or losses incurred while skiing – an activity that is often not covered on more general policies. This is one of the main reasons that people opt for this specific policy over other, more wide-ranging insurance options while skiing.

In addition, there may be higher levels of cover regarding loss, theft or damage. This reflects the value of associated skiing equipment, which can be very expensive whether it is owned or hired.

The chances of injury are higher on a skiing trip than on many other types of holiday. No matter how competent an individual skier may be, accidents can happen and the consequences can be very expensive. Most ski insurance policies will cover the costs of any medical treatment required, as well as things such as on-piste rescue and the cost of an air ambulance.

Ski insurance may also provide cover for things specifically linked to ski holidays, such as the loss of ski passes or reimbursement of equipment hire costs, ski lesson fees and lift passes should you suffer an injury. Some policies may allow you to claim back the cost of a ski pass should you be unable to ski due to a lack of snow.

What about other winter sports and activities?

Many ski insurance policies will only cover skiing but some may include other winter sports and activities. This can include cover for skiing, as well as other activities such as tobogganing, ice-skating and luging. If you are planning to participate in any of these more obscure activities it is important that you read the terms of a potential policy carefully to make sure you will be covered under its terms.

It's worth noting that some standard ski insurance policies may not cover off-piste skiing or heli-skiing. Specialist policies are available for those who wish to stray away from the ski lifts and can include search and rescue cover.

Can I get annual ski cover?

Ski insurance often works like a specialised version of a standard single trip travel insurance policy. This means it covers you for the duration of a single skiing trip. Typically, there will be a maximum duration and the premium you pay may be partly based on the length of the trip.

With annual travel insurance, the policy holder is covered for multiple trips taken within the space of a given year. Some companies may offer ski or winter sports insurance on an annual basis. If you take more than one or two skiing trips per year, it may be more cost effective to seek out this type of cover. Consider all the factors carefully before you decide whether or not such an option suits your own personal circumstances.

What precautions should I take?

Insurance companies will usually expect you to take sensible precautions, especially when participating in a potentially hazardous activity like skiing. Some insurers, for example, may require you to wear a helmet while skiing. If you have an accident while you are drunk or have taken drugs, it may invalidate your claim. Similarly, some policies may not pay out if you were not following standard safety procedures and protocols on the ski lift or slope.

Other health and safety issues might not directly affect your insurance but can help you stay safe and healthy whilst on your skiing trip. Freezing temperatures and high altitude sunlight can lead to increased risks of both hypothermia and sunburn.

Dressing appropriately in warm, layered clothes, packing sunblock and protecting your eyes are all steps that can help you enjoy a happier and healthier skiing experience.

If you only make one or two trips, of limited duration, over the course of a single year, single trip travel insurance can be the cheapest way to obtain cover.

If you are a more frequent traveller, annual or multi-trip travel insurance may be a more cost effective option. Annual travel insurance covers the policy holder for multiple trips taken over the course of a year. An annual insurance policy will tend to cost more than a single trip policy offering similar cover, but may cost much less than several single trip policies combined.

If you are travelling with a family or other group, family or group cover may be better value than individual single trip policies. Again, the key is to evaluate what you want from a policy and exactly what is on offer.

A single trip policy will usually have a maximum duration. The maximum length of the trip can vary but it might not be enough to cover lengthier excursions, even if they are still technically single trips.

Other options such as long stay travel insurance or backpackers insurance may be more suitable depending on the circumstances of the trip. Most insurers will take the length of your trip into account when working out the premium you pay.

What is covered by single trip travel insurance?

The list of eventualities covered and the amounts for each eventuality will vary from insurer to insurer and between individual policies.

These eventualities can include injury and illness, cancellation and delay, loss or theft of baggage, personal belongings and holiday money. Single trip travel insurance may also cover you if you have to cut short or cancel your holiday because of illness, injury or the death of a relative.

A policy may provide personal liability cover in case you injure someone or cause damage to property. It may also cover the costs of emergency repatriation. There may be a 24 hour emergency hotline and you may be able to get help if you lose your passport or other important documents.

The amount of cover offered will also vary. Medical and personal liability cover can often run into millions. It can be difficult to know how much cover you need for these things, but if you're unsure you can always ask the insurance company what they would recommend and why. They will be happy to help and can hopefully help you to come to a sensible decision on this issue.

Other levels of cover may be easier to judge. Many people would, for example, want to match the amount covered for cancellation to the cost of a holiday, or the amount of cover for baggage to the approximate value of the belongings they're taking away.

Exceptions and excess

There may be an excess you have to pay in the event of making a claim. The amount of excess payable may vary widely between policies. The amount payable can also vary on the same policy, depending on the type of claim you are making.

There may also be exceptions built into a single trip insurance policy. These could include activities that are considered dangerous such as water sports, climbing and bungee jumping. Injury or loss of property due to terrorist activities used to be routinely covered but are now frequently excluded.

Can I get additional cover?

Many insurers will offer specialist versions of standard single trip insurance policies or will allow you to choose additional extras at extra cost. These extras could include things like ski insurance or winter sports cover.

There may be a cap on the maximum value of any one item covered under loss of baggage or personal items. Individual items such as laptops or expensive camera equipment can sometimes be specified and covered separately though.

How do I choose a policy?

Taking out travel insurance is not compulsory, but it can protect travellers against a range of eventualities, from the merely inconvenient to the truly catastrophic. There is no such thing as a perfect, 'one-size-fits-all' single trip insurance policy though.

The right policy for any individual will depend on several factors, including the type of trip and the amount of cover required. Cheaper policies may have higher excesses to pay in the event of a claim or may offer more limited cover. There are many options available and what's right for one person might not be ideal for another.

Which policy is best for me?

If you take holidays several times a year, you may wish to invest in a multi-trip policy that will cover you for an unlimited number of holidays within a period of 12 months, although the duration of each holiday is normally a fixed number of days, there may be a maximum number of days you can have on any travel insurance policy. If you are confident that you are only going for one break in the year then a single-trip policy may be better suited to you.

You can also make the choice between a policy that just covers you for most countries in the European Union (EU) or one that covers you Worldwide, including all countries in the EU and the US.

If you are travelling alone you can take out individual cover or choose couples or family cover for larger groups.

What does your policy cover?

The maximum amount paid out for each aspect of your insurance policy will vary depending on the level of cover you choose. Cheaper policies may also omit certain benefits, so it is important to identify what you need from a policy. When choosing travel insurance try and ensure that it has the following key benefits:

• Medical expenses (any cost incurred in the prevention or treatment of injury or disease)
• Hospital benefit (benefits that pay for hospital visits, including the room and other costs incurred during the stay)
• Repatriation (the process that returns you back to your home country)
• Personal Accident cover (a lump sum is paid out in the event of an accident resulting in permanent injury or fatality)
• Personal liability (if someone is injured or their property is damaged by you or something belonging to you)
• Cancellation (provides a fixed amount if you have to cut short or cancel your trip)

Additional benefits

If you are travelling independently and are worried about your airline going bust then you may want to include scheduled airline failure insurance (SAFI) in your policy.

If your holiday package is already protected by ATOL, a financial protection scheme managed by the Civil Aviation Authority (CAA), then you are covered if a tour operator goes out of business and the CAA will ensure you don’t lose the money you have already paid. They will also arrange for you to finish your holiday and fly home.

Other benefits that you may want covered in your policy include personal effects and baggage, legal expenses and replacement costs for losing your passport or drivers licence.

Policy excess

Some benefits carry an excess payment, meaning that you will have to pay a fixed amount will be deducted from the amount you receive from a claim.

Travel to Australia

Most insurers will require you to register with Medicare when you seek medical treatment in Australia. This is the country’s state healthcare system and it part of a reciprocal healthcare agreement between Commonwealth countries including the UK. A Medicare card will entitle you to the following benefits:

• Free treatment at a public hospital in-patient or out-patient department
• Selected medicines subsidised under the Pharmaceutical Benefits Scheme
• Medicare benefits for out of hospital medical treatment provided by doctors through private surgeries and Government Health Centres

Sporting activities covered under your policy

Subject to the insurer’s terms and conditions you may be covered for playing and participating in some of the following sports and activities: surfing, snorkelling, hill walking, horse riding and scuba diving.

You may need to take out a specialist policy for winter sports such as skiing or have this as an add-on to your regular travel insurance policy. This gives you additional benefits such as cover for unused ski passes, ski hire and tuition fees due to illness or injury.

Pre-existing medical conditions

A standard travel insurance policy is unlikely to pay out for pre-existing medical conditions and any medical treatment that is needed as result. You are always required to disclose full details of pre-existing conditions when you take out the policy and some specialist insurers will cover this, normally at an increased premium. The good news is that pre-existing medical conditions won’t prevent your from securing a travel insurance policy, as you can simply buy a policy that excludes cover for the condition(s).

Immunisations

It is critical that you visit your travel nurse before you head off on holiday so you can be sure that that you are adequately protected from tropical diseases that may include Malaria and Yellow Fever. The travel nurse will be able to tell you what you need to take to protect yourself, and you should check with your insurer to see how and if immunisations affect your claims.

Traditional European sunspots continue to be popular, but activity holidays and more adventurous, exotic destinations are also drawing increasing numbers of holidaymakers aged 50 and over.

Activity holidays

Many holidaymakers like to incorporate interests and hobbies within their trips. Whether this involves golf, sailing, skiing or more niche interests, there are packages designed to meet almost every taste.

Walking holidays are popular with all age groups but may hold particular appeal to members of the over 50s set. As well as being hugely rewarding and allowing the walker to reach sights and places on foot that might otherwise be inaccessible, a walking holiday can provide a stress-busting boost to health and levels of fitness.

There are many graded walking packages available to suit all needs and ambitions and they may be tailored towards groups, couples or solo travellers. They may be domestic, with Wales and Scotland in particular offering spectacular scenery and challenging trails, while many will head for the sunnier but still accessible climes of Spain or France. Destinations in central and eastern Europe, such as Hungary and Croatia are also increasingly popular.

The central European region is also renowned for its health spa holidays. Mineral-rich thermal spring water exists beneath much of Hungary, for example, and its beneficial properties have been enjoyed for generations.

The Romans first brought the concept of spa culture to the country and the remains of some of their bathhouses can still be found in destinations such as Óbuda. The Ottoman invasion revived the tradition centuries later and Buda (the western part of the Hungarian capital Budapest) still boasts a number of original Turkish bathhouses that make use of the area's naturally heated thermal springs.

Art and culture

According to Tom Hall, UK travel editor of lonelyplanet.com, older travellers are more appreciative of the experiences they can take from a holiday. As such, they are more likely to head for 'iconic' destinations.

This could mean heading for the Taj Mahal, the Acropolis of Athens or the pyramids of the Giza Plateau. The Gulf of Naples offers the partially preserved Roman cities of Pompeii and Herculaneum with beach resorts within easy reach. The island of Ischia is a short boat ride away from the more hectic city of Naples and has the added attraction of thermal spas.

Historic cities such as Rome, Moscow and Istanbul offer their own rich experiences, while other destinations may appeal to older travellers with more specific interests. Church tours are popular in many European destinations while Amsterdam may appeal to aficionados of Rembrandt or Van Gogh. Wine-tasting tours and food or gastro tourism may appeal to others and there are as many ideal destinations as there are individual tastes and interests.

The backpacking trail

Hitting the backpacking trail is no longer the preserve of the young and destinations that traditionally drew more gap-year students such as Thailand and India are now appealing to over 50s too.

Some may have already done something similar in their youth, while others are reversing the roles and following in their own children's footsteps. Heading for far-flung destinations doesn't have to mean roughing it though, with many older travellers opting to stay in well-appointed hotels rather than cheap and cheerful hostels. Depending on the destination, hotels can still be remarkably cheap, especially if booking directly or in advance.

A spokesman for Thomas Cook told the Mail Online: ‘Getting older no longer means relaxing and taking it easy as it seems the older generation is more adventurous than ever. ‘We’ve seen a rise in the number of over-50s booking trips to far-flung destinations once their children have left home and an increase in long-duration holidays, with some booking 21- and 42-night packages.'

Other long-haul destinations including Australia, New Zealand, the United States and Canada are also popular with over 50s. Each has its own unique attractions and many visitors feel more at home surrounded by native English speakers.

Head for the sun at any time

With any kids having usually grown up and fled the nest, over 50s tend to have a greater degree of flexibility when it comes to making their travel plans. Retirees can have even more flexibility and free time and this can be handy for both avoiding the crowds and finding cheap travel deals.

Being able to jump on a plane without having to book too far in advance can result in last-minute bargains. Air fares tend to be far cheaper outside the school holidays and many accommodation providers offer great off-season deals. France, Spain and Portugal are all perennial favourites, while Cyprus offers one of the best all-round climates in Europe and, further south, the Canary Islands can offer sunshine throughout most of the year.

Consider your options

Financial considerations may play a part in deciding what you do in retirement and everybody's personal circumstances will be different. Some people like to stay in familiar places when they retire, or to be near family and friends. Others may have a dream retirement location, whether that involves moving out of the city and into the countryside, heading to the coast or even following the sunshine and retiring abroad.

Downsizing your home and/or living expenses can sometimes free up extra resources but everyone's situation will vary and what is right for one retiree might not be right for another.

Plan a trip

Many people use the extra free time that retirement can provide to travel and visit new places. Travel can often be cheaper for the older person. Many choose to travel out of season and, unless they had kids later in life or are taking the grandchildren, they don't usually have to worry about fitting a trip into school holidays.

When you travel can sometimes have as big an impact on cost as where you travel to. Flexibility can also help when it comes to finding bargains in both transport and accomodation. Many travel companies specialise in trips for the older traveller and may have special rates and deals. These can involve trips within the UK as well as overseas.

If you're on your own the prospect of travelling, especially abroad, can seem particularly daunting. There are many companies that specialise in solo holidays and excursions however and these can be a great way to meet new people while experiencing new places.

Try something new

Retirement can be a great opportunity to try new things, whether that involves taking up a new hobby such as painting or knitting. You don't have to go bungee jumping (although, if you have no relevant health problems there's certainly nothing stopping you) but you could discover talents and skills you never knew you had or simply develop new interests.

Keep physically active

Staying healthy is an important part of making the most of your retirement and keeping physically active will help you to do just that. Keeping fit and physically active can also help you to live longer and retain your independence.

Keeping active does not have to mean strenuous physical exercise. Walking, gardening and keeping up with everyday household tasks can all be beneficial. Longer, more strenuous walks or rambling can be tremendously rewarding and sports and activities such as swimming, golf, gym-based activities or tennis can all be fun while helping improve your fitness.

Many gyms run fitness programmes and activities specifically designed for older people. If you have certain health issues it may be advisable to consult your doctor before starting any rigorous exercise activities but almost everybody can benefit from exercise at some level.

Keep mentally active

Keeping mentally active can be just as important. Many people enjoy reading, doing puzzles or taking up or spending more time on a hobby they enjoy. Adult education classes can be another great way to stimulate our brains and acquire new knowledge and skills.

These can be practical or academic in nature. If you've ever fancied taking a photography course, learning to speak Italian or how to make pottery but you've just never had the time, retirement can provide the perfect opportunity.

Get involved in the community

By the time you retire it's likely that you'll have built up a wealth of skills and experience and many charities and community based groups are desperate for volunteers. You may be able to bring skills you've developed in the course of your working life or you may just be able to give time and enthusiasm. Both can be equally valuable.

As well as giving something to the community and working for a good cause, volunteering can have a social benefit, allowing you to meet new people and make new friends.

Some retirees find that they miss work once they retire. Volunteering can help fill the gap but, with the default retirement being phased out, some people prefer to return to paid work, often on a part-time basis.

Clubs and associations of various kinds can also provide fun and interesting activities combined with a social element. From ramblers' groups to wine-tasting clubs, there are interests and activities to suit every taste.

Keep up with technology

Retiring is no bar to keeping up with the latest advances in technology. Around half of the UK's pensioners are active online and the Internet can provide a range of different benefits and resources. Email and social media sites can help families and friends keep in touch no matter where they are in the world. Pictures and videos can also be shared easily and the number of 'silver surfers' online only looks set to grow.

But what are the key things to consider when planning effectively for your financial future? The key is to consider your own individual needs and those of your family, before committing to a strategy for the future.

Set your goals

Everyone's situation is different and goals and priorities can vary. Financial planning can incorporate many different goals including:

• Protecting yourself and your family
• Planning for retirement
• Planning for your children's future
• Making the best use of money and investments
• Making contingency plans for unexpected changes
• Making planned changes such as switching careers or moving abroad

Budget now and enjoy the benefits later

It's never too early to start thinking about the future. From pension funds and savings accounts to investments and insurance policies, there are many financial products that can bring potential future benefits. Most people have financial commitments and day to day expenses that have a major bearing on how much they can afford to pay into various schemes though.

Creating a budget can help to bring your current expenditure and spending into clear focus. Many people find this helps them to save money by identifying areas where cutbacks can be made. Once you have a clear idea of how much you have both coming in and going out, it's easier to work out how much you can set aside or invest on a regular basis.

A good budget should...

• Total all sources of income. These may include wages, income from self-employment, benefits, interest from savings etc
• Total your outgoings
• Split your outgoings into fixed and variable outgoings. Fixed expenditure in a given year could include mortgage or rent payments, regular loan repayments, insurance, energy bills (if split into regular payments by Direct Debit) and TV, broadband and telephone bundles. Variable outgoings could include grocery shopping, lunches and spending on entertainment and clothes.
• Be honest about variable expenditure, using past financial statements to get a good average
• Take annual expenses such as car tax and insurance (if paid in one lump sum) into account

If your budget shows a deficit between income and expenditure it makes sense to try to find areas where you can cut down your spending. If you are bringing in more than you spend, then that's good news. Many people like to leave a little extra in their budget to cater for occasional treats and unforeseen circumstances, but you should also be able to see how much you can afford to invest for the future.

Planning for retirement

In common with a lot of places, the UK has an ageing population. Many of us are living longer and it's certainly not unheard of for people to be spending almost a third of their lives in retirement. There are various pension, investment and savings plans available, but whichever type of provision you make for your own retirement, you should make sure that you research it thoroughly and get the best advice.

Some find that downsizing their homes and/or living expenses can sometimes free up extra resources. Others might have plans to move to their dream retirement spot on the coast or relocate abroad.

Everyone's situation will vary and what is right for one person might not be right for another. There's no such thing as a perfect one-size-fits-all retirement plan, but looking into all the options available should help to create the correct plan for you.

Many people prefer to take out a funeral plan whereby they can plan and pay for their funeral in advance, meaning that in the event of their death their family will not incur the expense of a funeral.

In the UK you can choose to either be buried or cremated, or you can donate your body to medical science. You can choose whether or not you want a funeral director to help with organisation and can make your funeral as personal as you like.

Funeral plans can be offered by a funeral director, insurance company or funeral plan company. To get a funeral plan you must pay a provider an agreed fee. This can be paid in installments or as a single sum. The money you pay is either paid to a funeral plan provider, invested in an insurance policy or in a trust fund and the money is released to be used to pay for your funeral in the event of your death.

The fee you pay will be agreed at the time you sign up for a plan, which means that you will not be required to pay more if the cost of your funeral rises.

How do I plan a funeral?

Step 1: Draw up a will

If you have a specific idea about how your estate/possessions should be divided up, it may be a prudent idea to create a will which takes these issues into account. This will ensure that your wishes are adhered to after your death.

The best way to approach this is probably by drawing up a meticulous record of your estate/possessions and how much everything is worth, both individually and collectively. You can then work alongside a qualified solicitor to compile a list of all the items/possessions, along with their worth, to give yourself peace of mind that everything has been covered. It is then down to you to decide exactly how everything should be divided and between whom.

Step 2: Plan the day

As with your possessions, it is likely to be very important to you that certain parts (or the entirety) of the whole day follow your wishes. This could involve everything from the music which is played at the service to how people should dress for the actual day.

Some people will also have specific ideas on how long the service should last and what kind of atmosphere should be created at any potential wake. If you have definite ideas about these issues it will provide you with peace of mind if you make them clear to a funeral director prior to your death.

Thinking about such things in advance may not be pleasant, but it is all part of taking the potential responsibility from the shoulders of loved ones, and making their lives a little bit easier on the day itself.

Step 3: Determining the structure of the service

Many people see a funeral service as a celebration of life rather than an acknowledgement of death in the modern day. With this in mind, it is important to consider what specific type of service you want. You may wish for something short, simple and sombre that does not burden your loved ones with too much grief on the day itself.

Alternatively, you may want something that genuinely celebrates your existence with music that people associate with you and stories of the life that you have led. This could potentially be a way to detract from some of the grief associated with the occasion and will encourage people to view the day in a positive light.

Step 4: Tallying the overall cost

Obviously all of the criteria outlined above will be dependent on your budget, by planning ahead you can have the funeral you wish for on the budget you can afford. It may be a good idea to consider the things which will be most important to you on the day.

It may also be worth considering the overall cost before you draw up a final copy of your will. It may be that you can free up some funds to contribute towards the funeral service itself before you finalise plans for all of your possessions.

The key with this issue is simply to take your time and make the choices which feel correct and appropriate for you as an individual.

Many types of life cover can be purchased from a fairly young age – with some available to 18-year-olds.  But at this age, people don’t generally have many financial responsibilities or others dependent on them.

But as we get older, we undertake more commitments, be they financial or otherwise. We may take out a mortgage, build up debt or even start a family – all of which place more responsibility on our shoulders.

So, it is little wonder that some people choose to take out a life insurance policy, to protect themselves and their loved ones in the future.

Life insurance comes in a number of different forms, with each one catering for different needs. But the purpose is generally the same – to provide financial protection should something happen to the policyholder.

Whatever financial commitments there may be, a key motivator for many people taking out life insurance is their family. Starting a family is one of the biggest commitments you can make, and is a life-long undertaking.

It is little wonder, therefore, that some people choose to invest in life insurance when they have children.

Joint life cover becoming more necessary

Traditionally, a life insurance policy is taken out by the main breadwinner in the family – to ensure that the family can cope financially with the main income.

But in these tough economic times, many families are now relying on two incomes to make ends meet each month. For this reason, a joint life insurance policy is becoming a more attractive life cover option.

While there may still be one main primary income in a typical family, the rising cost of living means that a lot of families need two incomes to survive. While one may be less than the other, many families would not be able to cope without both incomes coming in.

This is what a joint life insurance policy is designed for – to cover two policyholders under one policy, ensuring that each policyholder will be protected if the other passes away.

Dealing with any type of insurance can sometimes cause a bit of a headache, whether it’s deciding what type of car insurance to get, or simply how much cover you need before you go on holiday.

Life insurance is no different, and could even be said to be a little more complicated than most other insurance products out there. This is simply because people are quite complicated, so there needs to be a different type of life cover to suit the needs of each individual.

Joint life insurance explained

The concept of joint life insurance is, of course, quite simple – it is a policy to cover two people rather than one. The complexities lie in the type of cover offered to those two people.

The most common type of joint life insurance is probably first death cover. This is generally a type of term life insurance – a policy that lasts for a set amount of years, and only pays out if there is a death within the designated time frame.

As the name suggests, a first death joint life insurance policy pays out on the first death during the policy’s term. This means that the surviving policyholder and his or her family, if they have one, will receive the payout from the policy.

This is the more common type of joint life insurance, as the premiums are generally higher as the risk to the insurance provider is greater.

This type of policy only pays out once, meaning that the surviving policyholder is left without any cover. This can be problematic, especially if the second policyholder is older as it can be harder and more expensive to obtain another life insurance policy.

The second type of joint life insurance is second death cover, which pays out when the second policyholder passes away. This type of joint life cover is often used to cover things like inheritance tax, or financially support any children left behind.

As the risk to the insurance provider is less than that of first death joint life cover, the premiums for this type of cover are generally lower.

Should you take out joint life cover?

Joint life cover can be an attractive option for married or cohabiting couples, or even business partners with joint financial obligations.

But before you and your partner invest in a joint life policy, it may be worth considering whether it may be better to invest in two separate single life insurance policies.

A joint life insurance policy will only pay out once, meaning the beneficiaries will get less than if there are two single policies in place. But the cost of two single life policies can be higher than one joint life cover policy, so it may be an idea to research the costs thoroughly before investing.

It is could also be worth considering what would happen if you were to separate from your partner, or they stopped paying their share of the premium, as this could cause the policy to lapse.

It is worth speaking to a qualified adviser about your options for instance you might want to consider two single policies; giving your family double the cover. An adviser will be able to search the market and provide you with a policy tailored to your family’s needs. Call Asda advised life cover on 0800 9751208.

A tax free lump sum is paid out to policy holders with specified serious illnesses including certain types of cancer, heart attacks, strokes and brain tumours amongst others. It is also paid out if you die or you are diagnosed with a terminal illness.

Life expectancy rates are continually increasing and critical illness cover becomes all the more important because as we age, we are more susceptible to a range of diseases.

How does critical illness differ from life insurance?

Standard life insurance policies pay out upon death and you will not be covered for illnesses that occur during your lifetime. Putting critical illness cover in place will mean that you have full peace of mind in the event that you suffer a serious illness.

The fact that the lump sum is released when you are diagnosed means that you can fund your rehabilitation while you're sick and that your dependents won’t be negatively impacted by the potential drop in household income.

What level of cover is right for me?

Assessing the level of cover you need will depend on several factors. In the first instance it would be beneficial to approach your employers to establish the length and amount of sick pay you will already get through work. In addition, you may be entitled to other work-related benefits that mean that your cover level won’t need to be as high.

You may also need to take into account the impact of any changes to your pay as a result of your illness. If you have outstanding debts to pay or a large number of dependents, you may have to adjust your level of cover accordingly.  It’s best to speak with a qualified adviser who can help your explore your options and provide you with a policy which is tailored to your needs.

What illnesses will be covered under the policy?

The Association of British Insurers (ABI) has also outlined approximately 23 conditions that the recommend insurers should cover. This includes kidney failure, major organ transplant, Alzheimer's, multiple sclerosis, blindness and deafness. 

Is there a way that I can reduce my premiums?

Non-smokers will have lower premiums, so it will be worthwhile investigating government schemes that can help you quit the habit. Leading a healthy lifestyle will also mean that you pay cheaper premiums.
You may want to consider getting the critical illness cover together with your life insurance policy as this may be a more cost-effective option then taking out two individual policies.

What should I potentially look for when taking out critical illness cover?

• Read the terms and conditions of a policy carefully to ensure that you understand exactly what you are covered for.
• Premiums on critical illness cover can be fixed or increased every few years after a review. Fixed or guaranteed premiums may start off being higher, but may actually be more cost-effective over the term of your policy. Establish which premiums you have at the time of taking out your policy. Your adviser can guide you through the options.
• Asses your budget to see if the level of cover you have taken out and the monthly premiums you will need to pay is affordable for you. Bear in mind that you will also have to take into account your existing outgoings such as mortgage payments.
• If you have children some providers will also cover them if they become critically ill or seriously disabled.
• It may be prudent to ensure that your insurer provides you with a copy of a key features document that will detail all the key conditions of you critical illness cover.
• It could be wise to check any age restrictions on your policy. Critical illness cover normally has a term of between 1 and 40 years, though the policy normally has to come to an end on your 70th birthday.
• You may wish to check if the policy also includes cover for total and permanent disability.

I have a pre-existing medical condition, will this affect my application?

Having a ‘medical history’ or existing medical condition at the time of your application will mean that you are considered a greater risk and as a result you may have higher premiums. This will also mean than some restrictions on your cover may be imposed. It’s best to seek advice; an adviser will be able to ensure your policy is placed with the most appropriate insurer, based on your needs.

What additional benefits can life insurance offer me?

The maximum payout for life insurance can be up to double that of critical illness cover, so it may be worthwhile investigating whether you need to take out life insurance as well. The age when your cover must end is also generally higher on life insurance as opposed to critical illness cover.

Life insurance can also fall under different categories, which all serve different purposes. As an example, mortgage life insurance will pay off your mortgage in the event of your death. In May 2012, the Bank of England warned that mortgage rates are set to rise, so this type of cover could add an additional buffer.

It’s advisable to speak to a qualified adviser. They can search the market to find you the best price as well as offer you some advice to help you decide on the right policy for you and your family. Call Asda advised life cover free on 0800 9751208.

What is Income Protection Insurance?

Income protection is sometimes used as a blanket term to refer to different types of cover that will pay out if you become unable to work. These can include schemes such as Mortgage Payment Protection Insurance (MPPI) and Critical Illness Insurance (CII).

Income Protection Insurance (IPI) pays out a regular income if you become unable to work due to long-term sickness or disability. This income is tax-free and usually pays out a proportion of your salary until you reach retirement age or are able to return to work, whichever happens first.

Income Protection Insurance is sometimes also known by names such as Permanent Health Insurance or Income Replacement Insurance.

Do I need income protection?

Some employers offer generous sickness benefits that may be payable until retirement age, but these are the exception rather than the rule. Anyone unable to work due to sickness or disability will be eligible for state benefits but these may not pay enough to allow you to meet your existing financial commitments or maintain your current lifestyle.

When thinking about Income Protection Insurance, you should consider whether you would be able to meet your financial commitments if you were unable to work. Some people might consider their monthly mortgage payments might be the most important factor while others might prioritise rent, debt repayments or the disposable income required to maintain their lifestyle. If you live with a spouse or partner and both of you work, consider how you would cope with just one income.

Other types of cover

Income Protection Insurance is generally considered to be the most wide-ranging and comprehensive form of protection but other types of cover are available. These usually apply to more specific circumstances and can include...

• Mortgage Payment Protection Insurance – This covers repayments due on a mortgage if you are unable to work due to sickness, accident or unemployment. It does not cover any other bills or liabilities and usually only lasts for a set period of one or two years.
• Payment Protection Insurance – This is similar to Mortgage Payment Protection Insurance but applies to non-mortgage loans or credit card bills. This type of policy has limitations and usually pays out for  a maximum of 12 months.
• Critical Illness Insurance – This pays out a lump sum should you suffer certain medical conditions such as cancer, a heart attack or a stroke. Not all illnesses and medical conditions are covered by Critical Illness Insurance, even if they are serious enough to prevent you from working.
• Personal Accident Insurance – This pays out in the event of a physical accident. The payment is usually in the form of a lump sum. Some Personal Accident Insurance policies can also be extended to cover illnesses. This type of policy has limitations and usually pays out for  a maximum of 12 months.

Medical history and disclosure

In order to apply for Income Protection Insurance, you will typically have to answer questions about your current health and medical history. Some insurers may require you to undergo a physical examination while others may gather information via questionnaires or interviews conducted over the phone.

Some pre-existing medical conditions may exclude an applicant but you should always tell the whole truth when making an application. Non-disclosure or providing false or misleading information at the application stage could lead to your insurer refusing to pay out – perfectly validly – just when you most need the cash. In some cases it could even result in prosecution for attempted fraud.

How much will I pay?

Payments are usually made by regular premiums but there's no single 'one-size-fits-all' answer as to how much this premium will be. Factors that affect the cost include your income (and thus the size of any potential payout) and the proportion of that income that would be paid.

The nature of your occupation may affect your premium, especially if it is considered a high-risk occupation. Age and health considerations such as whether you smoke will have a bearing, as will the period of time covered. As mentioned above, Income Protection Insurance typically lasts until retirement age but this is not always the case and an individual policy could apply for any set period of time.

What if I can't do my job but I can do another?

Most income protection policies will pay out if you are unable to continue in your own occupation. You should be aware though that some policies may require you to be unable to work at all before making a payout. This may be important if you currently work in a specialised or highly paid job. If you change your occupation during the course of an income protection plan, you should inform your insurers.

Exclusions

Many income protection plans will have certain exclusions built in. This means you will not receive a payout if, for example, you become sick or disabled through misuse of alcohol or drugs, if you are injured while engaged in criminal activity or if you fail to follow medical advice.

It’s advisable to speak to a qualified adviser to help you decide what type of policy is best for you. An adviser will be able to search the market for you and find you a policy which is both competitive and tailored to your needs. They’ll be able to talk you through your options and help you make the right decision. Call Asda Advised life cover on 0800 9751208.

Purchasing a house is something we’ll always remember, along the same lines as buying our first car or having our first child.

Being a homeowner is an ambition that many of us share. But unless you’re a wealthy inheritor or have just won the lottery, you’re going to need a mortgage to get on the property ladder.

Being a mortgage holder is a big step, and therefore a big commitment. As we all know, our circumstances can change – especially over the course of a mortgage term.So if you have a mortgage, what options are available to you?

Mortgage life insurance explained

If you are a mortgage holder, one type of life cover which is available to you is mortgage life insurance. This type of policy is designed to pay out the sum of your remaining mortgage repayment debt should you pass away.

The main reason that people usually take out a policy of this type is to protect their family and loved ones from the burden of your mortgage. As any mortgage holder will tell you, a mortgage is a high-value commitment that could put a genuine strain on your family’s finances should you die.

A mortgage life insurance policy is not to be confused with other types of life cover, such as level term insurance – even though there are similarities between the two.

A mortgage life insurance policy is designated as a set number of years – usually the amount of time it takes you to pay off your mortgage. This is similar to a level term insurance policy, which is also a set number of years.

Investing in a level term policy can be a more efficient way of ensuring your loved ones are protected in the event of your death. This is because a mortgage life policy is a decreasing life insurance policy, meaning the payout goes down to reflect the level of outstanding mortgage repayments.

It is, therefore, a good idea to find out whether a level term insurance policy is in fact a better option, as level term policies pay out a set amount of money from the outset. This means that the payout could be more than that of a mortgage life policy, but of course it is worth comparing each type of policy thoroughly before making a decision.

Rather than just protect against your death, you may also want to consider a policy which protects your income.  An Income protection policy is designed to help you keep up with your mortgage repayments and other living costs in the event that you’re unable to work due to an accident or illness. The policy will pay out monthly tax free sum until you’re able to return to work or your policy ends, which ever happens first.

This type of policy should not be confused with an payment protection policy (PPI) or an accident and sickness policy(ASU) both of which pay out for a limited period only (usually 12 months) and cover isn’t as comprehensive as what an Income Protection policy offers. It’s best to seek advice before you make a decision. Your adviser will be able to search the market and provide you with options designed around your needs.

Should you take out mortgage life insurance?

Mortgage lenders will often advise you to buy mortgage life insurance, but that is usually because they provide a policy that is vastly more expensive than many other insurers out there.

It could be worth considering whether joint or couples policies are right for you. These work in the same way as an individual’s policy, but pay out on the first death. A joint policy is an attractive alternative, but is only suitable if each partner needs the same payout sum.

If you and your partner are considering investing in a joint policy, remember to consider shopping around and looking at individual policies – they can often work out cheaper.

As with any type of life insurance, it helps if you are as healthy as possible before you take out a policy. Even with a fixed term policy such as mortgage life insurance, some providers will offer you lower premiums if you lead a healthy lifestyle.

Things like smoking, diet, your occupation, and even whether you play dangerous sports can all have an effect on the amount you pay for a policy.

If you are a mortgage holder, there are a number of life insurance policies that are available – the key is finding the one that is most suitable for you and your specific needs. Speak to an adviser and they’ll guide you through your options.

If you're considering home insurance and you want to find the best policy for you, then a good understanding of different types of home insurance policy is essential.

Buildings Insurance

Buildings insurance covers permanent fixtures and structures in your home and any surrounding land you may own. This includes things like walls, roofs and windows and may also cover fixtures such as sinks, toilets and fitted kitchens. Fences, outside walls and garages may also be covered in certain cases.

When choosing a policy, it's advisable to check carefully to see exactly what fixtures and structures you are covered for to avoid running into problems. You're not legally obligated to purchase buildings insurance if you own a home, but the majority of mortgage lenders will include obtaining buildings insurance as part of the stipulations laid out in the mortgage agreement, so it's very difficult to obtain a mortgage without purchasing buildings insurance.

Most mortgage brokers will offer policies when your mortgage is being arranged. However, it's always a good idea to get several quotes from different providers before you make a decision. It is also worth noting that you should ensure that your cover meets the cost to re-build your property.

Most buildings insurance policies will guard against:

• Damage from a vehicle impact
• Fallen branches and trees
• Bad weather and storms
• Objects falling from overhead aircraft
• Damage from vandalism
• Earthquakes
• Subsidence
• Fire
• Flood and water damage

When you take out buildings insurance, the price of your policy will be determined by a number of factors. The area you live in can have a large bearing on the situation. For example, if you live in a high-risk flood area your insurance will be more expensive.

It's very important to give insurers all the correct information when purchasing a policy or your insurance could later be deemed invalid. It also helps to know what your policy will not cover you for.

The majority of policies will not protect your home against:

• Terrorism
• Pollution (this can include damage caused by living near the sea)
• War
• Aircraft pressure waves
• Radioactive contamination

However, it is possible to find specialist insurers who will offer policies that cover events such as these. Some companies will also offer more comprehensive cover for things like paying for alternative accommodation if you need to leave your home due to damage.

The excess you choose

As with any insurance policy, when you purchase home insurance you agree the excess you are willing to pay if you need to make a claim. The larger the excess you agree to is, the smaller your monthly premiums will be.

Although it can be tempting to choose the highest excess in order to reduce the cost of your policy, make sure you would actually be able to afford to make up the difference if you need to pay for repairs or replacements.

Contents Insurance

Contents insurance is not a mandatory obligation if you have a mortgage, but most home owners tend to purchase some form of contents insurance along with their buildings insurance.

If you are renting a property then buildings insurance is the responsibility of your landlord, however contents insurance is something you may wish to consider purchasing. With most homes full of expensive items like fridges, laptops and tablets, the combined value of the contents soon adds up.

A number of things can be covered by contents insurance, so it's always a good idea to check policies carefully so you know exactly which items you're insuring. Most types of contents insurance will cover:

• Electronic and entertainment equipment such as games consoles, TV's and laptops
• Large furniture like cabinets and couches
• CD's, books and clothing
• Soft furnishings like curtains and floor coverings such as carpet or lino

Many buildings/contents insurance policies will also offer insurance against loss, theft or damage to things outside your home, such as bikes or the contents of your shed. You can also purchase insurance for any valuables you may carry when away from home such as a tablet, the contents of your handbag or briefcase or the luggage you take with you are on holiday.

Standard insurers often set a limit on the amount they will insure individual items for. Many people who own expensive belongings like art work, jewellery or antiques often insure them separately. Always read the small print on any policy and make sure you know exactly what you're covered for.

Home Emergency Cover

Home emergency cover is another policy option that you may wish to consider. This can cover for issues such as roof damage that affects the general security of your home or makes it vulnerable to flooding. It can also cover you for issues such as the removal of wasp/hornet nests as well as damage to doors, locks and windows which may have an impact on the security of the house.

The Excess you choose

The excess you choose should be a manageable figure that you can afford to pay if necessary and a larger excess will reduce your premiums. You can also reduce the amount you pay each month by building up a no claims bonus so it can be wise to avoid making claims where possible and paying for any minor damage or replacements yourself.

New for old policies

Several insurers offer policies whereby if an older item is lost, stolen or damaged the company will replace it with a new one but policies that include this are usually more expensive. When purchasing contents insurance, you may wish to take a careful inventory of everything in your home and work out how much it would cost to replace each item.

Always inform your insurers of exactly what's in your home or you could be rejected if you need to make a claim, and make sure you have read your policy carefully so you know what you're covered for.

In the UK we've been free to switch energy suppliers since competition rules were introduced in 1999. The process can be much easier and quicker than many people think and you could start saving money on your gas and electricity bills right away. Energy regulator Ofgem has said that customers who don't shop around for their energy could end up paying at least £100 a year more than they need to.

Do your own research

It can be difficult to come to the right decision when being given a hard sell and without access to all the relevant information. By taking the time to look into different deals yourself you can come to the right decision and hopefully find a tariff that will genuinely save you money.

Price comparison websites

You can use a price comparison website, such as Asda Energy Compare and Save, to compare all energy suppliers. Before making a switch, check if your existing tariff requires a cancellation fee. If it does you will have to pay this along with your final bill or wait until your tariff period comes to an end.

Many consumers can feel overwhelmed by the process of calculating an energy bill and choosing the right supplier, and may wish to discuss the situation with an expert. Calling the Asda Energy Compare and Save call centre could be the answer.

Find out your usage

There are many different tariffs available. Deciding which one is right for you might depend on how much gas and electricity you use on a daily basis.

Consumption can vary greatly depending on the time of year and other factors. If you've recently had your home insulated, for example, or changed from a gas to an electric cooker, this can have a bearing on your recent energy usage. Look at your usage over an entire year or even more if you've kept the bills or have access to your records online. Bills with actual readings will give you a more accurate picture than estimates. Alternatively, you can easily obtain your annual usage from your energy supplier.

What tariffs are available?

Standard: This is generally the most expensive option available, and most suppliers will have their own specific one.

Online/paperless billing: These are generally the cheapest tariffs available on the market. You will receive your bills online rather than a paper bill. You will also manage your account online, e.g. provide accurate meter readings making sure you pay for what you use (no estimated bills). You can still call your supplier should you need to.

Discounted: Energy suppliers will sometimes offer discounted tariffs to acquire you as a customer. These are generally a few percentage points cheaper than a supplier’s standard tariff.

Fixed: Fixed price tariffs may be more expensive than other tariffs in general, but they are guaranteed not to increase or decrease during the term of the contract. There likely to be a penalty if you wish to leave before the end of the agreed term, but in an age when prices appear to be subject to regular change this may be seen as a safe option by many.

Capped: This is similar to the fixed option in most ways. However, if there is a reduction in energy costs then a capped price can potentially come down, but it will definitely not increase above the capped rate during the entire term of the contract.

Green: With this option the electricity is sourced from renewable sources such as wind power or hydro power, for example. If you also use gas, some green tariffs will also off-set your CO2 emission.

Are there any hidden charges?

Some suppliers may add a daily standing charge to your fuel bill. The presence of a standing charge may not mean a worse deal as the unit cost for gas and electricity used may be cheaper.

You should also check whether any price or rate quoted includes VAT (value added tax). VAT on gas and electricity for domestic and residential use is currently charged at the reduced VAT rate of 5%.

Most energy comparison providers will not charge you to use the service, they receive a small commission from the energy supplier for providing the service. It is also worth noting that this doesn’t affect what you pay and the tariff prices quoted on a comparison site are exactly the same as those you would find on a supplier’s site.

Methods of payment

Most suppliers offer a variety of payment methods and schedules. These may include quarterly or monthly bills that can be cash, cheque, postal order or online banking. There may also be options for prepayment meters. Suppliers will often offer a discount or special tariff for customers paying by monthly Direct Debit and for those who manage their accounts online with paperless billing. Check all the options offered by a potential new supplier in order to make the right decision for you.

If you already have a prepayment meter you will need to have it changed to a credit meter. Some suppliers may charge for this but many will do it for free as long as you pass the relevant credit checks. If you are used to using a prepayment meter you should be prepared to budget for your new method of payment.

What if I owe money to my current supplier?

If your account is in debit you may not be able to switch to a new energy supplier until you have paid your current supplier what you owe. This usually only applies if you owe the company £100 or more.

You should remember that you will still have to pay your final bill, however much you owe. If you pay by Direct Debit or Standing Order then your final bill may be more than your regular monthly payment. This is because your annual usage is averaged out for monthly payments and might not match your actual usage exactly. On the other hand, you might even find that you've overpaid and your supplier owes you some money.

Don't forget to take your own final reading when you switch suppliers, generally your new supplier will prompt you to do this and make sure it matches your final bill.

Once you have made a decision to switch, your new supplier will arrange everything else. The new supplier will send a welcome pack approximately 2 weeks into the entire switching process. This will include information on things like terms and conditions, tariff details and the expected live date.

If you own a property then your mortgage provider will require you to have buildings insurance. It can be a good idea to take out contents insurance in conjunction with your buildings insurance, but you can take out a separate policy if you wish to.

What is covered by my contents insurance?

Contents insurance covers anything that is not part of the structure of your home and can include clothing, valuables, carpets, curtains, electrical items, white goods and can even cover the contents of your freezer.

You can also pay an additional cost to cover some of your valuables when they are not in your home such as a laptop that you take to work, bicycles that are left outside, the contents of your purse, wallet or handbag, the things you keep in your garden shed and your credit cards and luggage when travelling. However, most policies will only cover the basics when travelling abroad, so it can be wise to take out traditional travel insurance for the things you plan to take on holiday with you.

If you have a wedding coming up or in the weeks immediately leading up to Christmas, some insurers will offer an automatic increase for any claim you make.

Most insurance policies will cover a basic set of eventualities but you can add extra things to your policy. For example, if you have pets you can insure against any damage they may cause. Adding extra cover to your policy will increase your premium, so think carefully about the type of cover you need.

Most contents insurance will automatically cover your possessions against damage caused by fire, flooding and earthquakes and will also protect you against vandalism and theft. Your insurer may also pay for your locks to be replaced if your house keys are stolen or lost, but this may not be included in your basic policy.

What is not covered by contents insurance?

When choosing contents insurance, it always pays to read the small print to ascertain exactly what is and isn't covered by your policy. In most cases, things like wilful damage of property, damage caused by DIY or losing an item when you are a certain distance away from your property won't be covered. If you have very expensive items such as antiques, art works or valuable jewellery, you may be required to take out extra insurance to cover these.

Do I need to pay excess on my home insurance?

Most contents insurers will require you to pay an excess on any claims that you make, but the amount you pay will vary depending on the insurer. You can also reduce the cost of your insurance by building up your no claims bonus as you do with car insurance.

What additional options can I take out with my contents insurance?

You can take out extensions on the cover you have for certain items. For example, most insurers will cover things like jewellery or DVD and CD collections up to a certain amount, but if what you have is worth more than that amount you can take out an extension to cover the balance.

Can I insure against household emergencies?

Many insurers offer policies that will pay for household emergencies and things like boiler repair, sometimes this is included in your home insurance. When you choose this type of cover you can get essential items like central heating and boilers fixed and get an emergency response for things like burst pipes, broken boilers, roof damage, broken windows or lock replacements in your home.

Can I get contents insurance if I am a student?

If you live in student accommodation then your buildings insurance will be covered by your landlord, but your contents insurance won't be. It's possible to take out your own contents insurance or add your contents to a parent’s policy to cover any expensive items you may have. It can be sensible to take out contents insurance if you live in student accommodation as your home could be at greater risk of burglary due to things like shared entrances.

Whatever type of contents insurance you choose, make sure you read all the small print and understand exactly what is covered by your insurance.

They key to solving this conundrum is to weigh up the individual needs of your pet against what is available on the market. Hopefully the following guide will help you to make a decision which is the right one for both you and your pet.

Which type of pet insurance should I choose?

Before you explore pet insurance, you need to understand your pet. Different animals and breeds are susceptible to different conditions, so if you're not sure about your pet, look for a pet advice guide online or ask your vet what medical problems your pet is likely to come up against.

Annual Cover

Annual cover will insure your pet for a year and is generally paid monthly. It's worth noting that some companies will require payment every 28 days, whilst others will require you to pay once a month. This type of insurance will cover you for a wide range of things, but if your pet is receiving ongoing treatment and your policy runs out then you won’t be able to continue to claim.

Although it's less common, it's also possible to get insurance for younger and older pets. Most companies will not insure animals under eight weeks or over eight years old. So, if you have a pet that doesn't fall within this age bracket you will need specialist insurance. Insurance for younger pets can be very useful if, for example, you own a very expensive breed of dog.

What else does pet insurance cover?

Most pet insurance policies cover a number of other things, as well as medical treatments. Some policies will allow you to claim if you need to cancel a holiday due to an ill pet. You may also be able to claim for kennels while you are away.

The majority of policies will also allow you to claim if your pet is lost and you need to advertise or offer a reward. A policy should also include third party liability so you can claim if your pet causes someone to have an accident or causes damage to property.

What is excluded from pet insurance?

In most cases, things like dental treatment, vaccinations, spaying and grooming are not included within pet insurance, so it’s best to check your policy.

The majority of basic policies will cover:

• Ear infections
• Removing swallowed objects
• Cuts and lacerations
• Lameness
• Gastroenteritis
• Tumours
• Cysts
• Bites
• Abscesses
• Road traffic accidents

Some of the added extras you can insure against are:

• Hydrotherapy
• Behavioural therapy
• Physiotherapy
• Dental work
• Treatment from a nutritionist

What if I want to take my pet abroad?

If you're visiting a country that's part of the Pet Travel Scheme you can take your pet without having to put it into quarantine, as long as you abide by the rules set out. Some companies will offer travel insurance for pets as standard, whilst others will offer it as an add-on.

How can I cut the costs of pet insurance?

The cheapest policy may not always be the best option for you and your pet, so always take time to shop around and find a policy that includes everything you need.

You can check price comparison sites to find different pet insurance deals and you'll also be able to look for specific types of pet insurance over and above basic cover.

Many insurance companies will also offer a discount if you buy your insurance online, so look for a company that does this.

Once you've decided on your insurance type, you can generally make a saving if you pay for your policy in a lump sum rather than paying in increments.

You can also save money by building up your no claims bonus, so it's always advisable to pay for smaller treatments yourself to help reduce your premiums over time.

In addition, you can make your premiums smaller by increasing the excess you're willing to pay. When you make a claim, your insurance company will pay for a certain amount and you will be required to pay the excess. Although increasing your excess can be an effective way of reducing your premiums, you must ensure that you can really afford to pay the difference if you need to.

Can I insure my kitten?

The majority of insurers will only insure a pet once it has reached eight weeks old, so you may find it difficult to insure your kitten before then.

Kittens and cats can take a lot more looking after than you may think, which means the cost of keeping them healthy can soon add up.

If you own a kitten you're under no obligation to purchase kitten insurance, but many owners choose to purchase a cat insurance policy to help pay for things like veterinary fees.

There are lots of different types of pet insurance available, so if you want the security of knowing you'll be able to afford to keep your favourite pet healthy and happy then take a look at our guide to choosing cat insurance:

What does kitten insurance cover?

Most pet insurance policies will cover a number of things, but each policy is different so always get to know your policy so that you know exactly what you can and cannot claim for. Most basic policies will insure for:

• Veterinary fees if your cat has an illness or injury
• Boarding fees or cat-sitting costs if you have to go into hospital
• A reward and advertising if your cat goes missing or is stolen
• A refund of the cost of buying your cat if it dies due to illness or injury
• A refund of the cost of buying your cat if it's lost or stolen

However, there are lots of other things you can insure against, but you will be required to pay extra for these by your insurance company. Some common extras that people choose to insure against are:

• Dental treatment
• Nutritional advice and treatment
• Behavioural treatment
• Alternative treatments like acupuncture

Any policy you consider purchasing should make clear what a basic premium covers and let you know what extras you can choose to purchase.

How do I pay for kitten insurance?

When deciding what the best way to pay for kitten insurance is, it is important to get as much information as possible from your local veterinary service.

Some insurers require monthly payments and some take payment every 28 days, so find out which method your insurance company uses as your premiums could end up costing more than you expected.

One of the main drawbacks of annual cover is that if your cat is receiving ongoing treatment and your policy runs out, you'll no longer be able to make a claim.

When you purchase a kitten, make sure you ask your vet for kitten advice to find out if the breed you've chosen is likely to suffer from any congenital or progressive conditions so you know which specific conditions you may want to insure for.

Will I need to pay an excess?

All insurers will require you to pay an excess when any treatment is carried out. This is normally around £50, but you can choose to increase your excess to reduce your premiums just as you can with any type of insurance.

Increasing your excess can dramatically reduce the cost of your premiums, but make sure you are able to afford the extra expense or you could find yourself in a situation where you can't afford to pay for treatment.

How can I find the right kitten insurance for me?

These days, most people turn to the internet when searching for insurance and it can be a very useful resource for learning about what's out there.

You can use price comparison sites to find lots of different deals quickly and you'll also be able to narrow down your search to look for companies that offer the things you need.

You can also ask your vet for advice about specialist kitten insurance or ask friends and family which type of policy they have. Gathering as much information as possible in this manner will help you to make an informed decision which is the right one for both you and your kitten.

What does buildings insurance cover?

Buildings insurance covers damage or destruction caused to the structure of your house. Some buildings insurance policies also cover permanent fixtures in your home such as fitted bathrooms, fitted kitchens and built-in cupboards. Outbuildings such as sheds and greenhouses may also be covered, depending on the individual policy.

Policies usually cover damage caused by a set list of circumstances and eventualities. These usually include such things as: Fire, storm and flood, lightning, explosion and earthquake, subsidence, heave and landslip, riot and vandalism, theft, falling trees and impact by animals and vehicles.

Some buildings insurance policies may also include a level of liability for injury to individuals or damage to their property and the cost of accommodation should you need to leave your home while repairs are carried out.

Damage due to wear and tear is not usually included and most policies also have other exclusions built in.

What are exclusions and extensions?

Exclusions are situations or circumstances that are not covered by the buildings insurance. Common exclusions can include losses arising from war, acts of terrorism, frost damage to outside pipes, damage from aircraft pressure waves and radioactive contamination from nuclear fuel or waste.

There may also be further specific exclusions depending on the policy. These could range from something like storm damage to fences or there could be a clause invalidating the cover if the building is left unoccupied for a specified number of days per year. Some policies also exclude damage caused when carrying out DIY. As with any insurance policy, the details in the small print are extremely important.

Extensions are the extra areas of cover that can be added to your policy. Many insurers will be happy to discuss any individual needs that are not covered in a standard policy.

Buildings insurance policies normally also have an excess. This is the amount of any individual claim that you have to pay yourself. This could be, for example, the first £100 of each claim but the excess may be higher for certain circumstances such as damage caused by subsidence, heave and landslip.

What's the difference between buildings insurance and contents insurance?

Buildings insurance typically covers the permanent structures and sometimes the permanent fixtures of the building. Contents insurance covers the contents of your home – anything from electrical equipment to furniture to personal items and belongings. Contents insurance typically covers the contents against most of the same risks as buildings insurance (such as fire, flood and earthquake) as well as theft and sometimes accidental damage.

Depending on any extensions or extra cover built into your buildings insurance, there may be a certain amount of overlap between buildings and content cover.

Is buildings insurance compulsory?

Buildings insurance is not compulsory, but most lenders will insist you have adequate cover in place before agreeing a mortgage. Some lenders may offer buildings insurance alongside a mortgage, but you are not obliged to take a particular policy as long as you have adequate cover. Many home buyers prefer to shop around to find the best policy for them.

Tenants do not usually need buildings insurance as this is the landlord's responsibility. Some landlords may insist that a tenant takes out tenant's liability insurance, however, which covers for damage caused to the property by the tenant. Many tenants will also take out their own contents insurance.

What precautions should I take?

Policyholders are generally required to mitigate their losses by taking action to prevent or minimise damage. In practical terms, this may involve such things as informing your insurers as soon as you spot structural damage or signs of subsidence, so that the situation can be assessed and dealt with as soon as possible.

If your house is used for business purposes the insurer may consider this an extra risk when calculating your premium, especially if you keep certain types of equipment or materials on the premises.

How much is insured?

It's important to note that buildings insurance is usually supposed to cover the cost of completely rebuilding your house. This is not necessarily the same as the market value of the house.

Some insurers offer unlimited cover, which means the full costs of rebuilding your house will be met should the worst happen. Others will cover a set amount based on an estimate for the cost of rebuilding. This will take into account the size, type and age of the house, as well as the area in which it is situated. You can have an individual assessment carried out yourself by a chartered surveyor or do a calculation yourself based on a standard property of a given type.

Can I build up a no claims discount?

Some policies allow you to build up a no claims discount, also known as a no claims bonus, in much the same way as you can for car insurance. This is a discount applied to your premium that builds up to a maximum amount if you don't make a claim for a set period of time.

Tips for your moving day

As soon as contracts have been exchanged you should decide on your moving date. Most people choose to move on their completion date, but if you want to move after this date, there’s no reason why you can’t negotiate with whomever you’re buying your house from.

Avoid bank holidays, weekends and Fridays, when removal firms tend to be at their busiest and can charge a premium for their time. Choose an off peak time such as the middle of the week instead.

Make sure you feel confident about the removals company you choose. You can either ask friends and family for recommendations or consult the national Guild of Removers and Storers (NGRS) or the British Association of Removers (BAR) to find reliable firms in your area.

Who to tell if you’re moving

When you move there are various people that you need to keep informed. Make sure you let all of the following people know before you move:

• Your TV license doesn’t move with you so you need to inform the TV Licensing company of your new address. You can do this by calling them directly or online
• Make sure you inform your building society, bank and pension provider if you have one. You should also tell any company that you’ve taken out a loan with and make sure to change your address on any store cards you have
• Inform the Inland Revenue and your local council so that council tax bills can be sent to the right address
• If you have any subscriptions then make sure you inform the companies you are subscribing with
• You should always give your employers your new address before you move
• If you have children make sure their schools know your new address too
• You will also need to update your driving licence and vehicle registration to include your new address
• Inform your gas and electricity company of the day you are moving to ensure you don’t end up getting charged for power you’re not using
• You will need to set up insurance on your new property as well as informing providers of your new address for any existing policies that you have in place

Packing Tips

Having to pack up your belongings can often be the most stressful and time consuming part of a move, but if you keep organised and give yourself plenty of time then you can take the stress out of packing.

Decluttering

Before you pack anything make sure you take time to clear your home of any items you no longer need or want. Decluttering is a great way to reduce the amount of packing you need to do and will help you feel more organised when you move into your new home. You can start decluttering well before your move, so when the big day arrives you’ll be ready to go.

Sort through all your possessions and split them into the things you want to keep, things you can sell, things for charity and things to throw away.

Once you begin decluttering your home you’ll be amazed at just how much you can get rid of. Decluttering will also mean you’ll be able to start life in your new home feeling free and unburdened.

Packing

Make sure that you have plenty of strong boxes, tape and protective packaging like bubble wrap before you start packing and always include more than you’ll think you need to cover contingencies. That way you won’t get left in the lurch when you suddenly realise you’ve run out of boxes.

You can start your major packing a week or more before you move if you’re careful about what you pack. Look for items that aren’t in everyday use such as ornaments, crockery and books and get them packed away. That way you will only need to pack the essentials on the night before or the day of your move which will be far easier and less time consuming than packing everything at once.

Preparing for your moving day

Before you move, make sure that your possessions are properly insured. Most removal companies will provide some form of insurance but there may be exclusions, such as antiques or valuable art, so find out what’s covered before your moving day.

If possible, arrange for young children and pets to be looked after on the day of your move as you will need to concentrate all of your efforts on moving. This can be very difficult with children and pets in tow.

When moving into a new home, one thing that can really help is if the previous owners have left instructions for all the essentials such as when rubbish is collected, if there is recycling in the street and instructions on how to work boilers, turn water off and on and any other information that may be useful. If you can find the time to do this for the new owners of your home it will be much appreciated.

Make sure you’ve gathered all the keys to your property including any spare keys that have been left with family or neighbours and hand them over to your estate agent.

Finally, create an inventory of everything that is moving, inform the Post Office so that your mail can be redirected and cancel newspaper and milk deliveries if you have them.

If you stick to the checklist and give yourself plenty of time you can make moving easy and stress free so you arrive in your new home refreshed and ready to start your new life.

If you’re thinking of getting into DIY then it’s essential that you have the right tools in your DIY kit. Read on to find out which tools you need to get started on your DIY project.

The basic tool kit

First and foremost you’ll need somewhere to store your tools. Don’t be tempted to shove all your tools into a bag, it’s much better to keep them organised with a proper tool box. T

here are lots of different tool boxes available but make sure you choose one with plenty of storage compartments so that you can separate all your tools and find them easily when you need them. Once your tool box is ready you can start collecting the essential tools you need.

Claw hammer

A good quality claw hammer is essential for driving in or removing nails. A light-weight claw hammer will work for most jobs and will be easier to use than a heavier model.

Cordless drill

Electric drills make life so much easier for DIY enthusiasts because they take the physical effort out of drilling holes and putting screws in place.

Cordless drills are more expensive than electric drills with cords but they are a lot easier to use and can help with any number of jobs, including driving screws and stirring paint or sand. Opt for a drill with an 8.5 volt battery and keep a spare battery to hand so you won’t have to stop in the middle of a job to recharge.

Screwdrivers

Without screwdrivers, many DIY tasks are practically impossible. You will need at least two screwdrivers, one with a long handle and one with a short handle. You’ll also need a flat head and a slotted head or Phillips head screwdriver for different types of screws. It’s possible to buy screwdrivers with interchanging heads but make sure if you choose this option that you pick a good quality tool that secures different screw heads efficiently.

Allen key

An Allen key is an L shaped tool that can be used to tighten bolts. Allen keys are useful for things like tightening towel bars, tap handles and for putting together flat pack furniture.

Pliers

Many DIY enthusiasts make the mistake of overfilling their tool boxes with different versions of the same tool, but you can do most jobs with one pair of self-adjusting pliers. Pliers can be used to remove nails, tighten nuts and bolts or for clamping.

Hand Saw

If you’ve got a huge woodworking project planned then an electric power saw will probably be a better option for you, but for odd jobs a hand saw is fine. Choose a crosscut saw that’s at least 22 inches to get the most use out of it.

Tape Measure

A tape measure is an absolute essential as DIY is all about accurate measuring. Choose a push pull tape measure that retracts automatically for ease of use.

Spirit Level

If you want to ensure that your DIY measurements are as accurate as possible you can use a spirit level, which are around 9 inches long and contain a vial of liquid with an air bubble that you can use to make sure your lines are straight. Many professionals now use laser levels instead of spirit levels so if you plan to take on several jobs it may be worth investing in one of these.

Bits and Bobs

One of the most irritating things about doing DIY is running out of the things you need, or simply not having them in the first place. As well as your essential tools, make sure your tool kit is stocked with a few other essentials so you don’t end up having to make a trip to the DIY store at an inopportune moment.

Include a selection of different sized nails and screws, wood glue, nail glue, masking tape and rawlplugs so you have everything you need to complete a DIY job.

Planning

Before you start on any DIY job make sure you plan what you are going to do carefully. If the job involves a skill you haven’t used before then take the time to practise and learn the skill before you start. This will ensure that you don’t end up making mistakes that you could have avoided.

If you’re not sure where to start with a job try looking for tuition videos online that can take you through a job step by step or find a book which covers the most common DIY tasks.

If you decide you want to take on more complex tasks such as plastering, then consider taking a course to get your skills up to scratch. It is also worth checking your home insurance policy before taking on any tasks such as those mentioned above.

There are certain jobs within the home that need to be carried out by a fully qualified professional, such as rewiring. If you’re unsure, find out if you’re legally allowed to carry out a job before you start.

However, there are plenty of things that you can do to keep the cost of your insurance down. Take a look at our guide to finding cheap home insurance to ensure that you get the most for your money.

Do I need buildings and contents insurance?

In the UK there is no legal requirement for you to have any type of home insurance. However, the majority of mortgage providers will insist that you have buildings insurance before they agree to give you a loan. The chances are that if you have a mortgage on your home you will have to purchase some form of home insurance.

The two main types of home insurance are buildings insurance and contents insurance. Buildings insurance will cover the structure of your home, including walls, your roof and windows; whereas contents insurance will cover the belongings you have within your home.

Whether you want to get both types of insurance really depends on whether you would want to claim for any of your belongings if they were lost, stolen or damaged.

Many people don’t realise that they have thousands of pounds tied up in the possessions they own and it’s only when the worst happens and possessions are lost that they realise just how much money they have lost as well.

Contents insurance can cover things like electrical items, computers, clothes, soft furnishings and even the contents of your freezer, so if you want to protect these kinds of items then you will need contents insurance.

Contents insurance is not necessarily something that people immediately consider when they move into a property. However, over the course of our lifetime we will accumulate a vast amount of possessions and it is once this occurs that we will realise the true value of such a policy.

How much should I spend on buildings insurance?

In general, any insurance premium you purchase should be enough to cover the cost of rebuilding your home if it was completely destroyed. This figure will of course vary depending on the value of your home.

You can find out the estimated cost of rebuild, which is often lower than the value of your home, on your mortgage agreement. Or you can look for an insurer that provides an online calculator to help you work out the costs yourself.

Should I choose unlimited cover?

Some insurers will offer unlimited cover which means they’ll pay out no matter what the cost. However, this type of insurance comes at a premium so if you want the cheapest option it may not be the best choice.

It’s also recommended to re-evaluate how much your home is worth on a regular basis to ensure that you are not paying too much or too little for your insurance premiums.

How do I calculate my contents insurance?

In general, contents insurance will guard your goods against theft, loss or damage caused by flooding, fire, storms, leaks, explosions and earthquakes. It’s always a good idea to check the small print of your contents insurance thoroughly as you could find you are paying for protection against all sorts of things that are very unlikely to occur, such as forest fires.

To calculate the value of the contents of your home accurately make an inventory of all your possessions, including things like white goods, furniture, clothing and jewellery. Also include any goods you have stored in your attic, shed or garage (apart from your car) and carpets and curtains.

Once you’ve made an inventory of everything you’ve got you’ll be able to give your insurer an accurate figure for the contents of your home, which means if you do need to make a claim you’ll know that all your possessions have been covered.

Most insurers will place a limit on the amount they will pay out for single items so find out what this is and if you have possessions that are worth more then it could be a good idea to insure them separately.

If you're considering home insurance and you want to find the best policy for you, then a good understanding of different types of home insurance policy is essential.

Buildings Insurance

Buildings insurance covers permanent fixtures and structures in your home and any surrounding land you may own. This includes things like walls, roofs and windows and may also cover fixtures such as sinks, toilets and fitted kitchens. Fences, outside walls and garages may also be covered in certain cases.

When choosing a policy, it's advisable to check carefully to see exactly what fixtures and structures you are covered for to avoid running into problems. You're not legally obligated to purchase buildings insurance if you own a home, but the majority of mortgage lenders will include obtaining buildings insurance as part of the stipulations laid out in the mortgage agreement, so it's very difficult to obtain a mortgage without purchasing buildings insurance.

Most mortgage brokers will offer policies when your mortgage is being arranged. However, it's always a good idea to get several quotes from different providers before you make a decision. It is also worth noting that you should ensure that your cover meets the cost to re-build your property.

Most buildings insurance policies will guard against:

• Damage from a vehicle impact
• Fallen branches and trees
• Bad weather and storms
• Objects falling from overhead aircraft
• Damage from vandalism
• Earthquakes
• Subsidence
• Fire
• Flood and water damage

When you take out buildings insurance, the price of your policy will be determined by a number of factors. The area you live in can have a large bearing on the situation. For example, if you live in a high-risk flood area your insurance will be more expensive.

It's very important to give insurers all the correct information when purchasing a policy or your insurance could later be deemed invalid. It also helps to know what your policy will not cover you for.

The majority of policies will not protect your home against:

• Terrorism
• Pollution (this can include damage caused by living near the sea)
• War
• Aircraft pressure waves
• Radioactive contamination

However, it is possible to find specialist insurers who will offer policies that cover events such as these. Some companies will also offer more comprehensive cover for things like paying for alternative accommodation if you need to leave your home due to damage.

The excess you choose

As with any insurance policy, when you purchase home insurance you agree the excess you are willing to pay if you need to make a claim. The larger the excess you agree to is, the smaller your monthly premiums will be.

Although it can be tempting to choose the highest excess in order to reduce the cost of your policy, make sure you would actually be able to afford to make up the difference if you need to pay for repairs or replacements.

Contents Insurance

Contents insurance is not a mandatory obligation if you have a mortgage, but most home owners tend to purchase some form of contents insurance along with their buildings insurance.

If you are renting a property then buildings insurance is the responsibility of your landlord, however contents insurance is something you may wish to consider purchasing. With most homes full of expensive items like fridges, laptops and tablets, the combined value of the contents soon adds up.

A number of things can be covered by contents insurance, so it's always a good idea to check policies carefully so you know exactly which items you're insuring. Most types of contents insurance will cover:

• Electronic and entertainment equipment such as games consoles, TV's and laptops
• Large furniture like cabinets and couches
• CD's, books and clothing
• Soft furnishings like curtains and floor coverings such as carpet or lino

Many buildings/contents insurance policies will also offer insurance against loss, theft or damage to things outside your home, such as bikes or the contents of your shed. You can also purchase insurance for any valuables you may carry when away from home such as a tablet, the contents of your handbag or briefcase or the luggage you take with you are on holiday.

Standard insurers often set a limit on the amount they will insure individual items for. Many people who own expensive belongings like art work, jewellery or antiques often insure them separately. Always read the small print on any policy and make sure you know exactly what you're covered for.

Home Emergency Cover

Home emergency cover is another policy option that you may wish to consider. This can cover for issues such as roof damage that affects the general security of your home or makes it vulnerable to flooding. It can also cover you for issues such as the removal of wasp/hornet nests as well as damage to doors, locks and windows which may have an impact on the security of the house.

The Excess you choose

The excess you choose should be a manageable figure that you can afford to pay if necessary and a larger excess will reduce your premiums. You can also reduce the amount you pay each month by building up a no claims bonus so it can be wise to avoid making claims where possible and paying for any minor damage or replacements yourself.

New for old policies

Several insurers offer policies whereby if an older item is lost, stolen or damaged the company will replace it with a new one but policies that include this are usually more expensive. When purchasing contents insurance, you may wish to take a careful inventory of everything in your home and work out how much it would cost to replace each item.

Always inform your insurers of exactly what's in your home or you could be rejected if you need to make a claim, and make sure you have read your policy carefully so you know what you're covered for.

But if you know how, you can compare electricity prices quickly and easily and ensure that you're not losing out. Read our guide to comparing electricity prices and learn everything you need to know to get great electricity deals and save money.

How to use energy comparison sites

A good electricity comparison site will make it easy for users to find what they need. To find the best quotes, you'll need to enter all the information you're asked for as accurately as possible.

When you narrow down your search as much as possible the quotes returned will be suited to your particular needs.

Compare prices regularly

Electricity companies are constantly changing their tariffs which means the deal you had a year ago may have gone up in price or that their may be cheaper deals that weren't available when you signed up with your electricity company.

To get the most out of your electricity bill check comparison sites once every six to nine months to make sure you are aware of any changes to tariffs or special offers.

In some cases energy companies will introduce cheaper tariffs for new customers but they won’t pass on the savings to existing clients. Checking comparison sites will allow you to monitor changes taking place with your current provider.

Cheaper is not necessarily better

When you view a list of quotes in price order it can be tempting to choose the cheapest option, but when using comparison sites it's vitally important to find out exactly what is included in any quote as you may find that a cheaper tariff doesn't provide you with everything you need.

Bear in mind that although comparison sites are regulated some are sponsored by individual companies so may not present wholly unbiased information.

Choosing the best electricity deal

When choosing a supplier take into account how you want to pay and get your bills. Many suppliers offer discounts for buying online and will offer further money off if you manage your account online too. Make sure you take full advantage of any offers like this when finding a supplier.

You can also save money by choosing a fixed energy tariff which works in much the same way as a fixed mortgage rate. This means the cost of your electricity bills will be fixed at a certain amount until a specified date.

Although customers who choose this option will pay a premium it's possible to make significant savings if energy prices rise.

However, it's not advisable to choose a fixed tariff if energy prices are dropping as you could end up paying more than the average.

Keeping your tariff low

Once you've chosen your energy supplier there are things you can do to ensure you don't get into debt and maintain manageable energy bills. It can be easy to find yourself running up a debt. Often when customers pay by direct debit their monthly bill may rise but their direct debit amount will stay the same so you end up owing the energy company money.

Check your direct debit regularly and make sure it is in line with the price of the energy you are using. If you find you are paying too much or too little then contact your energy supplier and explain that you want to change your debit amount.

You can also run into trouble if you don't read your meter regularly as the energy company will calculate an estimated reading which may be less than your annual consumption, so you will end up having to make up the difference.

Most energy companies now allow you to input the information from your meter reading online so you get the most accurate bill possible and you won't end up over or under paying.

The most effective way to keep your bills manageable is to monitor the amount of energy you use. It's now possible to buy energy monitors which will show you how much you are spending each time you use power.

When you can see how much using your hairdryer, leaving lights on unnecessarily or running the washing machine is costing you, you're much more likely to think about whether you really need to use that energy.

This guide will tell you exactly what you need to do to save money on your gas bills so read on to find out how to compare prices and get the best deal on gas.

Before you start your search

There are a few things you need to know before you start your search to make sure any information you need to give is as accurate as possible.

Firstly make sure you have the details of your current supplier to hand, along with your postcode. Secondly find out exactly how much you are paying for your gas each year and consider the payment method you use.

To find out how much you are paying for gas every year you can either check your online or paper bills and calculate what your annual spend is, or you can contact your supplier directly and ask them to review your bills. Once you have gathered all this information you are ready to start your search.

Using comparison sites

Comparison sites are fast becoming the most popular way to search for services online and they can be very handy if used correctly.

When you visit a comparison site you'll be asked for information that's relevant to your search such as your current supplier, where you live and how much gas you use every year. Provided your answers are as accurate as possible the site should come up with a comprehensive list of quotes from alternative suppliers.

Once you have your list of quotes, don’t be tempted to automatically go for the cheapest option. Before you make a decision you need to find out exactly what is included in the tariff being offered and make sure that it meets your needs.

It's advisable to use a comparison site that covers the whole UK market

Buying online

As well as using the internet to find the best deals, you can also save money if you choose to pay for your supply online. Many companies also offer a discount if you manage your account on the web too.

Managing your account online is often quicker and easier than receiving paper bills and much cheaper for companies to process, meaning they can pass that saving on to you.

Most people choose to pay their gas bill by direct debit but as gas prices rise and fall regularly you may end up owing your supplier more than the amount of the direct debit you have set up.

Monitor your gas usage to make sure you're not over or under paying for your gas if you plan to pay by direct debit.

Fixed Tariffs

Many providers offer fixed tariffs for gas supply so you pay a fixed amount for a year. This means that if gas prices rise you won't pay more, but if prices drop whilst you're on a fixed tariff you can end up paying over the odds.

If you sign up for a fixed tariff and you decide to switch to another supplier your current company is likely to charge you to get out of your contract.

Regular check ups

If you want to make the most of comparison sites then check them every 6 to 9 months. Energy tariffs are constantly changing and the only way to take full advantage is to make sure you're not missing out.

You can change gas providers as many times as you want to, although some companies will charge a penalty if you do this once you have signed a contract.

In general it can take from between four and six weeks for any changes to come into effect, so make sure you don't end your contract with your current provider before your new one has started.

Save energy

One of the most effective ways to save money on your gas bill is by saving energy in your home. The more energy efficient your home is the less gas you will need to use. So make sure that your home is well insulated to keep the heat in. You can apply for a grant to improve your home's insulation so check online to see if you qualify.

You can also monitor the amount of gas you use with an energy meter which will show you how much you're spending on gas. Getting an energy monitor will really help you think twice about the amount of gas you use and you're much more likely to think twice about whether you need to use your current levels of energy.

Take a look at our guide to energy tariffs to get you in the know, so you can choose the right energy provider and find the best deals.

Dual Fuel

With this type of tariff, both your gas and electricity come from the same supplier. Some companies will offer discounts to customers who choose a dual fuel tariff and it can be simpler that choosing two different providers.

Fixed tariffs

In much the same way as a fixed rate mortgage, with a fixed tariff you'll pay a specified amount for your energy supply, usually for a year. This means that if energy prices go up whilst you are on a fixed rate, you won't have to pay more. However, this also works in reverse if energy prices go down and you could end up paying over the odds.

Fixed tariffs can cost up to 20% more than standard prices but as energy prices seem to be constantly on the rise it can be an effective way to save.

Online energy

Many suppliers offer discounts to customers who choose to manage their account online. This is because it's easier and cheaper for them to process information online.

When you manage online you can review your account any time you want to and it can often be easier to keep track of deals and offers if your account is online.

Economy 7

Economy 7 tariffs offer cheaper electricity at night, which can often benefit homes that use storage heaters or people who want to carry out household tasks such as running their washing machine and dishwasher at night.

Households that use Economy 7 have special meters fitted that take separate readings at night in order to calculate your usage. If you want to switch to Economy 7 you should be able to do so through your present supplier, but you may need to pay to have a meter installed.

Economy 10

Economy ten offers cheaper rates during off peak times during the day and night. The price of off peak energy can be half that of peak times, but you may be charged an increased standing charge which you pay every day.

As with Economy 7, if you want to switch to Economy 10 you'll need to contact your current supplier and have a meter installed.

Social Energy

All energy providers are obligated to offer cheaper supply to those in need. This must cost the same as the lowest standard tariff offered by the supplier. If more than 10% of the total income of your household is spent on energy bills you may be eligible for a social energy tariff. To find out how much you are spending each year on energy you can check your bills or call your supplier directly.

Prepayment meters

Prepayment meters allow customers to pay for energy in advance and top up their energy supply when they need to. You can top up a pre paid meter with a key, token or card and can top up your supply over the counter at many convenience stores.

It's widely acknowledged that using a meter is one of the most expensive ways to pay for energy, but many people find that using a meter allows them to manage their finances more successfully.

Green Energy

Most people would make the assumption that when you sign up for a green energy tariff, at least part of your supply will come from renewable energy sources, but this isn’t the case.

Although energy companies do have to use a proportion of the money you spend to fund green projects, there's no obligation for them to use renewable energy.

However, if you choose this method a percentage of the money you spend will be donated to green charities or help fund eco projects.

Feed in tariffs

Some suppliers now offer cash payments to homes that use renewable energy such as solar panels. If you produce your own energy you can in effect sell it back to the grid.

Many local councils offer incentives to residents who want to use renewable energy in their homes and you can apply for grants to fit solar panels or help pay for a wind turbine.

In many cases households that use renewable energy can end up making a profit from the electricity they use rather than paying for a supply from an electricity provider.

If you want to find out if you would be eligible for a grant then contact your local council or look online.

IGT (Independent Gas Transporter) Tariffs

Not all gas is delivered to homes by the national grid; some is delivered by an International Gas Transporter.

To find out if your gas is delivered by an IGT you can check your meter point reference number. This is a ten digit number on your meter. If the first number is between 74 and 77 then your gas is being supplied by an IGT.

For that reason the popularity and prevalence of renewable energy has been steadily rising on a domestic, national and worldwide scale.

In recent years new objectives have been put in place which outline the government’s goal to produce 15% of the country's energy from renewable sources by 2020. This may seem like a small percentage but when you consider that the total usage across the UK in 2009 was just 3%, it's easy to see why it may be a hard target to reach.

What is green energy?

The term 'green energy' is most commonly used to describe energy that is produced from renewable sources. Using green energy differs from using fossil fuels because the sources needed to make energy will never run out, unlike things such as oil and coal.

The four main types of renewable energy that are being developed in the UK are solar energy, hydroelectricity, wind power and biomass energy.

Solar energy

Man has been utilising the power of the sun for thousands of years but it's only recently that the popularity of solar power has really taken hold.

Thousands of households in the UK are now fitted with solar panels, which use photovoltaic cells to convert sunlight into electricity. Some UK councils offer grants for fitting solar panels and it's also possible to sell any excess power produced back to the grid.

Wind Energy

The UK's wind farms are Europe's largest source of renewable energy, utilising turbines to produce electricity. Wind farms can be inland or offshore and can also be fitted to homes and businesses on a smaller scale.

Some people who live close to wind farms claim they produce an irritating humming noise and many people complain that the giant turbines are an eyesore on the horizon, but there's no denying that they are a powerful source of green energy.

Hydroelectricity

Hydroelectricity uses moving water to create energy. Hydroelectricity can be created using different bodies of water such as the sea, rivers and lakes. It is even possible to create hydroelectricity on a smaller scale if you live near a water source.

In many cases a small scale hydroelectric device can produce enough power to run lighting and electrical items in a home.

Biomass energy

Biomass energy has caused controversy because it creates power by burning natural materials, which seems like it would be bad for the environment, but the materials burned are crops that take CO2 out of the atmosphere whilst they are growing, which means that burning them becomes carbon neutral.

How can I utilise green energy?

When you use green energy to power your home you reduce your carbon footprint because creating the energy you need will produce less CO2. However, you can also reduce your carbon footprint by using less energy in your home.

There are lots of things you can do to make your home more environmentally friendly and one of the most important is making sure you have adequate insulation. Improving loft and wall cavity insulation is a must if you want to save energy – your home can lose up to 40% of its heat from a poorly insulated roof and up to 20% from badly insulated walls which can make a huge difference to your energy bills.

Installing double glazing can also make a big difference to the amount of heat you lose from your home and you'll soon earn back the initial expense in the money you save on energy bills.

When it comes to saving energy, little changes can make a big difference. Try reducing your thermostat by a few degrees, you won't notice the change in temperature but you will notice savings on your bill.

Make sure you switch off lights and don't leave appliances on standby. You can also switch to energy saving light bulbs and opt for the eco wash setting on your washing machine and dishwasher.

Green energy tariffs

Many energy providers are now offering green energy tariffs which use a percentage of the money you pay to fund eco projects around the world.

You can also find specialist green energy companies who generally supply power from renewable sources but they may also use power from the national grid.

However not all green energy tariffs use energy from renewable sources so if you want this to be part of your tariff make sure the company you choose uses green energy.

It should also be possible to find out which projects are being supported by the company you choose so you can get a better idea of where your money is going.

Most good energy companies will be able to offer you comprehensive advice about how to save energy and using green energy. If you're thinking of installing solar panels in your home or you want to improve your insulation then contact your energy provider to find out if you qualify for a grant.

If you want to improve your home’s energy efficiency then read our handy energy saving tips and start making changes to your home today.

Draught excluding

There are numerous changes that you can make in your home to save energy, but draught exclusion is one of the simplest and most effective.

To make sure your home is draught-free it is a good idea to check all your windows and doors. If you’re not sure if a door or window is draughty then get a piece of toilet tissue and hold it at various places around the perimeter of your doors and windows. If you have cold air coming through the toilet tissue will move.

Once you’ve found out where the draughts in your home are located you can use draught excluders at the bottom of doors and place rubber seals around windows that will stop cold air from getting in.
Draught exclusion can cost absolutely nothing if you’re willing to make a draught excluder yourself, or you can hire a professional to do it, which normally won’t cost more than £200.

You can save significantly on your energy bills if you improve draught exclusion and your home’s CO2 emissions will also be greatly reduced.

Insulation

There are three main types of insulation that can make a significant difference to the warmth of your home. These are loft insulation, cavity wall insulation and solid wall insulation.

Experts agree that effective loft insulation needs to be about 6” thick, so if yours is less than this you should consider replacing or removing it. Laying loft insulation is a fairly simple job that you can do yourself, or if you choose to hire a professional it should cost between £200 and £300.

Cavity wall insulation is more complicated and needs to be done by a qualified person. Many homes have cavities in their walls which should be filled with insulation. Over time this insulation can degrade or, if the home is older, the insulation may not be up to modern standards. Having your cavity walls insulated will cost around £300 and can improve your home’s efficiency by up to 20%.

If your walls are solid it’s still possible to improve insulation by adding insulation plaster board to the inside of your walls or thermal wall lining under plaster.

Solid wall insulation can be time consuming and it’s best to carry it out when decorating. Be aware that when you add insulating plaster board your walls will be thicker so window sills and plug sockets may also need to be altered.

Thermal wall lining can be papered onto a wall and plaster can be laid over the top. This type of insulation is very effective but can make walls feel spongy which means they’ll be more sensitive to any impact. Improving insulation around your home can reduce CO2 emissions by more than two tonnes every year and can save more than £500 per year on energy bills.

Double Glazing

Much of your home’s heat can be lost through the windows if you don’t have double or triple glazing. However, changing windows is a big expense and probably not the most cost effective solution if you want to save energy.

If you don’t want the expense of changing your windows you can consider secondary glazing, which is significantly cheaper but can be just as effective. There are lots of different types of secondary glazing that you can fit yourself, such as heat sealed film and Perspex panels. Secondary glazing is the most cost effective option and perfect for listed homes where windows aren’t able to be changed.

Appliances

Making small changes to the way you use appliances around the home can make a huge difference to your energy bills and your carbon footprint.

Firstly, when buying a new appliance, it may be wise to try to choose one that has an A* energy rating. This means that it has been built to modern regulations and is already as energy efficient as possible.

Any appliance that cools things down or heats them up will use a lot of energy, so making sure that your oven seals are in good order and trying to avoid opening the oven door when you’re using it may be good ideas.

Check that your fridge temperature isn’t too cold as if it is you will be using more energy than necessary. If your fridge or freezer is packed full of food then it will take more energy to keep it cool, many people leave a third of the space in their fridge or freezer free to avoid this.

If you want to change supplier, reduce your energy bills or if you are organising your home’s gas and electricity for the first time then read our handy guide to ensure that you make the best choice:

Energy Bills

Most households spend a large proportion of their budget on energy bills, but most don’t really know exactly what they are paying for. However, Asda Finance recently uncovered that 82% of UK households feel that energy bills need to fall by an average of £39 a month (£468 a year) in order for them to be deemed affordable.

To be really energy smart, you need to understand your bill and get a better idea of what you’re spending and how you can make savings.

Energy Usage

Your energy usage is calculated in kilowatt hours (kW/h). Your electricity meter will show the number of kW/h you are using, whereas your gas meter will show your usage in cubic feet or cubic metres and the gas company will then convert this into kW/h.

If you don’t have a standing charge then you’re likely to pay for your energy using a two-tier system. This means you’ll pay more for the first units of energy you use.

Standing Charges

Most energy suppliers will charge a fixed daily fee when you connect to their energy supply and you’ll also pay for the units of energy you use. In general, companies that don’t require a daily fixed fee will charge more per unit of energy.

Dual Fuel

If you have both gas and electricity within your home then a dual fuel plan can save you money. Many energy companies will offer a discount if you get your gas and your electricity from them. It can also make the process of paying bills less complicated.

Price Plans

There are lots of different price plans available, so you’re able to choose the one that suits your specific needs. The most widely used price plans are:

Standard Plan - When you’re organising your energy supply, if you don’t choose a price plan option you’ll automatically be placed on a standard price plan. This means that your prices will be calculated in line with the current energy costs, so if prices rise, you’ll pay more.

Fixed Price - If you choose a fixed price plan you’ll pay the same amount each month, whether prices rise or fall. This means you’ll save money when prices are high, but if they drop you could lose out.

Fixed price plans normally last for a year and if you don’t request renewal you’ll be automatically put back on a standard price plan. When you choose a fixed price plan you’ll sign a contract, so if you want to change supplier before the plan finishes you may be charged to leave.

Capped Price Plan - When you choose a capped price plan the amount you pay for energy bills can vary, but is capped at a specified amount. This type of plan can offer more flexibility because you won’t pay more than the cap but you could make savings if prices drop.

Economy 7 - In a similar way to phones, you’re charged more for using energy at peak times and less for off-peak times, such as during the night. An Economy 7 plan can help you save money when using energy at night, but it’s only effective if you use at least 20% of your energy between 1am and 8am.

Green Energy Plan - Green energy plans work by offsetting your carbon footprint by using a proportion of the money you pay for energy to fund eco projects. This can be things like reforestation or funding research into renewable energy.

The name of a green energy plan suggests that renewable resources will be used to create the energy you use, but this is not the case. Some companies will take a proportion of their energy from renewable resources, but there is no legal obligation at present for companies to offer renewable energy on green tariffs.

Online Energy Plans - Most energy companies will offer discounts to customers who buy online and further savings can be made if you manage your account online too. This is because online purchases and accounts are quicker, easier and cheaper for energy companies to process so they can charge you less.

However, if you choose to pay for your energy via direct debit, it may be prudent to be aware that your direct debit will be a fixed price but your energy bills can rise, meaning you can end up owing your energy company money.

Reading your meter

It’s very important to read your meter regularly and let your energy company know what your readings are. If you don’t provide meter readings then your usage will be estimated, meaning you can end up paying more than you should be. Conversely, if you’re paying too little you will be running up a debt to your energy company.

Choosing a plan

When you know the different plans and options available, you can make a more informed choice about the company and tariff you choose. Make sure you shop around for quotes to find the best deal and if in any doubt about what you’re paying for then contact your company who should be able to explain your bill in more detail.

If your energy supplier does not receive meter readings from you they will come up with an average of what they think your usage is and charge you accordingly, which means you could end up paying more for your energy than you should be.

If you receive paper bills then you will also be able to fill out a meter reading when you send your bill off. If you manage your account online you will be able to fill in the details needed over the internet.

Below is a brief look at the different types of energy meters available:

Digital Meter

A digital meter will normally show a row of five numbers and you should read the numbers from left to right. The last digit will show a fraction and you should always choose the lower figure when noting down the number. If your meter has an LCD display then there will be no fraction to read.

Dial Meter

This type of meter consists of a row of dials. The numbers around the dials range from 0 to 9. Read the dial from left to right and note down the number that the hand of each dial is pointing to. If the hand is not pointing directly to a number then choose the lowest number that the hand is near to.

Economy 7

When you choose an Economy 7 tariff you pay a lower price for energy used at night but you will also need a special meter installed which gives day and night readings for your energy usage. Normally, your daytime reading will be marked ‘high’ and your night time reading will be marked ‘low’.

You can read the numbers in the same way you would on other meters, but if you have an LCD display you’ll need to press a button to see the two different readings.

Gas Meters

Gas meters differ from electricity meters because the gas you use is measured in cubic feet or cubic meters, rather than kilowatt hours. You should find your meter clearly marked to tell you how your gas is being measured.

To take a reading, read the numbers from left to right and include any zeros even if they are at the start of the row of numbers.

Submitting your meter reading

Most energy companies will allow you to submit a meter reading online, through the post or by phone. It’s very important to read your meter regularly so you don’t end up paying less than you should be as your company will require you to pay the extra which can land you with a hefty and unexpected bill down the line.

However, you can compare tariffs quickly and easily using the internet and find great deals that could save you hundreds of pounds a year, so the time you spend searching for the best deal will really pay off.

How to find the best deals on energy tariffs

These days the best way to get lots of quotes quickly is to use a comparison website. Energy comparison sites will normally require a certain amount of information to provide quotes for you and if you want to get the most accurate results then make sure you enter all the information asked for correctly.

Most sites will need to know where you live, who your current supplier is and how much you pay for the energy you use each year. You can calculate the amount of energy you use each year by looking at your bills or contacting your supplier directly.

Once you’ve added all your information to a comparison site you’ll be offered a list of quotes from different energy companies that could be lower than the price you are currently paying.

However it’s always important to check each quote carefully to ensure you know exactly what is being offered and whether it is suitable for your needs.

Different types of tariff

It may be helpful if you decide what type of tariff you want before you look for quotes. If you choose a standard tariff you’ll be charged according to the price of energy at the time you are billed, which means the amount you pay can fluctuate. If you don’t choose a tariff when organising your energy supply you’ll automatically be put on a standard tariff.

If you choose a fixed tariff then you’ll pay the same each month even if the price of energy rises, meaning you make a saving on the amount you pay. However, if the price of energy drops you won’t benefit as you’ll still be required to pay the same. In most cases if you want to switch supplier before your contract runs out you will have to pay a fee.

Economy 7 and Economy 10 tariffs offer cheaper rates when you use energy at off peak times, but in most cases you’ll need to use at least 20% of your energy at night. If you choose this type of tariff then you won’t be able to switch to a supplier that doesn’t offer the service.

If you choose a green energy tariff then a proportion of the money you spend will help to fund eco projects, effectively offsetting the carbon footprint you produce. However, a green energy tariff does not mean that the energy you use will come from renewable resources. If you choose a green energy tariff you should be able to find out what type of projects your money is going towards.

Social tariffs are offered to those who may find it difficult to pay energy bills and are offered at a lower than average rate. In order to qualify for social energy then your gas and electricity bills have to account for more than 10% of your total household income.

If you want to find out if you qualify you’ll need to know how much you are spending on energy every year. You can get help from your local social security office if you need to apply for a social energy tariff.

Some homes use a pay as you go system to supply energy and this is usually done by topping up a token, key or card which is then placed in your meter.  This is generally considered to be the most expensive way of paying for energy, but can be useful if you find it hard to keep track of what you are spending.

Smart meters are one of the latest energy saving innovations that are becoming widely used in homes. In basic terms, a smart meter will allow you to clearly see how much energy you are using and how much it is costing you. Studies have found that households who are aware of how much they are spending are much more likely to reduce their energy usage.

Switching energy suppliers

If you want to switch energy suppliers then you need to make sure you inform your current company. When you’ve chosen the supplier you want you can switch over the phone or online, but make sure you have all the details of your current contract to hand including your address, the name of your current supplier and whether you are paying for gas, electricity or both. Comparison sites can also help you with a great deal of the paperwork in many cases.

There are hundreds of companies out there all vying for your business, which means switching to a new provider is much easier than it was a few years ago. However, it can still take a few weeks until your supply is switched, so make sure you don’t end your contract with your current supplier until your new one is ready.

Climbing the property ladder has been made more difficult by a slowdown in the housing market. But staying put is no bad thing if you can breathe new life into your home with modifications and upgrades.

So what is the most effective way of boosting a property’s value and getting the most from your living space?

Loft conversions and home extensions - handy tips!

Increased living space equals increased value. And pound for pound, loft conversions are the most cost-effective way of increasing the selling price of your home.

First, you’ll need to do some homework and find out whether your vision for loft living requires planning permission.

Consider whether your home is suitable for conversion. Ideally, you’ll have a steeply pitched roof which is high enough to create a light, airy space.

Loft conversions also affect the floor below because you’ll need space to build a staircase. That will need proper planning, so call in the professionals if you don’t have the necessary skills.

Get a loft conversion right and you could boost the value of your home by more than 15 per cent.

Likewise, an extension needs to be properly planned and must be in keeping with the rest of your property.

All properties have a ceiling on their value which is set by their location. So don’t overspend on a huge home extension and create a house which dwarfs those of your neighbours – because you won’t recoup your outlay come resale time.

Converting a basement is a trickier proposition. Generally the advice here is tread with care: converting a cellar into living space can mean foundations need to be reinforced and major damp-proofing work carried out.

Space for your car

Many households have more than one car and building a garage can add 15 per cent to the value of a home in an urban area. Garages are so desirable that it can be a mistake to build a garage conversion – in some cases you’ll dent the resale value of your property by doing so.

Improve your bathroom and kitchen

The cost of fitting a new kitchen or bathroom is unlikely to be fully recouped when you come to sell your home. This is because your dream worktops or corner bath may not be to the taste of a buyer and they will move in and rip them out.

But if you’re planning to stay in a property for some time then why not enjoy the fruits of home improvements?

And a well-maintained, fresh-looking home will be far easier to sell when you do put it on the market than one with a dingy bathroom or worn kitchen.

Do a professional job

If you’re going to improve your home, do it properly. That goes from everything from kitting out an extension with high-quality fixtures and fittings to calling in decorators to wallpaper a room if your DIY skills aren’t up to the job.

Bodged decorating or poorly-fitting electrical and plumbing fittings will be noticed by prospective buyers, or their surveyor, when you come to sell.

Another word of warning – DIY modifications can invalidate your buildings home insurance policy.

The recent trend for open-plan living has resulted in instances of dangerous DIY removal of interior walls.

Get this wrong and you’ll weaken the structure of your home with potentially lethal results.

If in doubt, call in a builder. A builder should have insurance cover so if they get it wrong, you won’t lose out financially.

 But there are also lots of things to think about – not least your finances! In the whirlwind of romance, it’s easy to forget about money, but it doesn’t have to be a headache or end in arguments - as long as you plan carefully.

Starting out

Before you’ve even started to daydream about making pancakes together in your pyjamas, you need to have a serious chat about money. Be completely honest and tell each other where you stand, including any credit card debts and outstanding loans.

Also discuss your monthly outgoings, from topping up your Oyster card or paying for petrol, to how much you spend on nights out.

Disclose how much you earn a month and then work out whether you’ll split bills and rent 50-50 or, if one partner earns more, decide on a fair division.

What you’re paying for

If you’re going to look for a place to rent together from scratch, you’ll have to pay a deposit on your new home. It could be that one of you pays the deposit, or you go halves - but it’s worth keeping a note for future reference. Also consider a six-month contract, so you get a trial period of living together and you’re not tied in for a full year if things go wrong.

There’s also the question of furniture. It could be that you already have some, but if you do a big shopping trip, decide who’s going to pay for what in advance – and keep a record of it.

Then comes the boring part: bills. If you’re moving into your partner’s existing home, things like council tax, electricity, gas and water will already be set up in their name, so work out how much you should be paying them back each month. Now could be a good time to look at switching utility providers for the best deal.

Decide whether you need a landline and internet – or if you’re happy just using your mobile phones with separate bills.

Food shopping should be fun, but can turn nasty if you quarrel over whether you’re buying basic or best – so always write your list together first and stick to it; grocery shopping online is by far the easiest way.

Don’t forget about home insurance, you’ll need this to cover your possessions even if you are renting. And if you are moving into your partner’s place, make sure his or her policy will cover your stuff, especially any expensive items. Get some cheap home insurance quotes and work out the best deal for both of you.

If you’re buying a house together then you should also think about mortgage life insurance to cover you and your partner in case the worst happens.

Setting up a joint account

If you’re renting somewhere together and don’t want to quibble over who pays which bill, it’s worth setting up a joint bank account to manage your direct debits.

It’s unlikely one of you will do a runner with all the cash, and it means you know exactly how much money you have left in your own account come the end of the month for things like clothes, the gym and nights out - without asking for permission to spend on yourself.

You’ll both need to be present at the bank at the time you set up the account, so arrange a convenient time to do this. You’ll need to decide what percentage of your income you’re going to transfer each month into the joint too.

The great news is, once you’ve made all the financial arrangements, you should both be better off – and you can finally relax and enjoy those pancakes.

The main types of home insurance

Buildings insurance and contents insurance are the two main types of home insurance available. Buildings insurance covers the structure of your home so your roof, walls and windows will be covered. Some buildings insurance will also cover permanent fixtures such as a fitted kitchen or bathroom.

The types of policies available vary but any policy you choose should cover damage caused to your home in the event of flood, fire, storms, subsidence, falling trees and burglary. You can add extra cover to your buildings insurance, such as accidental damage, but this will normally increase your premiums.

Some things are often excluded from your buildings insurance such as damage due to wear and tear. Your policy could also be invalidated if your home is empty for more than thirty days in a year, so ensure that you read all the small print before you agree to a policy if it is likely that your home will be unoccupied for a month or more.

It is not a legal requirement to have buildings insurance on your home but if you want to get a mortgage most mortgage providers will require you to be insured. If you are a tenant then it is the responsibility of your landlord to provide buildings insurance.

How much buildings insurance do I need?

You should calculate the buildings insurance you need based on how much it would cost to rebuild your home if it was completely destroyed. However, this is generally not the same as the value of your home and in most cases is actually lower.

You can get insurance which offers unlimited cover that will pay for the cost of repairs no matter how expensive they are, but this can lead to higher monthly premiums.

How much contents insurance do I need?

As well as buildings insurance you can also insure the contents of your home. To work out exactly how much contents insurance you need you could take an inventory of the contents of each room, including things like televisions, laptops, electronic equipment, furniture and jewellery. Don't forget to include any contents you have stored in your shed, attic or cellar and include clothes, curtains and carpets.

Most insurers limit the amount they will pay out for a single item and the maximum is normally around £1,500, so if you have possessions that are worth more than this you may want to consider taking out extra insurance on them.

When purchasing insurance your insurer will normally ask you to declare any valuable items you have within your home. Make sure you declare any relevant items as if you do need to make a claim but haven't told the insurer about your valuable items, your policy could become invalid. A contents calculator can help with this process.

Do I need contents insurance if I am a tenant?

In general, landlords will only pay for buildings insurance on your home if you are a tenant, so if you want the contents of your home to be covered you will need to take out tenants insurance. If you live in rented accommodation you may be more vulnerable to burglary due to things like shared entrances. In addition, contents insurance for tenants can cover you if you cause damage to the landlord’s carpets or curtains. If you share a property with other tenants or live in a property that came fully furnished, you may find it more difficult to find an insurer.

Can I get contents cover if I am a student?

You can get contents cover if you are a student, which can be useful as students often have expensive equipment such as laptops or ipods. It is possible to add your contents insurance onto your parents’ policy, but this is not always the cheapest option and it can be more economically viable to take out your own insurance. It is probably wise to carry out extensive research to find out what your best option is.

Can I get insurance if I live in a flood area?

Historically, it has been difficult for homeowners living in areas where the risk of flooding is high to get insurance. However the Association of British Insurers has made a deal with the government to ensure that people living in flood areas can insure their homes until 2013, when the current policy will be reviewed.

However, people living in areas at risk of flood should expect to pay higher premiums on their insurance and in many cases the cost of paying excess on claims will also be higher.

Many insurers will expect you to take defensive measures to protect your home from floods before they will insure you, such as installing flood boards and moving electrical points so they are above flood level. You can also replace wooden doors with concrete to further protect your home.