Header Ads

5 Ways to Stop Finances being Ruined by Unexpected Bills

In the current economic climate, we are having to take control of our finances more and more as we discover that we cannot quite afford certain expenses in any given month. The best way to make sure that your finances do not become stretched to breaking point is to plan for the unforeseen; and insurance is a great way to achieve this.

Here are five ways to stop your finances being ruined by unexpected bills using insurance policies:

1. Home insurance

Most homeowners take out buildings and contents insurance (especially with a mortgage), but even if you rent a property you should make sure that you have adequate insurance in place.
How many people have had to buy new furniture after a puppy has chewed through it or needed to replace a carpet because of spilled paint? A small accident could lead to a big cost so it’s better to be prepared and plan ahead.

2. Vehicle insurance

Having your car repaired can cost a fortune, but with vehicle repair insurance you can make sure that you are always mobile. While vehicle insurance is a legal requirement and driving without it could expose you to harsh penalties, the level of cover you choose is down to you. Fully comprehensive offers the most extensive cover.

3. General appliance insurance

Trying to survive without a cooker, fridge or washing machine would be a nightmare for most people and with the right insurance you’ll never have to! Although some house insurance policies may cover these items, you can also get extended warranties or separate appliance insurance to offer further protection.

4. Central heating insurance

If your central heating system breaks down in the winter there is no way to avoid buying a new one or having yours repaired. Energy suppliers like npower offer specific care plans which cover such breakdowns and you even get an inspection as a part of the deal which can help mitigate against problem occurring.

Your central heating (and the boiler in particular) are integral parts of your home and if you’re not convinced that insuring them would be beneficial then you only need to look at this infographic from npower which outlines the true cost of a boiler breakdown:

5. Funeral Insurance

The loss of a loved one is devastating enough, but imagine how you would feel if you could not afford the cost of a fitting send off? As the average cost of a funeral currently stands at £7,600, it’s clear why this sort of financial protection is necessary.

Protecting your finances

Any of the problems mentioned here could cause great financial hardship especially if the bills arrive when you have no extra money to spend. By taking out necessary insurance policies, you can protect yourself against these long term issues for only a small immediate outlay.