Family budget saving


Family budgeting is about what is what you need rather than what you want. So many services sell you a basic product you need, and then slip in extras you do not need, but they sell them cleverly. Its only a little more to pay, and can you really do without it are the sales techniques.

Be aware when buying insurance. The comparison websites are driving down the cost of the insurance you must have on a vehicle, but the insurance companies and insurance brokers are selling those extras very hard. Legal cover, personal accident insurance, and breakdown cover. Yes it is convenient to buy these together, but watch the cost rise. Think what you could save by looking at the benefits and deciding if you need these extras, and if you do look at buying them separately.

Legal cover for your family is free through Your Key. That’s a saving of £25 per vehicle each year.

Personal accident insurance sounds reassuring, but look hard at what is actually covered, what is not, and weigh it up. The insurance companies have all the statistics available, so they know what is likely to happen. They only make a payment, and usually a small one, in particular circumstances. Think hard about those circumstances, and ask yourself are they really likely to happen. You might also have the situation covered through other insurance on your mortgage or other loans, and you cannot be paid twice for the same loss no matter how many policies you have. Personal accident insurance looks attractive, and of course it is meant to look attractive, but look hard at the cover and decide is it an insurance policy you need, or is it just being sold cleverly.

Breakdown insurance is often bought on grounds of convenience when you insure a vehicle. The mistake you may be making is to insure each vehicle separately rather than insuring you for the vehicles you drive and ride. You can only use one at a time, so why have them insured separately.

The other mistake you can make is to but too much cover. The basic cover gets someone out to you to repair the vehicle or take it to a nearby garage. The extras include get me home or to my destination, accommodation, a phone call home, and who knows what else. When was the last time your vehicle broke down and you needed any of these services?

So stop and think. Decide what you need and but that and nothing else.