Insure your excess?

Many of us will accept a sizeable excess on a policy if it brings down the premium.

An insurance excess is helpful to the insurer as it means claims on the policy are reduced. Someone with £800 worth of damage and a £500 excess is unlikely to claim on the policy for fear the premium will increase next year.

Insurance excess works both ways: for you as the premium is cheaper; and for the insurer as you are less likely to claim. Then someone confuses the issue by suggesting you insure your excess. Such an offer was made to me in an email from Warranty Direct.

So should I buy excess insurance?

Mis-sold payment protection insurance - compensated - tax deducted on the interest

You might have been surprised and pleased to be paid compensation. Interest was added to the compensation quickly followed by a tax bill.

You might feel you just can't win, and in most fights the taxman comes out on top!

Read on and Insurance Guardian will explain how it works - and maybe cheer you up.

Travel and medical insurance - don't leave home without it

The family of a British teacher critically injured in Bali have paid out £250,000 on medical bills because he had no travel insurance.

Car insurance

Car insurance – what are you buying

You must buy third party insurance for your vehicle. This means you have insurance cover if you cause an accident. Your insurance policy will pay for the consequences. This is the insurance you must have by law, and what you add to that basic cover is up to you.

Take the time to understand what is insured you will understand the cost.