Get the right insurance policy for you

Buying the wrong insurance can be worse than having no insurance at all.

You may find yourself with inappropriate or inadequate cover - or even no cover at all if you fall foul of excesses and exclusions. You will then have wasted your money on paying a premium for no return when you come to claim.

Do you have the wrong cover?

The people most likely to find themselves with the wrong cover are:

• Those sold a policy by a third party, such as travel insurance by a travel agent, without checking that cover is adequate and the price is competitive.
  
  
• Those who buy with regard only to price without checking the details of the cover. A cheap policy with multi-section excesses, large excesses and multiple exclusions could prove very expensive if you need to claim.
  
  
• Those who renew their policies without checking if the terms and conditions have changed. Look out for increases in excesses.
  
  
• If you've recently bought a plasma TV, expensive jewellery or a designer wardrobe, the chances are you need to review your household cover.
  
  

Financial research company Defaqto says, "The rise in expensive home entertainment systems means that an increasing number of homeowners are likely to be underinsured. Customers need to check carefully that the quality of cover they are getting is adequate, because cheapest is rarely best."