Types of insurance

Information

Insurance is a way of protecting yourself from any costs that may arise from damage to your property or your health. Insurance works when you agree to transfer risk by paying specified amounts of money, called premiums. A premium is an amount of money paid to an insurance company by a consumer to have an insurance policy. These premiums create a pool of money that guarantees the individuals will be compensated for losses caused by occurrences such as fire, accident, illness, or death. Insurance companies decide what the risk is on a particular policy and then charge the appropriate premium. A premium can be paid either monthly or annually.

The only way to ensure that you get value for money with regard to insurance is to shop around. Policies are generally renewed on an annual basis you should shop around at this stage to see if you are getting the best value for your money. The National Consumer Agency has developed a range of Independent Consumer Guides that will explain how different types of insurance work. The National Consumer Agency has also developed a range of Insurance Cost Surveys that will help you to shop around for the best value insurance.

Different policies have different terms and conditions so make sure you know what the terms and conditions of your policy are. Problems with insurance policies can often only come to light when it is too late to rectify them. It is therefore important to understand exactly what your insurance policy covers at the time of purchase.

Home Insurance

Home Insurance will generally pay for any damage caused to your home by accident or by bad weather. Your home should be insured for damage to contents and for damage to the structure of your home. You are not obliged by law to insure your home but if you have a mortgage, most lenders will insist that your house is appropriately insured. You can get a policy at the same time as you get a mortgage for your property. It is important to note that you don't have to avail of the insurance that is offered to you by your lender and you can source your own insurance should you wish. The National Consumer Agency can help you when seeking the best value home insurance policy.

Motor Insurance

In Ireland it is a criminal offence for drivers to drive uninsured on public roads. You can find out more about motor insurance. The National Consumer Agency can help you compare costs by using their online motor insurance cost survey.

Health Insurance

Health insurance is used for private care in hospitals or from health professionals in their practices. There are a number of health insurers in Ireland. You can find out more about health insurance in Ireland.

Travel Insurance

Travel insurance can cover you in the event of illness or accident while you are on holidays or travelling. If you are travelling within the EU you should ensure that you have a European Health Insurance Card. Travel Insurance should supplement the services that are available to you if you have a European Health Insurance Card. You can find out more about travel insurance and other health issues when travelling abroad.

Life Insurance

A life insurance policy provides money for dependents in the event of your death. Life insurance policies are important if you have dependents such as a partner or children. If you have loans, such as a mortgage, a life insurance policy will ensure that your loans can be paid off in the event of your death.