Insurance
No one knows what is going to happen in the future. There’s no way of telling if one day we’re going to crash our car or come home to find we’ve been burgled. But we can protect ourselves financially when things like this go wrong. This protection is called insurance.
These days you can get insurance for almost anything. You’ve probably heard stories of film stars insuring their bodies or voices. For most of us, there are just a few sorts of insurance to consider.
- Car insurance. It’s illegal to drive a car without insurance so this one is a priority if you’re thinking of driving again.
- Buildings insurance. Most people who own their own homes have buildings insurance. This means if something like a fire or flood happens the insurance company will give them some money to repair the damage. If you rent a home, your landlord should pay the buildings insurance.
- Home contents insurance. This covers the contents of your home, which means items like your furniture, television or CD collection, against things such as theft or flood. If you’re renting a home, it is usually you who must pay this.
- Life insurance. Some people take out life insurance, which means that if they die, someone close to them such as a husband, wife or child will get a sum of money to help them carry on living. This is particularly important if you’re the one earning most of the money in your family. Life insurance can ensure that any debts you might leave are covered (mortgage, car loans, etc).
How insurance works
Insurance can seem complicated but the basic principles are quite straightforward.
- An insurance company works out how likely it is that an accident or event will happen and what it would cost to put it right.
- Based on this, the insurance company sets a premium. This is the amount it asks you to pay in order to protect yourself against the accident or event. The cost of the premium is often spread across a year so you pay it on a monthly basis.
- If whatever it is you have insured yourself against happens, you then make a claim to your insurance company and it pays out the agreed amount.
Important information about insurance for ex-offenders and your families
As an ex-offender, when applying for insurance, you must disclose your unspent conviction(s) even if not asked. It is an offence not to.
Although this may make you feel as if you are still being punished for your offence, it is very important to do this.
If you do not disclose unspent convictions and you need to make an insurance claim, you may find that the insurance company doesn’t pay out.
And don’t be tempted to put the insurance in someone else’s name, as this will also make your insurance invalid.
Where to find an offender ‘friendly’ insurance company
Organisations like NACRO, the YMCA, SOVA, Apex Trust and UNLOCK are amongst those offering this service. Your resettlement department or probation office will be able to give you contact details for insurance companies that offer ex-offenders and their families insurance. Many have a great deal of experience in this field so do be honest. And as with all services, it is good to shop around to get the best value for your money.
Do check:
- what is and is not covered by any insurance policy;
- what the excess is (this is the first part of any insurance claim that you are expected to pay. Higher excess normally means a smaller insurance bill, but do be prepared to pay this if you need to claim at any point in time;
- payment terms (it is possible to pay in instalments in some cases; and how much this adds to the insurance policy; and
- for add-ons like legal cover – you will be paying for these and they can add up quickly.
Additional Resources:
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