Take cover because insurance is a racket

PAV’S PATCH:

DO you understand insurance? I don’t. The only thing I understand about it is that I’ve got to have it yet hope to goodness I’ll never have to use it.

What set me thinking is that I recently received my car insurance renewal.

For no apparent reason — no claims, convictions or whatever — the annual premium had gone up by a weighty £42.

The company was very polite but their response was, effectively, like it or lump it. So I’ve lumped it and gone elsewhere. But, in spending less money, have I bought a lower-quality policy? I don’t honestly know.

It makes me think about the first house I owned. As part of the mortgage deal I was set up with buildings and contents insurance and spent 12 months paying a very high price.

When I ditched the policy for something far cheaper I found out that the original arrangement had covered me for all sorts of things like losing my holiday luggage.

I had no idea. I never expected a buildings and contents policy to deal with such things. So I would never have thought of claiming had I lost my luggage. Ironically, when my bags did once go missing, and I tried to claim for a stolen library guidebook, the travel insurance firm replied that as it wasn’t my property they didn’t have to pay up.

When I moved house, I decided not to fall foul of the same problem. I told my mortgage lender that I would sort out my own insurance and — guess what — they charged me for the privilege. Can that be legal?

I’m told that paying by credit card offers some protection but I’ve no idea how.

Three years ago, when Mrs P decided she’d had enough, it was only weeks after I’d booked a Thomson holiday. I rang them up to cancel and asked if I could have my £400 deposit back. I explained that I was a broken and deserted man yet received absolutely zero sympathy.

As I’d paid with a credit card, could I have claimed back my money? All I can say with certainty is that I’ll never book another Thomson holiday.

In closing, ponder this. Credit cards supposedly offer some protection but travel agents, airlines et al charge a fee for using them.

Last year, when I went to America with a group of friends, we all paid something like £12 extra for booking with a credit card.

Use a debit card and there’s no fee... but no protection.

Ever had the feeling that insurance is the business to be in?