Student Insurance

Why do I need Insurance?

While you are at University, you will probably have a lot of items in your flat which cost quite a large sum. Most students will have one, several or all of the following:

• Television
• Stereo or docking station
• DVD Player
• Game station and games
• CDs and DVDs
• PC or Laptop
• i-pod or MP3 player
• Digital camera
• Musical Instrument
  Bearing in mind one in every four students is a victim of crime, if you get your possessions stolen you could be looking at a loss of around £3,000. The fact is you could be an easy target - especially if you're new on campus. That is why it might be wise to insure your possessions.

  How does Insurance work?

Companies, Standards and Procedures

Generally when you look for insurance there are several companies in the market who will offer competitive quotes. It is important that you go with a reputable company who ideally should be members of the General Insurance Standards Council. When you call the company for a quote the operator will ask you some personal details and these may be kept on a database shared with other companies to help detect fraud. They will then go through a series of questions about the area where you live, the possessions you wish to insure and what security arrangements you have for the possessions and your home. They will then use their underwriting to assess the risk of insuring you.

Premiums

The insurer or broker will then offer you a premium, which will include Insurance Premium Tax. The premium may then be broken down into a monthly figure that you will pay to the insurer. It is quite common for first-time insurers to have to pay the first years' premium in one lump sum. Once you have been with them for a full year it is likely they will then offer you an option of monthly payments. If you do pay monthly it is likely that there will be interest on the instalments so always make sure to ask what the interest is.

Excesses

It is also common for insurers to attach an excess to the insurance. An excess is an additional payment you would make in the event of a claim. For example you may have a theft excess of £25 and an accidental damage excess of £50. Therefore if an item is stolen, you would pay the first £25 towards the cost of the claim, and similarly £50 in the event of the item being damaged accidentally

Declined Quotes

Sometimes the risk you present may be too great to make it worthwhile for the insurer to offer you a premium. For example if you own £15,000 worth of goods and you live in a ground floor flat with no alarm and easily opened windows, it is likely that your business would be declined since the risk is too great. Alternatively they may impose certain restrictions on the policy, for example, they could cover you for accidental damage but not for theft. Or they could only cover you for theft if you take certain security precautions such as installing an alarm.

Making a claim

If you are unfortunate enough to have your property damaged or stolen then you may have to make a claim on your insurance. There are certain things to take into consideration. Is the property covered under the terms of the policy?
In some cases insurers will refuse to pay out if the property is lost, stolen or damaged in a certain way. For example it is common to exclude payment if property is stolen while left in an unlocked room. It is also common for insurers to avoid paying if property is damaged as a result of war or an Act of God. It is important that you read the terms of the policy and ensure that you are able to claim.

Is it worth claiming for?

In some cases insurers will operate a No Claims Bonus scheme where for every year you do not claim, your premium decreases. If an item is only worth £35 and the excess is £25, it wouldn't be worth making a claim, as it will only increase your premiums the following year. The more claims you make the more of a risk you are to insure and therefore your premiums will be increased. Generally it is only motor insurance policies that operate NCB and protected NCB policies

Recommended Companies

As a Strathclyde Student you are also eligible to become a member of NUS, the National Union of Students. NUS recommend using Endsleigh Insurance who are the number 1 student insurer in the country. Click here to go to the Endsleigh Insurance website. If you have any further queries regarding insurance, contact ask@theunion.strath.ac.uk