Chinese or international students new to the UK or planning to live in the UK must know something about UK insurance. Although it is said that medical care is free in the UK, and there is no such thing as buying medical insurance, it still involves other insurance needs. For example, if you have a car at home, you must purchase your vehicle insurance. In addition, if you have family and friends in the United Kingdom for short-term travel, it is best to buy short-term travel medical insurance. You may still be a little confused, but here I have compiled the most comprehensive knowledge of the United Kingdom insurance science and technology, including the United Kingdom insurance types, insurance companies recommended, bill view and insurance recommendations, full of dry goods, everyone quickly come to get it!
What is insurance?
Buying insurance is a way of risk management, paying a certain amount of premiums to the insurance company and getting compensation from the insurance company for the financial losses suffered when encountering accidents that may occur as agreed in the contract. Generally speaking, British medical care is free in the United Kingdom, and all expatriates holding a British visa of more than six months are entitled to free medical care. They can go to public hospitals directly when they are sick. Therefore, there is no need to buy governmental medical insurance. If you want to buy, you should purchase commercial private medical insurance, car insurance if you have a car at home, and then home insurance, life insurance, commercial insurance, and so on.
Auto Insurance
Car insurance is mandatory by UK law for drivers to be insured on the road. The police have the right to tow your car when they find it, and if you don’t pay your insurance within 21 days, the police will destroy your vehicle. The price of car insurance varies depending on the individual and will generally vary by age, driving age, safe driving record, car condition, mileage, and gender. Generally, new cars are more expensive in the first year, and in the second year, the premiums are considerably lower if you haven’t had any accidents.
Car Insurance in the UK
- Third-Party Only: Third-party insurance is the most basic form of car insurance. It covers you only if you have an accident, and the insurance company is responsible for settling the claim for the other party’s car or the injured person. Still, the insurance company doesn’t care if your car is also damaged, no matter the circumstances. If you drive an old car and have a few years of driving experience, consider getting this third-party insurance.
- Third-Party Fire and Theft: This car insurance includes third-party cover and allows you to claim if your car is stolen or vandalised. If your vehicle is not expensive, this type of insurance may be cheaper than the comprehensive insurance described below.
- Fully Comprehensive: Fully Comprehensive is the car insurance with the broadest coverage, including the two types of car insurance mentioned earlier. And there are also some special coverages, such as vehicle breakdown and scrapping, legal disputes, etc. However, these additional categories are different for each car insurance, and you also need to look at the Policy Terms carefully and buy according to your own needs.
Private Medical Insurance
Although the UK has a robust NHS-free healthcare system, it has been criticised for inefficiency. Private medical insurance is seen as a supplement to the NHS, allowing the insured to continue to use NHS services while enjoying private medical insurance. The purpose of private medical insurance is to cover “acute illnesses” that occur in your life. An acute illness is a condition or injury that can be cured within a short period and treated promptly to enable the patient to return to their original state of health. Currently, most private medical insurance policies are available in various combinations to suit the policyholder’s needs and the cost of the premium within the budget.
Private medical insurance generally covers the following medical expenses:
- Hospitalisation costs
- Diagnostic tests (e.g. MRI and CT scan)
- Surgical procedures
- Costs of consulting specialists
- Hospital accommodation and nursing costs
- Cancer drugs
- Medicines not covered by the NHS
There are many commercial health insurance providers in the UK; some familiar ones include Bupa, best, Pre Health, etc. However, private health insurance is generally expensive. However, private medical insurance is usually costly and has many schemes, so read the insurance policy details before buying it.
Life Cover
- Life Assurance: Simply put, if you die during the insurance period and have paid your premiums on time, the insurance company will give you compensation according to the amount of insurance.
- Income Protection Insurance: The insurance company will pay you monthly if the insured person cannot work due to an accident or illness. Generally, the insurance company can only cover 55% to 60% of your salary at the time of application, and there is usually a delayed payment period.
- Critical Illness Insurance: The purpose of this insurance is that if the insured is diagnosed with one or more of the critical illnesses listed in the policy, such as a malignant tumour, myocardial infarction, cerebral haemorrhage and so on, the insurance company will give you a corresponding amount of money according to your policy.
- Mortgage Payment Protection Insurance: If you cannot work due to illness, unemployment, dismissal, accident, etc., the insurance company will pay you a monthly amount to cover the mortgage payment.
Pet insurance
In the UK, the cost of seeing a vet when your pet is sick is outrageous. If the veterinarian recommends hospitalisation for observation, the price will be around £1,000. The cost will be unbelievable if the pet meets with an accident and needs to be hospitalised for surgery. Therefore, most families with pets in the UK will buy pet insurance. The price is not high; buying a little medicine costs more than a year’s insurance. The UK is one of the more developed countries regarding pet insurance. The first pet insurance policy in the UK insurance market was sold in 1947. Pet insurance is well known in the UK, and the UK pet insurance market reached £976 million in 2015. It is expected to grow to £1.6 billion by 2023, making it the most extensive pet insurance market in the world today.
Travel insurance
When travelling outside the country, especially abroad, you buy it for peace of mind. Especially when travelling from the UK to Europe, as long as you need to apply for a Schengen visa, you must buy travel insurance, one of the mandatory documents for a Schengen visa.
Precautions
- Do your research, find the policy, and see what identity requirements are for their policyholders. However, the policy is very long and difficult to find, usually in the policy summary or eligibility.
- If you can speak English, the most direct way is to call customer service. Remember to make your situation clear and buy it on the phone or buy it online after confirming that you can be covered.
- Which kind of travel insurance should you buy, single trip or annual, backpack, cruise or winter sport, different types of insurance and trips? Some companies are very detailed and cover different things.
- Consultation: remember the name of the person who serves you and remember who said, after the emergence of claims obstacles, at least can also be used as evidence.
FAQ
Do I need to purchase all types of insurance mentioned in the guide?
No, you do not necessarily need to purchase all types of insurance mentioned in the guide. The type of insurance you require will depend on your specific needs and circumstances. For instance, if you own a car, it is mandatory to have car insurance, but if you are a renter, you may not need homeowner’s insurance.
Are there any government-mandated insurance policies in the UK?
There are several government-mandated insurance policies in the UK, including car insurance and employers’ liability insurance for businesses with employees. Other types of insurance, such as health and life insurance, are not mandatory.
Who is the best insurance company in the UK?
Regarding the largest insurance companies in the UK, Aon takes the lead, followed by Prudential Plc, WTW, Aviva, Admiral Group, Phoenix Group, and Beazley. Ultimately, the best insurance company for you will depend on your individual needs, lifestyle, and budget.
