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Jennifer Cunningham y Asociados S.L Issue 113 10/10/2008 |
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Written by Jennifer Cunningham
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SPEND YOUR MONEY WISELY.
With the Pound still very weak against the strong Euro, the value of our money arriving from the UK has taken a very nasty dive and is predicted to remain so for some time. The higher rates enjoyed in the past years are said not to be returning but a rate in the 1.30’s should be worked with as a figure going forward we come out of this slump. Afterall, the US led slump has affected the UK economy and consequently most of Europe too.
Therefore, budgets have to be re-assessed and economies made with a long term plan. The Spanish population have not been as conscientious as the Brits about financial planning, mortgages, insurances and pensions etc... Most Brits would not consider insuring a new or newish car on a Third Party Only basis, however this is quite common practice with the Spanish, doing so only to fulfill the legal insurance requirement to be able to drive their car!
With the housing market at a low, with sources estimating that realistic sale prices should be 20% lower than the past few years, some Brits are finding themselves unable to sell for what they paid for their property, let alone make a profit. House prices increased 150% from 1998-2008, with inflation now being at a 13 year high of 5%. On a positive side the Spanish Banking system has been credited with “one of the most solid among all the Western economies”.
As a cost reduction task, phoning round in Spain for a cheaper insurance quote, or going on the internet is not the same as in the UK, in many instances a cheaper price can mean a reduction in cover too. It is wiser to take some time to review your car and house & contents insurances. Don’t simply auto renew, pull out your policy and check if the cover is correct, if you do not know, take your policy along to one of my local offices and ask one of my friendly, experienced team to review this with you. The unexpected does happen and when it comes along, (note the number of earthquakes we have had in the past months!) you need to be confident that your policy provides you with that level of cover. Insurances, especially car, are more expensive than the UK, because of the claims ratio.
Liberty Seguros, part of the global giant, Liberty Mutual Insurance Group, founded in 1912, employ over 41,000 people and have over 900 offices worldwide. Listed 94 in the Fortune 500 list, they have received ratings such as “Excellent” (A) from the A.M. Best Company, “Good” (A2) from Moody’s Investor Services and “Strong” (A) from Standard & Poor’s. When looking to save money, be sure this is not false economy, why pay for years and then when you need to make a claim, discover the failings and pitfalls of cheap insurance. Ask who is the actual insurer and what are the benefits when calling for quotes, don’t decide on price alone.
A company registered and regulated in Spain and authorized by the Spanish Government via the DGS, is the correct way to insure whilst living in Spain. Some Brits still look for being regulated in the UK by the FSA. This is Spain,not the UK. What about complaints or a court appearance, will the FSA fly out to Spain? Spend your money wisely.
Jennifer
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