QUESTION 2:
But isn’t it risky taking out a policy from some small company I’ve never heard of? They might sound convincing on the phone but how will I know I’m really covered if things go wrong?

ANSWER:
It is always worth checking who you are dealing with before handing over any money. The Financial Services Authority regulates most of the financial world in Britain and it can tell you if a company is legally authorised to be doing business. Get more information on its website, www.fsa.gov.uk. As well as background information on who can take client money and what sort of protection you get if things go wrong you can also use the FSA’s ‘firm check’ facility to investigate the credentials of individual companies. It is also important to make sure you know if you are dealing direct with an insurance company like Norwich Union or with a broker or intermediary who shops around among many other insurers for you. The AA and most of the other motor bike specialists come into the second category. Using brokers can make sense because they look at so many policies before finding the most suitable for clients. Express Insurance, for example, reckons it has around 16 providers on its books, some rivals claim to link up with even more. The good news is that if you approach a handful of brokers you should be able to spread your net really widely. Almost every provider will offer no obligation quotes by phone or online. Putting some time aside for some calls or surfing can make sure you cover most of the market and save a decent amount of cash.