Podcast Summary: Merryn Talks Money

Episode Title: How Much Insurance Do You Really Need?
Date: January 28, 2026
Host: Merryn Somerset Webb (Bloomberg Editor-at-Large)
Guests: John Stepek (Senior Reporter, Money Distilled), Kevin Ryan (Consumer Insurance Analyst, Bloomberg Intelligence)

Overview

This episode dives into the often-confusing world of personal insurance. Merryn Somerset Webb explores an essential question for anyone managing their finances: exactly how much insurance is necessary? With insights from insurance expert Kevin Ryan and finance journalist John Stepek, they break down which insurances are absolutely required, which are highly recommended, and those that are more flexible or optional. The discussion considers everything from car and home insurance to pets, health, and travel, offering real-world advice and clear explanations in Merryn’s trademark witty, conversational style.

Key Discussion Points & Insights

1. The “Must-Haves”: Legally Required Insurance

Car Insurance

• Only insurance that is legally required in the UK.
  • Third-party insurance: Minimum legal requirement; covers damage to others, not you ([04:44–05:26]).
  • Fully comprehensive: Covers both others and your own car ([04:55–05:16]).
  • Not all insurers offer third-party only anymore due to competitive pricing and extras being cut ([05:30–06:15]).
• Important policy features to watch for:
  • Windscreen cover (modern cars have expensive windshields with sensors)
  • Courtesy car (delays for repairs are common)
  • Shop around for young drivers—comparison sites can offer significant savings ([07:12]).
• Cost trends:
  • Contrary to popular belief, average premiums have started dropping after spiking in 2023 due to regulatory changes ([08:02–09:36]).
  • “Prices may be down over a year or so, but they're still fairly comprehensively up on pre-Covid levels.” – Merryn ([08:30])

2. Building & Contents Insurance: Essential for Homeowners

• Building Insurance:
  • Not legally required unless you own a property, but crucial. Mortgage lenders usually insist on it.
  • “The mistake that people make there is insuring their house for the value of their house rather than for the cost of rebuilding.” – Merryn ([10:14])
  • Over-insuring doesn’t mean higher payouts; claims are for rebuilding cost only ([10:32–10:39]).
  • Underinsuring can risk policy invalidation ([11:14]).
  • Online calculators work for standard homes, but unique/period properties require specialist broker advice ([12:07–12:36]).
• Contents Insurance:
  • Often overlooked, but vital. Underinsurance is common—the onus is on owners to provide proof of expensive items ([13:13–14:30]).
  • For inherited, valuable, or unique items: take photos, secure valuations, and keep documentation offsite.
  • “Insurance is mostly there for catastrophes rather than minor inconveniences.” – John ([16:24])

3. Optional but Sensible: Other Insurance Types

Pet Insurance

• Highly recommended if you have pets, especially dogs/cats.
• Veterinary costs can be as high or higher than human medical care. Example: border terrier with multiple injuries cost “the most expensive border terrier in the world” ([18:10-18:42]).
  • “A dog's leg is about three grand. It's the same as a human leg.” – Kevin ([17:24])
• Trying to self-insure rarely covers unexpected, high-cost emergencies ([21:31–21:52]).
• Small pets (e.g., hamsters) might not require insurance—humorous aside about the vet’s attitude: “20 quid for a new one.” ([22:40–22:56]).

Private Medical Insurance

• Increasingly popular as NHS waits grow.
• Costly for individuals in their 40s/50s (£2,000–£3,000 a year).
• Self-insuring plausible for routine needs, but insurance valuable for major illnesses or expensive urgent treatments ([23:29–24:19]).
• NHS as universal “catastrophe insurance,” but realistic access concerns raised ([24:56–26:23]).

Life Insurance and Critical Illness Cover

• Life Insurance: Often provided as a work benefit; check your contract.
  • Good idea to cover an outstanding mortgage.
  • “If you're in a couple and you've got a mortgage, then a bit of life insurance to cover that outstanding mortgage… is a good idea.” – Kevin ([26:47])
• Critical Illness Insurance: Most useful for self-employed; can be expensive and isn’t for everyone ([27:34–28:03]).
  • Sometimes bundled or as an option with life insurance policies.
  • Some policies pay out early in case of terminal diagnosis ([29:14]).
  • Hypothetical scenario: If given a year to live, insurance pays out, but if you recover, you may owe repayment ([30:08]).

Travel Insurance

• “Surely... I would say travel insurance was compulsory. I'd never go away without it.” – Merryn ([30:40])
• Absolutely recommended for international travel, and especially critical outside Europe; subtle distinctions for business trips, too.
  • Annual multi-trip policies usually cover both leisure and short business travel ([31:51–32:11]).
  • Home insurance or credit cards may offer travel-related cover as perks—always check small print ([32:23–32:36]).

Notable Quotes & Memorable Moments

• On the value of your life: “How much is your life insured for?... How much is the Mona Lisa insured for? May as well ask.” – John ([03:11])
• On rebuild vs. resale value: “If your house burns down, it doesn't matter what it was worth. What matters is how much it’s going to cost you to find someone to put it up again.” – Merryn ([10:14])
• On the importance of pet insurance: “A dog’s leg is about three grand. It's the same as a human leg… And if a dog has an accident… they will mandatorily keep it in overnight. That’s more expensive than most hotels I stay in on holiday.” – Kevin ([17:24])
• On comparison shopping: “It's consistently, certainly in my experience, worth shopping around when you get your renewal… most years I consistently find you can save a reasonable amount of money and it doesn't take that long.” – John ([33:55])
• On insurance admin: “It is entirely possible you could lose everything and get almost nothing back if you haven't done this slightly horrendous sounding amount of admin.” – Merryn ([14:30])
• On critical illness insurance: “Historically, when I've looked at it, I've always personally shied away, thinking, well, you know, I just hope I go quickly and the life insurance kicks in.” – Kevin ([28:07])

Key Timestamps

• 02:20 – Show begins; introductions and episode aim
• 03:11 – Playful discussion: “How much are you worth?”
• 04:44 – Car insurance: What’s legal and what’s recommended
• 07:12 – Insuring young drivers; impact of comparison websites
• 08:02 – Why have premiums risen and then fallen recently
• 10:02 – Buildings insurance—key difference between value and rebuild cost
• 12:07 – How to estimate rebuild costs and when to use a broker
• 13:13 – Properly insuring contents, especially valuables
• 17:05 – Pet insurance and jaw-dropping vet bills
• 21:31 – Can you self-insure for your pet?
• 23:29 – Private medical insurance: demand, cost, pros and cons
• 26:47 – Life insurance: when to get it and who needs it
• 27:34 – Is critical illness cover worth it?
• 30:40 – Never travel without insurance!
• 33:55 – Always shop around at renewal for best deals

Recap & Actionable Takeaways

• Know what’s compulsory (e.g., car insurance in the UK).
• For homeowners: Insure for REBUILD COST, not market value; get broker help for quirky properties.
• Keep records: Photograph and document valuables for contents cover.
• Pet insurance: Almost never enough to self-insure for sudden, large vet bills.
• Health cover: Consider private insurance if access and rapid treatment matters to you—otherwise, NHS is the backstop.
• Life/critical illness: Essential if others rely on your income or you have liabilities; check your work benefits first.
• Travel insurance: Always buy, especially for trips outside Europe; check if your credit card or home insurance already includes some cover.
• Shop around regularly for better prices, especially as markets get more competitive.

Final Thoughts

This was a highly practical episode filled with real-world advice and anecdotes that demystify personal insurance choices. Whether you own a house, love your dog, or are just planning a holiday, the panel’s guidance helps listeners balance peace of mind, practicality, and cost—while keeping their sense of humour intact.

Produced by Sama Saadi and Moses Andam.

For feedback, comments or episode ideas, email: merriamoney@bloomberg.net