Consumers urged not to cut insurance
17/09/2008
As many households are feeling the strain of the rising cost of living and current economic conditions, some may be tempted to cut back on their financial outgoings.
However, one form has urged people not to cancel their car and home insurance policies in order to save money.
Defaqto said that many people may now have to "learn" to live within their means again, but it should not mean having to reduce their insurance cover.
Consumers should not cancel their insurance policies "without giving it serious thought", the company advised.
It stated: "Car insurance is required by law, and home insurance is vital to protect your house and belongings."
American Express recently reported that almost half of Britons are planning to "cut corners" on financial products as they attempt to cope with the rising cost of living.
Some eight per cent of those surveyed by the company said they were most likely to cut back on paying for home contents insurance, while a further three per cent said they would no longer pay for home insurance.
A further two per cent said they were most likely to reduce spending by cutting back on car insurance.
"Life may be getting more expensive, but it is worrying that 48 per cent of Brits are planning to cut back on the policies that are designed to protect them during hard times," Chris Rolland, head of American Express, said.
Defaqto recommended people use an online aggregator to find the best deals if their insurance is up for renewal.
Searching for cheap car insurance online? go to comparethemarket.com.
© Adfero Ltd. The views expressed within the article are entirely those of Adfero Ltd and are not those of the BGL Group.