Don’t cancel your insurance cover – look for a better deal!
This was the recent warning from the Association of British Insurers (ABI) highlighting the dangers for consumers of cancelling life insurance and home insurance cover, as they tighten their belts in the current financial climate.
New figures released today by the ABI show that in the past year, 13% of people have cancelled their life insurance cover in a bid to cut their spending.
A further 21% have said they are ‘seriously considering’ reducing the amount they save, or stopping saving altogether, while, at the same time, 45% of people would like to be able to save more.
Nearly a quarter of people have cancelled or not renewed home contents insurance, and 17% have cancelled or not renewed building contents cover.
As a result of such financial economy measures, nearly half of those surveyed (49%) said that they were now concerned at their inability to cope with an unexpected event which their insurance would have covered.
Shop around for your insurance cover!
The ABI in a statement pointed out that ‘the insurance market remains very competitive, so shopping around can help you get a good deal, while ensuring that you are not at the mercy of the unexpected.â€
Ditching insurance or reducing cover should only be ‘a last resort’, the ABI claimed.
ABI survey was carried out at the beginning of this month, using a sample group of 2.072 adults sourced throughout the UK.
