Thousands of pounds wasted on insurance policies

According to research from consumer group, Which?, Britons are wasting money by paying for insurance policies that they do not need.

The study showed that consumers often purchase overpriced insurance policies that are unnecessary, hard to claim and are rarely paid out.

For example, some policies offer cover against identity fraud but this can be unnecessary as losses may be paid by people’s banks if the fraud can be proven. Furthermore, those purchasing mobile phone insurance should be aware that their handset is covered under their home or contents insurance policy.

Tony Levene of Which? explains that the insurance industry’s favourite phrase is ‘peace of mind’, but it uses this to justify policies that cost a lot and are almost impossible to claim against.

Mr Levene added instead of just following what the salesman says, people should carry out a risk assessment of their own and make an informed choice about whether they actually need the insurance and whether it’s worth the premium.

Mr Levene continues that some types of insurance including building and contents, life and car insurance are actually necessary or obligatory and it is advised comparing insurance deals to find those that cover all your needs rather than taking out separate policies and paying twice for the same type of insurance.

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