Brits have revealed their sensible side when it comes to cutting back on insurance to save money, according to moneysupermarket.com, and would only cancel what could be considered as “unnecessary” policies.
- Brits are resisting the temptation to cancel important insurance policies to save cash says moneysupermarket.com
- Over two thirds of Brits (68 per cent) scour the market when it comes to renewing their motor insurance
The research* reveals most Brits looking to curb their spending by cutting back on insurance products would not cancel essential policies such as motor and home insurance – only 4 per cent would cancel either policy. Instead, they are more likely to shun mobile phone or home appliances insurance, with 31 and 26 per cent of respondents respectively stating they would cancel these to save money over the next 12 months.
The research also found a quarter of the Brits who have it (19 per cent) would consider cancelling their Loan Payment Protection Insurance (LPPI) and 6% would cancel Mortgage Payment Protection Insurance (MPPI). 5 per cent would cancel life insurance and 10% would cancel private medical insurance. One in eight (12 per cent) would also consider cancelling their annual travel insurance policy if it meant saving money.
Steve Sweeney, insurance expert at moneysupermarekt.com said: “It is great to see that Brits have wised up to the perils of cancelling important insurance policies. Despite the fact it is illegal to drive a car uninsured, cancelling motor and home insurance will prove a costly false economy. However foregoing standalone cover for mobile phones and home appliances is a great place to start, especially as they can be covered through your home contents insurance from as little as £106 per year with AXA1.
“For Brits considering cancelling LPPI, MPPI or life insurance it is crucial to assess your current situation and work out what cover you need, especially in the current climate; you don’t know what might stop you from working, which could, prevent you from being able to afford costly monthly bills. Similarly, annual travel cover is very often only marginally more expensive than single trip cover, and for jet-setting Brits, buying a single policy every time they travel could mean they end up paying more. Annual worldwide policies for a couple start from as little as £38 per year with Insurewithease compared to £23 for a single trip2, a relatively inexpensive safeguard for stress free travels.”
The research also found money saving Brits’ quest to rein in spending goes even further, with over two thirds of savvy motorists (68 per cent) scouring the market to find the best deal when it comes to renewing their motor insurance – 35 per cent would shop around and swap to the best deal available, while 33 per cent would shop around and approach their provider to see if they could match the best price they found. However, over a fifth (22 per cent) are exposed as missing out when it comes to saving a bundle by not shopping around at renewal time – 13 per cent say they automatically accept the renewal quote from their existing motor insurance provider because they don’t think they can save money by shopping around, while almost one in ten (nine per cent) reveal apathy is rife stating they just can’t be bothered to shop around.
Steve Sweeney continued: “In times like these there is no doubt every penny counts and it is encouraging to see Brits are making every effort to see where savings can be made. Shopping around when it comes to renewing your motor insurance policy is crucial; it is quick and easy to do and could save you hundreds of pounds.”
Notes to Editors:
*Opinium Research carried out an online poll of 2,009 British adults from Tuesday 21st to Friday
24th April 2009. Results have been weighted to nationally representative criteria.
1Home contents insurance including possessions away from home:
Based on a male aged 30. Annual cost to cover a semi-detached house with £35,000 contents and a personal possessions value of £1,000 (M20)
Sourced by www.moneysupermarket.com 21.07.2009
Home contents insurance including accidental damage cover:
Based on a male aged 30. Annual cost to cover a semi-detached house with £35,000 contents and Accidental Damage cover (M20)
Sourced by www.moneysupermarket.com 21.07.2009
2Travel insurance – worldwide annual cover:
*Benefit may be subject to excess
Based on a couple aged 30
Sourced by www.moneysupermarket.com 21.07.2009
Travel insurance – worldwide single trip cover:
*Benefit may be subject to excess
Based on a couple aged 30 – two weeks to USA
Sourced by www.moneysupermarket.com 21.07.2009
