Think twice before purchasing additional insurance on purchases
December 19, 2007
In the run up to Christmas retailers in the UK are once again pulling out all the stops in order to try and increase revenue from the millions of Christmas shoppers that are hitting the high streets.
One of the ways in which retailers are doing this is through trying to sell expensive insurance policies to shoppers that are purchasing gifts, and the high cost of these policies can really bump up the cost of any purchases that you make. Retailers are even trying to sell these pricey policies on inexpensive gifts that cost around £5.
According to figures the cost of this cover can come to a third of the cost of the item, so you end up paying far more. The policies are sold by sales staff who inform consumers that they will receive additional protection in the event that the item breaks down or gets damaged within a certain time period. However, for many consumers taking out this costly additional cover can prove fruitless, as there may already be adequate cover in place.
Consumers are being urged to think twice before being persuaded to take out this expensive insurance cover. There are a number of considerations that should be taken into account by the consumer. Firstly you should determine whether the value of the purchase warrants the extra cover, as if the item is very cheap then it is probably worth taking the risk and replacing it altogether if it gets damaged rather than paying for additional cover that you may not every use.
Other considerations that need to be taken into account are whether the items may already have extra cover, as you may find that your items are covered under your home insurance. If you have purchased the items on your credit card you will also benefit from additional cover under the Consumer Credit Act, Section 75.
Alan Wright
19th December 2007
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