A fortune being wasted on insurance cover
January 30, 2008
According to a leading consumer group thousands of pounds is often wasted by consumers on taking out insurance policies that is costly and does not benefit them. The consumer body Which? Said that many people fork out a fortune on ‘useless and expensive insurance cover’, which in many cases is not even necessary.
Officials from Which? stated that there are obviously some types of insurance cover that are needed, such as life insurance cover, home insurance, and car insurance. However, there are also a number of other types of cover that are not necessary at all.
Amongst the types of cover that Which? officials have highlighted as being unnecessary are extended warranties, payment protection insurance, and ID theft insurance. In fact the consumer body has advised consumers not to take out insurance such as this and other types of cover such as mobile phone insurance, and accidental death and injury cover. However, officials from the insurance industry have stated that consumers need to make up their own minds with regards to whether they have adequate insurance cover to protect them against a certain situation or event.
Officials from Which? stated that often people that take out insurance policies such as the ones that it is advising against are already covered for the situation or event through some other means, and often do not realise. Others purchase insurance policies that are unlikely to pay out and that they are never going to benefit from.
One official from Which? said: “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. Instead of just blindly 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.”
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