Brits cutting back on insurance cover

Five million Brits will reduce expenses by cutting back on insurance cover this year, according to a recent survey.

Travel Insurance News - 26/02/2009

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In the survey conducted by LV= it was found that 2.2 million households were considering reducing or cancelling their home insurance to reduce spending.

The type of insurance most likely to be cut is flood risk insurance, with 29 per cent of the respondents indicating that it would be the first to go. This result was despite the fact that flood claims have risen dramatically in recent years, with the average claim cost being around £17,000.

John O’Roarke, the LV= general insurance managing director, said: “Home contents insurance is not legally required but anyone who has suffered a flood or break in will know how important it is to have cover in place.”

Motorists feeling the credit crunch said they would cancel their comprehensive cover in order to save on costs. In 2008, 10 per cent more drivers chose the third party fire and theft option rather than comprehensive cover when renewing their policies.

According to the LV= study, this percentage is about to increase, as 37 per cent of respondents declared that they would cut back on their car insurance spending this year.

Travel cover was also listed, with 22 per cent of those polled saying that they would either reduce or eliminate their travel insurance.

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