Which? exposes “useless and expensive” policies
A new report by consumer activist group Which? sates that consumers are wasting thousands of pounds on useless and expensive insurance policies.
The report recognises that some forms of insurance, such as building and contents, life and car insurance, are essential but suggests that many other forms of cover are unnecessary.
The handbook’s author, Tony Levene, states: “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.”
According to the Money Saving Handbook, making a claim against some insurance policies can be difficult, while other products offer protection already afforded by current legislation or consumers’ existing policies.
The handbook puts identity theft insurance in this category, as the losses covered are already met by the banks.
In addition, accidental death and injury cover are frequently included with standard life insurance and stand-alone mobile phone insurance is often included in contents cover.
Payment protection insurance, which is supposed to cover debt repayment for people who fall ill or lose their job, was also cited as an insurance product to avoid.
This type of policy is currently the subject of regulatory scrutiny because of a high incidence of mis-selling and excessive premiums.
Category: Insurance News
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