Britons confused over insurance cover

by Gill Montia

Story link: Britons confused over insurance cover

The average British consumer spends £1,550 on insurance policies each year but according to a new survey by financial website, Fool.co.uk, substantial numbers of people have little idea how much cover their money has bought.

Thirty-nine per cent of respondents, or one in 25, had over twelve insurance policies in place and found it difficult to keep track of what this actually meant in terms of the cover in place.

Twenty-three per cent of those questioned said they preferred to insure themselves by saving enough to cover the odd mishap, while 10% thought insurance was a waste of money.

Meanwhile, six per cent of participants said they tried to insure against as many types of loss as possible.

Home insurance was seen as essential by the majority, with 89% opting to buy this type of cover.

Car and buildings insurance took second place with 85% of respondents awarding them priority.

The research also revealed that respondents were more likely to insure their pets than their mobile phones.

Head of personal finance at Fool.co.uk, David Kuo, suggests a simple remedy for those confused by insurance opportunities.

He recommends that consumers should always have insurance in place for risks that they cannot afford to bear.