Daily Insurance Industry News
Daily Insurance Industry News
Wednesday 18th of July 2018
June 25, 2010

Consumers warned against under insurance

by Richard Kilner

Story link: Consumers warned against under insurance

Ian Gosden, managing director of Higos Insurance Services, has urged consumers not to let the recent rise in Insurance Premiumt Tax (IPT) put them off getting adequate coverage.

The IPT rise was less than had been expected, but is coupled with a 2.5% increase in VAT, and may cause some to consider reducing insurance coverage or even going without it entirely in order to save money.

Gosden has warned against shifting insurance into the optional extra category of expenditure, and argued that consumers ought to consider what the consequences would be if misfortune befell them and they were not protected by insurance.

However, there may be savings to be made regarding insurance. Consumers ought to consider whether their present coverage meets their needs, or, indeed, exceeds them.

Increasing the excess can lead to smaller premiums, and by going through a local broker consumers can often make savings whilst retaining adequate coverage.

Earlier this week Kevin Kiernan of Groupama Insurances warned that the double tax rise of IPT and VAT would increase premiums, cutting the national deficit but at a cost to insurers, brokers and policyholders.


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