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Daily Insurance Industry News
Thursday 16th of August 2018
May 23, 2011

Incahoot warns on cheap insurance

by Brian Turner

Story link: Incahoot warns on cheap insurance

According to a new survey commissioned by group-buying community incahoot.com, Britain’s obsession with cheap insurance has gone too far, leaving too many people without proper cover, say experts.

The latest independent research reveals that in a bid to save money, three quarters of the nation now choose an insurance deal based purely on price.

Yet two thirds of us aren’t satisfied with the process of claiming on our insurance or with the size of our payouts, according to the study by group buying community incahoot.com.

“The cheapest insurance is often not the best value insurance,” said John Evans from Incahoot, the free online community that aims to get the best money-saving deals for its members on core household bills.

The study for Incahoot by Opinion Matters also reveals that less than half of insurance buyers are concerned about the details in the policy they choose.

But when it comes to making a claim, 22 per cent are discouraged because of the excess on their policy and 14 per cent don’t bother at all because ‘it’s too much hassle’.

Word of mouth is often the way good products are chosen. But such is the determination to find the cheapest insurance deal, only 7.4 per cent of us choose insurance based on a personal recommendation and just four per cent are influenced by advice from a broker.

Said Evans: “Of course price is important, but with value insurance as most things, it’s rarely the whole story. Merely comparing prices could be a short cut you’ll regret. ”

Incahoot’s insurance will be provided through a broker to ensure that people get a policy that is right for them – rather than choosing one simply because it offers the lowest price upfront.

Incahoot will offer building and contents, health, and impaired travel insurance through the broker from 21 May while travel and mobile phone insurance (available when purchasing a mobile phone at Incahoot.com) will be available online from early June.

You can find out more about Incahoot’s insurance offers here.

 

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