Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 22nd of May 2019
January 24, 2008

Cosumers Wasting Thousands, Says Which?

by Stewart Douglas

Story link: Cosumers Wasting Thousands, Says Which?

The average consumer could be wasting thousands of pounds every year on insurance products that aren’t really worthwhile, according to consumer group Which? today, which suggested that many of the mainstream policies offered by insurers may not provide value for money and may not in fact prove to be the wise move.

Which? argued that certain insurance cover is pointless in most circumstances, such as payment protection insurance and ID theft insurance, neither of which it argued provide good value for money for the consumer when weighing up the likelihood of any need to claim against the cost of the policy.

Which? gave a strong indicator that consumers should refrain from buying these types of cover, including mobile phone insurance, which may not turn out to be worthwhile in the long run, and suggested that many who would otherwise consider taking out these policies would be able to financially cover any loss on their own in the unlikely event of occurrence.

Whilst it’s report today was condemning, the group also added that certain insurance products were absolutely vital such as buildings insurance, life cover and car insurance, despite rigorous defence from the industry itself on the products it offers to consumer buyers.

The consumer group urged buyers to consider on the merits of each policy whether the cover would provide good value for money rather than automatically buying in to the “peace of mind” argument put forward by the industry on certain “pointless” policies, such as ID theft insurance which covers a service automatically provided by retail banks.

The industry today fought back in defence of its cover, urging consumers to think carefully about their current circumstances and weigh up what they would do should the worst happen in relation to the insured subject.

 

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