No Insurance? Wise Option?

No Insurance? Wise Option?

Wed 17th Jun 2009

Can we afford to self insure in the current climate?

Skimping on insurance is costly in the event of a burglary or a crash, say bosses

Around 22% of people said they had either cancelled or not renewed their home contents cover during the past 12 months.

And 17% no longer have buildings insurance, according to the Association of British Insurers.

The figures are even starker among people living in Scotland, with 28% cancelling or not renewing their contents cover and 21% giving up buildings insurance.

A further 13% of people across the whole country have also ditched their life insurance as they try to cut down on their outgoings.

The ABI, which released the figures ahead of its biennial conference, warned that cutting back on insurance was a false economy.

Stephen Haddrill, the ABI's director general, said: "In these uncertain times, insurance provides a vital financial safety net to steer individuals and families through the recession, as well as helping to provide long-term security.

"Ditching insurance or reducing your cover must only be a last resort."

The research also found 21% of people are seriously considering reducing the amount they save, or stopping saving altogether.

Around 45% of people said they wanted to save more but could not do so, while 49% said they worried about their ability to cope with an unexpected event, such as a burglary.

 



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