Brits cutting travel and other insurance cover

Five million Britons will reduce spending this year by cutting back on their insurance cover, it was learned in a recent LV= survey. Of that number, 2.2 million, or nearly 45 per cent, said that they would be reducing or cancelling their home insurance cover, in order to reduce their overall spending. The next most likely to be cut is flood risk insurance, with 29 per cent of the respondents in the study indicating that it would be the first aspect of their policy to go. This result was somewhat surprising, given the significant increase in flood damage claims in the past few years, with amounts averaging £17,000 per claim.

John O’Roarke, who is the managing director of LV= general insurance, commented: “Home contents insurance is not legally required but anyone who has suffered a flood or break in will know how important it is to have cover in place.” Motorists who are feeling the impact of the credit crunch are saying that they plan to cancel their comprehensive cover to say on spending. Over the last year, there was a 10 per cent increase in motorists choosing third party fire and theft insurance as opposed to comprehensive cover when they renewed their policies.

According to the findings of the LV= study, this figure will likely increase, as 37 per cent of the respondents stated they planned to cut back on car insurance costs in 2009. Twenty-two per cent have indicated that they will reduce or eliminate travel insurance cover as well. Thanks to www.financemarkets.co.uk for the above quotes, for more information on this article please visit their website.

news source : http://news.carrentals.co.uk/