Insurance News Archive
Contents insurance cut back during recession
Families facing the squeeze during the current economic downturn are choosing to cut back on their household contents insurance, it has been claimed.
According to figures from the Association of British Insurers (ABI), a growing number of people are choosing to cancel their contents insurance policies in order to help free up some money to pay for other essentials.
The poll found 22 per cent of the 2,000 people surveyed have stopped paying their home contents insurance in the past year in an effort to save money.
However, the ABI warned that such a move could be simply a "false economy".
Stephen Haddrill, the ABI's director general, explained: "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."
The study also revealed that 17 per cent of those polled had also stopped paying for buildings insurance because of the need to cut back on outgoings.
Mr Haddrill added that the insurance market remains "very competitive", meaning people should be able to find affordable quotes if they look hard enough.
Meanwhile, it has been suggested that the UK housing market could be set to enjoy some rare cheer.
New figures from the Royal Institution of Chartered Surveyors have suggested interest could be returning to the property market, which could help boost the overall economy.
09 Jun 2009
