A recent report has indicated that consumers across the UK could be wasting thousands of pounds on useless insurance policies that they can either never claim on or that cover them for something that they are already covered for by some means or another. The report comes from the consumer group Which? with officials from the group stating that many consumers are wasting money on ‘useless and expensive’ cover which in many cases is simply not needed.
The types of insurance cover that the consumer group is referring to does not include valuable types of cover such as medical insurance, life insurance, and travel insurance, but refers to more obscure policies. This includes payment protection insurance, and ID theft insurance. The consumers group has also warned against taking out extended warranties. Other additional types of cover that the consumer group has warned against include mobile phone insurance, and accidental death and injury cover.
One official from the consumer group stated: “The insurance industry’s favourite phrase is “peace of mind”, but it uses this to justify policies that cost a lot and are almost impossible to claim against. Instead of just blindly following what the salesman says, people should carry out a risk assessment of their own, and make an informed choice about whether they actually need the insurance, and whether it’s worth the premium.”
Officials went on to state that with many of these policies the likelihood of a payout was a slim one, and with others there was a good chance that the consumer was already covered by some means or another, such as through their bank or their credit card.
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