Do not cut your insurance down

Cutting down on your personal cover appears easy when trying to reduce outgoings, however many insurance policies are used to cover you in times of need.

A survey, undertaken for The Telegaraph, has shown that many of us are planning to cancel insurance policies to save money. 27 per cent of the consumers surveyed, planned to reduce their medical insurance and 17% were considering reduceing pet insurance.

The managing director of AIS, says that it is concerning when consumers cut back on the very policies that offer protection.
Tony Solomon, agrees with this opinion, saying people should think twice before cancelling, because loss of cover may have a damaging affect on their family and themselves in the years to come. Life insurance and critical illness cover are both too important to sacrifice. If the worst happened and you died, or fall seriously ill, then cancelling your cover could leave your family with nowhere to live, he says.

If you cannot afford your premiums you must talk to you insurer.

The BIBA, says that people do not appreciate the overall value of their possessions and the cost of replacing them, if they are stolen or damaged. He advises everyone to take out buildings and contents insurance cover, but to look at the different levels of cover, as they may not need every single item covered. For example, contents insurance costs about 149 pounds a year on average, but you should be able to save 25% by cancelling accidental damage and personal possessions cover.

Pet insurance may appear to be unnecessary, but without cover you may struggle to pay an expensive vets bill in an emergency. So which policies are you safe to cancel? Referring to medical cover, Solomon says that many people have medical insurance with their employment. However, protection of your family is important. Therefore, it would be advisable to choose CIIC, which pays out a lump sum, rather than mortgage cover or medical insurance.