Insurance cancellations rise due to recession
The Association of British Insurers has revealed startling figures which show that many people in the UK are looking towards their insurance policies as a means of saving money. It was revealed that 22% have either cancelled or not renewed their home contents insurance over the last 12 months purely as a means of reducing their outgoings. A further 17% no longer have building insurance which is another area that could prove very costly in the event of an accident.
While the situation across the UK looks bleak it is even worse in Scotland with a significant 28% either cancelling or not renewing their home insurance cover and 21% now without buildings insurance. While it was obvious that a number of UK consumers would look towards their insurance policies as a means of cutting back on their expenses, there are serious concerns that the short-term gains could turn into long term problems. The old philosophy of "it will never happen to me" is one which is growing credence across UK but one which has significant risks attached!
On the plus side, it must be said that the ongoing recession has prompted more and more people to look around for their home contents and buildings insurance rather than automatically reapply to their existing insurance company. The Internet has obviously had a massive impact in this particular area with a growing number of comparison websites proving more and more popular.
Share this..
Related stories
Japanese central bank reduces base rates
In possibly a sign of things to come for the worldwide economy it has been revealed that the Japanese central bank has further reduced base rates in the country to between 0% and 0.1% against a previous target of 0.1%. In effect we are back to the days of 0% base rates in Japan which followed the disastrous slump in the economy in the 1980s/90s which saw one of the longest-running economic downtur...
Read MoreUK drivers hit by cost of parking
The cost of car-parking for UK drivers has rocketed in the past six years, according to Direct Line car insurance.Research by the firm shows that the average cost of car-parking has risen by an average of 25 per cent across the country, with motorists in Berkhamsted in Hertfordshire, Ponteland in Northumberland and St Mary's Bay in Kent facing increases of 90 per cent in charges since 2000.Perhaps...
Read MoreMervyn King Fires The First Warning Shots of Recession
Mervyn King, the governor of the Bank of England has fired the first warning shots that the UK is heading for a recession. In a very honest assessment of the UK economy he suggested that the country is in a worse situation than at any time since the Second World War. However there was more doom and gloom to follow....
In line with the views of many experts in the City he has confi...
With profits bond holders feeling the pain
For many years the with profits bond market has been a godsend for investors in the UK, offering the opportunity to smooth out the ups and downs of the UK investment markets and ultimately crystallise a decent return at the end. However, while the likes of Engage Mutual and National Provident Life have already confirmed that terminal bonuses will be reduced to 0% we have today seen Phoenix join th...
Read MoreIs Virgin Media struggling?
While there has been some concern about the high levels of debt with Richard Branson's Virgin Media operation, today's announcement of a refinancing should be well-received by investors considering the current economic climate. The company has been able to postpone repayment of £4.3 billion of debt until 2012 which gives it an extra three years to pay back the money. The group had been set to rep...
Read More