Reduced home insurance or car insurance cover could be devastating

BIBA (British Insurance Brokers’ Association) has warned that customers reducing theirhome insurance or car insurance cover to save money during the recession could be devastating.

According to BIBA research, over 20% of insurance brokers have found that cutomers taking out car insurance or home insurance have reduced their level of insurance cover during the recession.

BIBA Chief Executive, Eric Gailbraith, said ‘The economic downturn generates an increased focus on cost’ and added we ‘are warning consumers about the dangers of reducing cover without guidance from a broker.’

Customers are reducing their home or car insurance cover primarily by

• reducing the sums insured
• increasing the excesses
• reducing non-essential cover and add-ons

Customers need to be very careful about reducing their home insurance or car insurance cover.

Clearly it is important that you have insurance that meets your needs, otherwise should you need to make a claim you face the possibility of it not being met, partially or in full, by your insurer.

Insurance brokers can provide you with assistance or there are many websites that you can use to get an insurance quote.

As well as companies such as Direct Line or Norwich Union (soon to be AVIVA), there are insurance comparison sites, such as GoCompare and MoneySupermarket.