One in four people cancel their home insurance due to recession

Research published by the Association of British Insurers published a report on 9th June revealed that almost 25% of people admit they have cancelled or not renewed their home contents insurance in a bid to survive the recession.

The study was conducted by YouGov on behalf of the ABI and involved 2,000 adults across the UK. It reveals the extent to which policies are either not being renewed or cancelled by households desperate to save money.

Home owners are also abandoning other insurances, despite the fear of being unable to cope with the unexpected being the biggest single concern for families in the recession, with nearly half (49%) of those surveyed said that they currently worry about their in ability to cope with a sudden event, such as a burglary.

Stephen Haddrill, the ABI's Director General, said:

"Cutting back on insurance protection is a false economy. 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 insurance market remains very competitive, so shopping around can help you get a good deal, while ensuring that you are not at the mercy of the unexpected. Ditching insurance or reducing your cover must only be a last resort." 

3 July 2009