Consumers in Britain spend on average £1,500 on insurance premiums every year, yet many are unsure of what cover they have, according to a new study.
Research by Fool.co.uk revealed that 39 per cent of people in the UK do not know at all about the levels or details of the insurance cover they currently own. Home contents insurance was found to be the most popular in the country, with 89 per cent choosing to take out a policy. Motor insurance and building insurance were also favoured with each being taken out by 85 per cent of people.
David Kuo, head of personal finance at Fool.co.uk, commented: “The key to buying insurance is only to insure against risk that you cannot afford to bear. So, if you buy insurance you don’t need then you are wasting money . But if you don’t buy insurance that you do need, then eventually your decision will come back to haunt you.”