With the onset of the recession, many people are looking to cut back on their outgoings. However, the British Insurance Brokers Association (BIBA) urges people to think carefully when it comes to insurance .
Graeme Trudgill, technical and corporate affairs executive at the association, said that the decision to curtail insurance is not surprising when considering the current economic climate, but he warns that many people are cutting back on the wrong things. He said: “At the end of the day, you know whether you’ve got the right policy for you at the right price. It’s the difference between the ‘needs to have’ and the ‘nice to have’.”
Mr Trudgill explained that having car insurance is a legal requirement, while banks may demand that homeowners have buildings insurance if they are to sell them a mortgage . The comments follow a report by BIBA which revealed that 23 per cent of insurance brokers have seen customers reduce their level of cover, with 96 per cent of affected policies relating to home and car insurance .