Over five million Brits are planning cutbacks on their level of insurance in order to cope with the rising cost of living.
According to insurer LV=, these Brits are aiming to save an average of £125 over the course of the year, working out at just £10.41 per month.
This is a minor saving to make, considering they are leaving themselves liable for massive bills should disaster strike.
Home cover top of the list
Of the planned cutbacks, home insurance is first on the list for most, with 2.2 million adults (44% of the total) looking to reduce or cancel their policies in the coming year.
The most popular element of home cover to cut is flood insurance, with 29% of people saying this would top their list.
LV= believes this is a risky strategy, with the number of flood claims increasing dramatically in the last three years due to bad weather and costing an average of nearly £17,000 each time.
Car, travel cover also on the radar
Second on the list of likely cancellations is car insurance, with 37% reportedly considering downgrading their car cover.
A further 22% are looking to cut back on travel insurance, while nearly one in five (18%) want to cancel their pet cover.
“It's understandable that people are looking for ways in which they can reduce their outgoings,” says LV= managing director John O'Roarke.
“However, cancelling or reducing essential insurance cover could result in many people finding themselves seriously out of pocket if something untoward happens.
"I would just urge those looking to save a few pounds to consider the wider implications of leaving themselves without valuable insurance cover this year, as it is at time likes these, when money is short, that insurance becomes ever more important."
Save smarter
Rather than leaving yourself desperately short of vital cover, a far better money-saving strategy is to target waste elsewhere on your monthly outlays.
Whether it’s weekly drinks with work mates or that top-of-the-line satellite TV package, we all spend a fair portion of our monthly income on things that, while important to us, are nonetheless avoidable.
Unfortunately, if you’re still struggling to make ends meet, then these “luxury” purchases are the only place to target for further cutbacks.
Read our articles on money-saving and budgeting, and you’ll be able to make far more significant reductions to your monthly bills without having to cancel your insurance policies.
