Cost of living ‘too high to afford insurance’

Some people are choosing not to buy insurance products because they are too expensive, a report by Sainsbury’s Finance has revealed.

As the cost of living rose by 4.2 per cent between October and November, 13 per cent of the 21.9 million people opting out of insurance cited expense as the main reason.

The research found that 4.7 million have not purchased home contents cover, 4.3 million have not taken out travel insurance for a holiday and 1.2 million admitted to driving without car insurance during the last 12 months.

By not taking out insurance and protecting themselves, individuals are playing “Russian roulette,” remarked Steve Johnson, head of insurance at the firm.

“Those people finding it difficult to afford insurance due to the rising cost in living need to ensure that they shop around for the best cover because this can dramatically reduce price,” he added.

Legal & General claimed that more people have covered their possessions than their life, with 66 per cent purchasing home contents insurance compared to 40 per cent of people who have life insurance.

© Adfero Ltd

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