Home and motor insurance warning issued by Biba

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Home and motor insurance warning issued by Biba

Tue 12th May 2009

Reducing home and motor insurance could be putting Britons at financial risk, the British Insurance Brokers' Association (Biba) has warned.

Research by the association shows that 29 per cent of non-commercial insurance brokers have seen a fall in levels of non-essential cover taken out by customers.

Another 16 per cent have witnessed the sums that people are willing to insure decline, while the same percentage report that many clients are increasing excesses.

The majority of policies affected are home and motor insurance, accounting for 96 per cent of the reported changes.

Eric Galbraith, chief executive at Biba, said that people should not immediately reduce their insurance cover when finances become tighter.

"We continue to promote the benefits of brokers and are warning consumers about the dangers of reducing cover without guidance from a broker," he stated.

Last month, Biba warned travellers due to head to areas affected by swine flu that not all travel insurance policies will cover for cancellation due to pandemics.

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