Insurance: The 'need to have' and the 'nice to have'

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Insurance: The 'need to have' and the 'nice to have'

Wed 13th May 2009

The onset of the recession may mean that many people are looking to cut outgoings - but they should think carefully when it comes to insurance, the British Insurance Brokers' Association (Biba) advises.

Graeme Trudgill, technical and corporate affairs executive at the association, said that the decision to reduce insurance is unsurprising given the economic climate, but warned that many people are cutting back on the wrong things.

"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'," he said.

For example, 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 that shows 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.

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