Britons are risking future debt management problems by cutting down on their insurance, it has been warned.
Graeme Trudgill, technical and corporate affairs executive for the British Insurance Brokers’ Association (Biba), revealed that many members have seen customers scaling back on financial protection.
This places them in danger of facing large costs if they have an accident, he suggested, explaining that clients are opting for large excesses in order to reduce premium prices.
Mr Trudgill stated that some people are going to incur “a hefty bill” if they have to claim on a policy with a big excess.
“They might be able to afford the first £100 pounds for an accident, but can they afford £500?” he asked.
Around one-fifth of Biba brokers have recorded personal lines customers lowering their level of insurance, a survey by the body revealed, with 29 per cent seeing a reduction in add-ons and non-essential cover.
By Jamie Price