People in debt ‘should shop around’

People concerned about money in the recession should look around for the best deals on items such as car and home insurance, figures from a price comparison website suggest.

According to data from Confused.com, 25 per cent of people have cancelled policies in order to save money and prevent themselves from possibly falling into debt.

Regarding this trend, Darren Black, head of home insurance with Confused.com, remarked that it would appear that loyalty does not always pay.

“It’s a myth that a loyal customer will get a good or better deal. This just isn’t true. It’s never been easier to search the market for insurance; the market is open to everybody,” he said.

Confused.com’s findings also reveal that homeowners are suffering the most in this respect, with 11.7 million failing to review their insurance policies within the last two years – the equivalent of £508 million being wasted in 12 months.

These statistics follow a recent statement from independent service Which? Switch that recommended saving money on energy bills by changing suppliers.

By Sarah Adie