Thousands wasted on useless insuranceNew Which? guide explains which types to avoid
21 January 2008
People could be wasting thousand of pounds on useless and expensive insurance, according to the new Which? Money Saving Handbook.
Although some insurances are must-haves, such as building and contents, life and car insurance, others are often completely unnecessary.
They also have high obstacles to climb and pay out in comparably few cases, warns the Which? Essential Guide.
ID fraud cover
Despite claims of ‘peace of mind’, the majority of what is covered by these insurances is often already protected by legislation or existing insurance policies.
For example, proven ID fraud losses will be met by people’s banks, accidental death and injury may well be covered under standard life insurance, and mobile phones can often be covered under existing contents insurance.
Which? Money Saving Handbook identifies and explains the top five types of insurance to avoid: extended warranties; identity theft cover; payment protection insurance (PPI); mobile phone cover and accidental death and injury cover.
Risk assessment
The author of the Which? Money Saving Handbook is Guardian personal finance journalist Tony Levene.
He says: ‘You can buy insurance to cover yourself against almost any conceivable risk - even alien abduction!
‘The insurance industry’s favourite phrase is ‘peace of mind’, but it uses this to justify policies that cost a lot and are almost impossible to claim against.
‘Instead of just blindly following what the salesman says, people should carry out a risk assessment of their own and make an informed choice about whether they actually need the insurance, and whether it’s worth the premium.’
Bank charges
The Which? Money Saving Handbook is packed full of ideas and advice that will save you time and money.
From help with reclaiming bank charges to exposing the real costs of those bargain flights, this guide shows you how to be smart with your money and how best to protect it.
The Which? Money Saving Handbook can be ordered on 01903 828557 (£10.99, p&p free), through our online bookstore or from bookshops.