Consumers must make sure they don't cut back on 'essential' insurance
26th June 2008
An independent advice site has warned that consumers who fail to insure themselves against risks that they cannot afford are making an expensive mistake.
Fool.co.uk has suggested that as consumers attempt to make savings in the credit crunch, they should be sure not to cut corners in the wrong places.
According to Fool, motor insurance is one form of protection car owners cannot do without as is building insurance for homeowners.
David Kuo, head of personal finance at the website, said: "If you buy insurance you don’t need then you are wasting money. But if you don't buy insurance that you do need, then eventually your decision will come back to haunt you."
Mr Kuo continued: "The single most important question you need to ask yourself when taking out motor insurance is whether you can afford to bear the risk."
Research conducted by YouGov found that 40 per cent of people said they would not be making any cuts in their insurance spending over the next 12 months.
Of those questioned, one in five consumers concerned about the credit crunch said they would cut back on Payment Protection Insurance (PPI).