Which? Slams Useless Insurance Cover

Insurance Cover

Which? has slammed useless insurance cover such as extended warranties and indentity theft cover.

In its Money Saving Handbook, Which? says although some types of insurance such as building and contents, life insurance and car insurance are necessary, other types are often unnecessary and pay out in relatively few cases.  According to the guide, the top five types of insurance to avoid are extended warranties, identify theft cover, payment protection insurance, mobile phone cover and accidental death and injury cover.  

Our view

We fundamentally agree with Which? on this one.  The majority of what is covered by these additional types of insurance is often already protected by consumer rights legislation, general guarantees and warranties or existing insurance policies.  For example, proven ID fraud losses are generally met by your bankers, accidental death and injury may be covered under normal life insurance plans or income protection schemes and mobile phone insurance is often be covered under existing ‘all risks’ contents insurance.  

We suggest you review your existing policies before making any purchases.

Useful links:

Learn more about Life insurance,  Income protection and related topics in the Life Cover Adviser Channel 

Request expert financial advice now

Purchase guidance on financial planning in the Money Shop 

Back to News Summary