Do not be left short on cover because you chose a cheap policy

A recent survey carried out to see if the current economic climate was have an effect on insurance sales showed that almost 75 per cent of consumers searching for insurance cover were choosing their policy based on which one was cheapest, rather than the level of cover it offers.

Experts have said that the use of comparison websites has increased dramatically over the least decade and although very helpful, people should not automatically go for the cheapest deal.

Cheap policies will not always have the correct amount of cover leaving some consumers facing a nasty surprise when they go to make a claim. Up to two-thirds of homeowners are underestimating the value of the things they own, leaving them at risk of having insufficient home insurance in place should they become victims of a burglary.

It has been revealed that as many as 22 per cent of customers are put off making a claim because of the large excess on the policy not making it worth it and 14 per cent of people do not bother making claims because it is too much trouble.

There are a number of cheap insurance policies out on the market, but please remember to check that the cover you arrange is the right policy for you and do not just accept it because it is the least expensive. Always remember when reading a policy to check the small print for information about any add-on fees and the levels of excess invloved.