Insurance policies offer 'poor value'

Martin Hickman
Thursday 03 June 2010 19:00 EDT
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People are wasting money by buying too much insurance, a leading consumer organisation warns today.

Which? placed insurance against mobile phone theft and identity fraud, extended warranties and payment protection insurance on a list of 10 "useless financial products".

It advised that most household contents policies covered mobile phones and banks were liable for most losses through ID fraud.

Extended warranties sold by shops could cost half as much as the products they covered, while people worried about falling ill or being made redundant should opt for cheaper income protection policies.

"Packaged" bank accounts that provide extras such as commission-free travel money were often not worth the monthly fee – customers could save up to £300 a year by moving to a good value standard current account, Which? said.

Other products that were considered poor value were "with profits" and "structured" investment policies, secured loans, store cards and debt management plans.

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