Simon Read: Insurance policies do not belong at the shop checkout

Simon Read
Friday 07 March 2014 18:00 EST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Next week the City watchdog will publish the outcome of its investigation into the murky world of insurance add-ons. I hope that the Financial Conduct Authority (FCA) will ban the sale of the expensive cover that is flogged when you're buying other items.

For instance, internet retailers encourage us to take out insurance when shopping online. Meanwhile, high-street companies always try and make shoppers buy extended warranties or other peace-of-mind products when they are snapping up a television or washing machine.

The worry is that many of these insurance policies are expensive or unnecessary. We're sold them by a tick or signature and told that they cost a few quid a week – but actually, many are horribly expensive.

There is nothing wrong with buying insurance to cover gadget breakdown or home emergencies, but the cover should be bought separately from a third-party insurer that does not have vested interest at the point of sale.

Poeple need to make an informed decision about whether they need the cover or, indeed, whether they can afford it. Rules should prevent retailers from selling it.

Instead it should be a buyer's decision, driven by a need, rather than a company's desire to boost its profits.

I gather the FCA will release the results of its study early next week. I hope to report back with a positive outcome for consumers.

s.read@independent.co.uk

Twitter: @simonnread

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in