Large Cuts In Entertainmnent, Travel And Food Budget Planned By Many

Some 70% of Brits are looking to save money this year by making large cuts in their outgoings, including their entertainment, travel and food costs.

According to new research by Allianz, this year is set to be the year of frugal living with the majority of Brits looking to save money on their outgoings.

The top 5 areas for finanical savings are

• Entertainment budget
• Bills by switching provider
• Food budget
• Travel costs
• Internet / Phone / TV package

As Gareth McChesney, Head of Home and Motor Portfolio Management, Allianz UK, comments though “People will naturally prioritise what is important to them but there is a danger that by cutting in the wrong places Brits could be left even more at risk.”

With the financial pressures already felt as a result of the recession, over half of Brits have sought to save money on insurance, including their car and home insurance. Whilst many of these have achieved this by shopping around to get the best deal, others have looked at reducing individual item cover, removing extras such as legal cover or a courtesy car and increasing the voluntary excess on their policy.

Allianz Insurance is urging Brits to look beyond immediate cuts and to think carefully before deciding to cut their spend on insurance protection, as cutting insurance could leave  their treasured possessions  and even their homes under insured or perhaps not insured at all.

Gareth McChesney, continues: “When looking to make household cuts people will naturally prioritise what is important to them. However, there is a real danger that by cutting costs and being underinsured, whether willingly or not, people could find themselves facing a bigger financial headache and bill in the long run. This is particularly the case if they are hit by an unfortunate event for which they could have had adequate insurance protection.

MoneyHighStreet.com comment: Of course saving money must take a high priority for many and people must prioritise where they can best save within their own lives. We though very much support the message from Allianz that being underinsured is really not the way to go. You need to look very carefully at how, and indeed if, you can save money on insurance without putting yourself in a vulnerable position.

Insurance is bought either because it is legally required, as with car insurance, or to provide protection should you or your possessions, including your home, suffer an unfortunate event.

Should this happen your insurance cover needs to be adequate to allow you to make a claim. If you are not insured or underinsured you may well face a bigger financial headache in the long run.

You need to buy insurance cover that meets your needs. Focus on the policy features and not just on buying the cheapest insurance.