Breakdown cover axed to save cash

Hard-pressed consumers are cancelling their breakdown cover in a bid to save some cash, a survey has found.

Almost half of Britons (42%) have cancelled a policy, such as a breakdown policy, insurance or pension contributions, in the face of the financial squeeze, research from uSwitch.com found.

That leaves a possible 19 million people with less financial security, or none at all, as they try to claw back some cash.

Of those who have scrapped policies, 15% axed their car breakdown cover and the same number dropped private health and dental insurance. Some 13% cancelled a life insurance policy.

Home contents insurance seems to be more of a necessity, with only 6% saving money by ditching that cover. Likewise, mortgage payment protection insurance is also one of the least likely to be dropped, with only 7% of those who have cut commitments choosing to ditch it.

Some 12% who have looked to save money are not making pension contributions, which the website experts warned could be a long-term risk.

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