Despite buying insurance to protect themselves, consumers have lost in the region of £750 million every year by getting the wrong insurance policy for their requirements or circumstances, so they’re not covered when they make a claim, according to research from Tesco Compare.com.

Brits believe they have lost out as a result of having a car, home or travel insurance policy that does not meet their needs and in the last 12 months they have typically lost £736 each because they have had a claim turned down.

In light of the survey’s findings, it comes as little surprise that people end up without the cover they need, because more than half do no more than skim over the policy summary before buying insurance, which has resulted in 58 per cent admitting that they have bought a product or service in the last 12 months that wasn’t right for them. Of those that have not read their document thoroughly in the past, 82 per cent said that their attitudes have changed and will alter how they buy insurance and similar products in the future.

Commenting on the research, Peter Dingle, Managing Director at TescoCompare.com said: “It is worrying that so many of us have made mistakes in the past twelve months. With the pace of modern life, many perhaps simply do not have the time to make sure they understand what they are buying.

“Insurance polices can be complicated, and it is not surprising that so many people find themselves in a situation where they thought they were covered when in fact they weren’t.”

Furthermore, Sainsbury’s Home Insurance has found that a quarter of homeowners are neglecting to shop around for competitive protection for their property, with 43 per cent simply renewing their existing policy and 16 per cent only getting one other quote when it comes to renewal time for buildings or contents insurance.

Steve Johnson, head of home insurance at Sainsbury’s, said: “Although it may seem tempting to just stick with your renewal quote or the first quote you get, it really is essential to shop around.

“Despite the fact that home insurance premiums are reportedly on the rise, products vary dramatically and there are some cracking deals out there if people take the time to evaluate what’s on offer.”

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