Around 7% of customers have already cut back on insurance and a further 7% are considering cutting back in the future to make savings, according to the Cost of Living Consumer Behaviour Tracker published by Consumer Intelligence.

Worryingly, home contents and buildings cover is most likely to be cut – with over a third (35%) of those who have cancelled insurance choosing to ditch this important cover.

Among those who have already cut back, 67% say they have switched some of their policies to cheaper alternatives, while 43% have opted to cancel some policies completely.

Of those who have cancelled policies, home buildings and contents insurance, pet insurance
and appliance insurance are the top three cancelled policies.

Consumer Intelligence’s head of consumer strategy, Catherine Carey, said: “We’ve been tracking the cost of living and the impact on consumer behavior over several months, and it’s clear that consumers are looking for as many ways as possible to save money. These latest results show a worrying trend, that in a bid to do as much as they can to save money, a high number of consumers are cancelling insurance policies or switching to a cheaper deal.

“This is extremely concerning, especially when it comes to home buildings insurance which, although it isn’t a legal requirement, is generally required by mortgage lenders and should the worst happen could result in enormous financial and personal loss.”