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It pays to be insured
A recent survey by the Association of British Insurers found that almost a quarter of people have cancelled their home contents insurance and others have cancelled their life insurance to save money.
While it's always a good idea to cut back on any unnecessary spending, it is important to stop and think about whether spending a small amount on the premium is better than the risk of having to pay out thousands of pounds of your own money if trouble strikes.
For example, the average home now contains over £40,000 of clothes, gadgets, electronics and furniture.
Although you may feel that you're unlikely to be burgled, or suffer fire or flood damage, would you be able to afford to replace all your essential contents if you did?
And if where you live is at risk of flooding and you let your policy lapse, you may find it harder to get cover when you try to restart it later on.
Life insurance is only required if you have someone who relies on you financially.
But the older you are when you start it the more expensive it will be, so consider this before deciding not to renew a policy.
If you can't afford your existing insurance, rather than cancelling it, talk to your insurer to see if you can get a lower level of cover that still meets your needs for a smaller premium.
Or shop around for a better deal using comparison tables.
These days you can get insurance to cover almost anything, including mobile phones, dental or vet's bills, legal expenses and long-term care.
If you take care to make sure it meets your needs, you can save yourself a lot of future worry.
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