Millions sold 'useless' insurance to boost company profits

Staff writer
File photo dated 07/01/14 of vehicles travelling along a motorway. One in nine (11\%) vehicles on UK motorways drift out of their lanes, according to new research.
File photo dated 07/01/14 of vehicles travelling along a motorway. One in nine (11\%) vehicles on UK motorways drift out of their lanes, according to new research.

Customers across the country are being misled into buying useless or inappropriate insurance products, a consumer group has claimed. The policies could be home, travel or car insurance, and in many cases were found to be misleading or incomprehensible.

The survey, by pressure group Fairer Finance UK, accused insurers of imposing payout limits that are lower than the excess claim in some cases. For example, almost half of UK car insurers offering key replacement cover have a payout limit that is lower than the average cost to replace them – making it useless to claim.

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