Buying the wrong insurance has cost UK consumers £750 million in the last 12 months, according to Tesco Personal Finance’s latest research.

A survey among consumers by Tesco showed one million Britons who have had claims turned down in the last 12 months have lost out on £736 on average. Many policy-holders were mistaken about what they were covered for under their car, home or travel insurance policy. As a result, 82% said the experience of having a claim rejected had changed the way they would purchase insurance in the future. 

These results are not so surprising, however, considering Tesco also found 55% of consumers do no more than skim over the descriptions of products and services they buy. Tellingly, 58% admit to having purchased an unsuitable product or service in the last year.  

Peter Dingle, managing director of TescoCompare.com, said:  “It is worrying that so many of us have made mistakes in the past 12 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.”