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Millions of people forced to cancel insurance policies they can’t afford

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Millions of people are being forced to cancel their insurance policies because they can no longer afford them, shocking new research reveals.

A study by finance company Premium Credit found 38% of people have cancelled one or more insurance policies over the past three years, and 56% of these cancellations occurred in the past 12 months.

The two main reasons people gave for cancelling their insurance were rising premiums and a fall in income.

The most popular forms of insurance to cancel were pet and travel, followed by health and life.

Worryingly, 10% of people have got rid of their car insurance despite around a quarter admitting to still having a car.

The research also found that 51% of people who have a mortgage don’t have home insurance, which most lenders require them to have.

Adam Morghem, of Premium Credit, said: “It is shocking to see so many people missing out on vital, sometimes legally necessary cover due to cost or concerns over payments. This is leaving millions exposed to unnecessary risks and potentially even greater costs further down the line.”

The study predicts that over the next 12 months, some 12 million people are considering cancelling insurance policies.

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