What's that?
Priced out - Poor people giving up insurance due to "poverty premium".
Giving up everything, more like.
'You're still eating fruit pastilles, boss.'
Not for long, Voice.
Anyway ...
Over half (55%) of people in poverty are finding it difficult to pay for their insurance amidst the cost-of-living crisis - leading some to give up insurance as they prioritise food and energy bills, new report warns today.
New research by the Social Market Foundation (SMF), supported by Fair By Design, found that insurance is becoming increasingly unaffordable for those on low incomes as they are charged "a poverty premium" - meaning they pay more for insurance cover due to reasons they cannot control, such as where they can afford to live.
People on low incomes can pay £300 more on car insurance than better-off drivers simply because of their postcode. People in poverty also pay more for their insurance cover because they can't afford to pay for it all in one go. Additional charges for paying for car insurance monthly instead of annually could mean an extra £160.
Okay, okay. Let's bring James in -
James Kirkup, Director of the Social Market Foundation, says:
"Insurance is rightly seen as an essential good, something that everyone should have to protect them from unexpected losses. Yet the insurance market is operating in a way that means too many people in poverty either can't afford that product, or face unexplained higher costs when they do buy it.
"People going without insurance reflects both the cost of living crisis and the way the insurance market works for people in poverty. We need politicians and regulators to work with the insurance industry to investigate the causes of the poverty premium so that everyone can get this vital product at a reasonable price.
"The insurance industry is providing an important product that supports the finances and peace of mind of millions of households. We hope the sector will rise to the challenge of addressing the poverty premium to ensure even more people can benefit from insurance."
Okay.
Martin?
Martin Coppack, Director of Fair By Design, says:
"What's clear from this research study is that people are not happy about being charged more for things that are outside of their control.
"Insurance helps us weather all kinds of financial storms. We all want to feel like we have a safety net.
"But we have two types of markets. One that works for the healthy and the wealthy, and one that penalises people for being poor.
"Sometimes we have to have insurance, like motor insurance, which is a legal requirement. For motor insurance, you can pay hundreds of pounds more simply because of where you can afford to live - no matter your claims history. What's more, if you can't afford to pay your insurance all in one go, you can end up paying well over another hundred pounds.
"The Government says this is a job for the financial regulator to consider, while the regulator says this is something the Government should sort out. We are stuck in a continual policy 'ping pong', while those on the very lowest incomes continue to pay more for being poor. This is why we are calling on the regulator to investigate the poverty premium in the insurance market to put an end to this stalemate."
Thanks, guys.
ENDS
...
There are just so many problems.
And I'm sure there's no insurance for tents, or caves.
Just give me a sea to stare at, or ...
A guitar to rock the world with.
Either will do.
Bye.
