Before you decide, here are a few things to consider.
Inflation (the rate at which the prices of goods and services increase) is having a big impact on household budgets. We're all searching for ways to cut our everyday costs as the price of energy, food, and fuel remain high.
If something happened, the financial shock might be far greater than the cost of the premiums you're paying. For example, if your phone got stolen, could you afford to replace it like for like?
If you can afford to continue paying your premiums, you’ll have more financial resilience to deal with whatever might come your way.
If you're a home owner, you probably have buildings insurance as it's often a condition of your mortgage. If so, this isn't something you could cancel to save money.
But you might also have contents insurance to cover your belongings in case they’re damaged, stolen, or lost.
Before you cancel any home insurance policies, ask yourself whether you'd be able to recover financially if your home was burgled or hit by fire or flood.
If your home became so badly damaged that you couldn't live there, is your home insurance likely to pay for somewhere else until you could move back in?
If you can afford to, it makes sense to keep your insurance cover to give you peace of mind.
But it's worth taking the time to make sure you have the right level of cover. For example, accidental damage cover is usually an optional extra, so you could remove it if you don’t think it offers value for money.
Are you paying extra to cover certain times, such as your bike? Most policies cover bikes as standard within the home. So, if you’re working from home more these days, you might not need extra cover.
Did you know if you increase your insurance excess, it brings down your premium? Just remember that if you do make a claim, the excess is the amount you'll have to pay yourself.
Explore: Why is home insurance important?
It's never easy to think about what might happen to your family if the main earner were to die or suffer a serious illness or injury. But it's something to consider before cancelling any life insurance policies.
Consider if there's a possibility you might lose your home if you had no cover.
Bear in mind – if you cancel a policy now but plan to take out single or joint life cover again later, it’s likely to be more expensive because you’ll be older. You might even find it hard to get life insurance again if you're in worse health than when you originally took out a policy.
Remember too that most protection policies have guaranteed premiums. This means they won’t increase throughout the term of the life insurance policy – so you’ll never pay more than the price you’re paying now.
If your budget is tight and you’re considering cancelling your policy, give your product provider a call. They may be able to make your policy more affordable, while still providing you with a level of protection.
Home insurance policies
Call Aviva on 0345 300 5898.
Lines are open 08:00 to 20:00 Monday to Friday, 08:00 to 16:00 on Saturdays, and 10:00 to 16:00 on Sundays (excluding public holidays).
Life insurance policies
If you bought a Life policy through one of our protection advisers (not HSBC Life), get in touch with them directly.
If you have a question about an HSBC Life policy, please call:
Lines are open 08:00 to 18:00 Monday to Friday (excluding public holidays). Calls may be monitored or recorded.
If you're not sure whether cancelling insurance is right for you, there might be other areas where you could cut back. For example, we have everyday spending hacks to help you save money.
