One in seven insurance customers cancel or decline cover – Premium Finance

Around one in seven consumers decided against buying insurance or cancelled certain types of cover in the past year, according to Premium Credit.

The premium finance company’s latest insurance index, which sampled 1,000 adults in March 2026, found that 15% of consumers in the past year cancelled or decided against cover – up from 11% in last year’s report. 

However, the index also disclosed that at least 20% said they still needed cover despite cancelling it.

Jon Howells, chief commercial officer at Premium Credit, said: “It can be tempting to cancel policies or decide not to have cover as a way of saving money, but the reality is that it will often be a false economy.

”Premium finance can take the sting out of a large lump sum, allowing consumers to break it down into instalments in much the same way as they might pay for other large outgoings.”

Further results

The latest insurance index also revealed that 12% of respondents said they have not been able to claim for damages to property or belongings in the past five years either because they were not insured or did not have adequate insurance.

Around half (45%) of respondents missed out on claims of more than £1,000 and 23% said the loss was £3,000 or more.

“The number of people unable to make claims because they do not have cover or have inadequate insurance is rising and the sums people are missing out on can be substantial,” Howells said.

Dave Taylor, chief customer officer at MGA Somerset Bridge, added: “Premium finance is now a necessity rather than a choice, with many customers unable to pay for their insurance in one lump sum.

”The instalment option is invaluable and the convenience of using premium finance rather than other sources of credit is a key factor in why customers choose to use it.”