Sainsbury's insurance warning for cost cutters

As the credit crunch continues to grind on, Brits have been coming up with ways to cut back on costs in a bid to save money.

According to a study conducted by Sainsbury's Bank, people are going so far to scrimp on outgoings that they are actually reducing insurance cover and some are cancelling policies altogether.

However, the bank has warned that insurance should be viewed as a necessity, not a luxury.

Sainsbury's Home Insurance manager Neil Laird explained: "It's inevitable that people are going to be looking to make cut backs, but it's a real concern when those cut backs leave them vulnerable to far greater expense down the line."

In a bid to ensure that people are adequately covered at an affordable cost, given the current economic climate, Sainsbury's is to launch a '30-30-30' offer, which could see customers getting a discount of 30 per cent on contents and building cover, in addition to two lots of £30 shopping vouchers.