While consumers in the UK typically spend £1,500 on insurance premiums every year, many do not know exactly what cover they have, a new study has found.
Research by Fool.co.uk showed that 39 per cent of people in the country have no idea about the details and levels of their insurance cover they currently possess.
While ten per cent said they believed insurance is a waste of money, the majority of consumers (60 per cent) think it is a price worth paying.
Overall, the research showed that home contents insurance is the most popular in the country - with 89 per cent opting to take out a policy. Motor (85 per cent) and building insurance (85 per cent) were also common.
David Kuo, head of personal finance at Fool.co.uk, commented: "The key to buying insurance is only to insure against risk that you cannot afford to bear.
"So, if you buy insurance you don't need then you are wasting money. But if you don't buy insurance that you do need, then eventually your decision will come back to haunt you.
"Not knowing how much insurance cover you have is just as bad. It's tantamount to playing a card game where everyone can see your cards except you."
Recently, Equifax suggested that many people were still not considering ID theft insurance, as they were yet to be affected by any form of identity fraud.
