Wrong insurance decisions cost £750m

British consumers are convinced that they have missed out on a total of close to £750 million by making the wrong choices when it comes to securing an insurance deal, according to a recent study.

Research by Tesco Personal Finance found that around one million people have seen an insurance claim rejected by their respective providers over the past year and each instance cost the individual involved an average of around £736.

The majority of people around the country do not fully familiarise themselves with the details of their insurance policy before buying it, but thousands of unsuccessful claimants change their ways after inappropriate insurance cover has cost them money, Tesco reports.

Peter Dingle, managing director of TescoCompare.com, said: "Insurance polices can be complicated and it is not surprising that so many people find themselves in a situation where they thought they were covered when in fact they weren’t.

"It is worrying that so many of us have made mistakes in the past twelve months," he added.

Close to a quarter of all homeowners in the UK do not shop around before buying a home insurance policy, according to recent figures from Sainsbury’s Bank.