Over 70% of young adults donâ€™t have insurance cover for their most prized possession - their phone.
02 October 2013
- Legal & General’s “UK Today: Best City to be Young” Report reveals that of their possessions young adults’ rank their phones, (59%) as having the biggest positive impact on their quality of life
- 7 in 10, 73% don’t have phone insurance, and 89% said that they don’t have insurance for a laptop or tablet
- Less than 1 in 10, (8%) of young adults say that having insurance has a positive impact on their quality of life
Working with Dr Esmée Hanna, an expert in demographics, Legal & General’s new “UK Today: Best City to be Young” Report has identified the 10 key factors that 18 - 30 year olds say have the greatest impact on their quality of life, today in the UK. As part of this research the respondents were also asked which possessions had the most positive impact on their quality of life. The majority, (59%) of them identified their phone as the possession which has the biggest positive impact on their quality of life. The next key possessions were laptops/tablets, (56%) and owning a car, (45%).
With nearly 1 in 5, (18%) of 18 - 30 year olds found to have no insurance cover at all in place, it’s clear that many young adults are not taking steps to insure the possessions which they say have the most positive impact on their quality of life. For example, 73% don’t have insurance cover for their phone and 89% don’t have insurance cover to protect their laptop or tablet.
When asked which wider factors had the biggest positive impact on their quality of life, ‘Working in a job I enjoy’ (67%) and ‘A reasonable cost of living’ (67%) were identified as the two most important factors by 18 - 30s, highlighting the importance young adults attach to their job and ability to have a comfortable lifestyle. However, when asked about the types of insurance they have, only 3% said they have insurance cover in place that would help to protect their lifestyle if they should become ill or unable to work.
Overall, over a third, (39%) of the young adults surveyed said that they have home contents insurance in place. However, the level of cover fluctuates across the UK’s major cities. For example, London has the lowest uptake, with less than a quarter, (23%), saying that they have home contents insurance cover in place. This is followed by Liverpool and Glasgow, where in both cities less than a third of 18 - 30 year olds have home contents insurance cover in place, (29% and 32% respectively).
Mark Holweger, Director for Legal & General’s general insurance business said: “It’s encouraging to see that in what is still a tough economic climate, a high percentage of young adults in the UK are protecting their belongings with some form of insurance cover in place. However, when you strip out car insurance, which is compulsory, then the level of insurance cover drops quite significantly. From our new research it’s clear that often the insurance cover that young adults have in place doesn’t actually cover the things that they say are most important to them, or the things that would have a big impact on them maintaining a good quality life.
“Our “UK Today: Best City to be Young” Report research shows that many young people do not understand the ‘real’ benefits of having adequate insurance cover in place. For example, ‘Working in a job I enjoy’ and ‘A reasonable cost of living’ were both identified as the most important factors for a positive quality of life by 18 - 30s. So it’s concerning that only 3% of 18 - 30 year olds have insurance cover in place that would help to protect their lifestyle should they suffer an accident, a sickness or unfortunately become involuntarily unemployed, so they are no longer able to work.
“It’s clear that the link between insurance cover and the factors that are important in maintaining a quality of life and protecting possessions isn’t always being made. We’re encouraging the UK’s young adults to review their position and check with their provider that they do have appropriate insurance cover in place, or to contact an insurance broker or intermediary who is able to help by giving them advice on the insurance cover they should have in place. Our aim is to get more young adults to appreciate the value of protecting themselves and the things important to them, so their quality of life isn’t then compromised, if things should go wrong.”
Legal & General has also developed an Interactive House which has been designed to help improve customers’ understanding of the insurance terms used and the home insurance cover available. By moving through the 3D house and clicking on the special icons displayed in the various rooms, details appear on insurance cover available. For Legal & General customers, they are able to enter the first few digits of their policy number to see what is and isn’t covered under the actual policy they have in place. It can be accessed at: www.legalandgeneral.com/insurance/customer-portal/interactive-house
Legal & General offers a range of general insurance products for young adults, such as home contents insurance, which can then be extended to cover phones and laptops and also bikes if needed. Also products to cover their income to protect their lifestyle, should they should be ill, suffer an accident or become unemployed, as well as car insurance and any pet insurance for their dogs and cats'. Advisers wanting further information should contact their normal Legal & General contact or go to www.legalandgeneral.com/gicentre
To download the full “UK Today: Best City to be Young” Report, go to www.legalandgeneral.com/BestYoungCity
Notes to editors
Source: Legal & General “UK Today: Best City to be Young” Report consumer research was conducted by Vision Critical on August 16, 2013. The online survey is of 2117 randomly selected UK adults aged 18 - 30. The sample has been balanced to provide age, gender and regional data. Discrepancies in or between totals are due to rounding. Each of the 20 UK cities received at least 100 respondents and the breakdowns between the cities are as follows: London (111), Birmingham (110), Leeds (100), Glasgow (110), Sheffield (111), Bradford (109), Edinburgh (103), Liverpool (110), Manchester (110), Bristol (110), Wakefield (100), Cardiff (106), Coventry (107), Nottingham (110), Leicester (110), Sunderland (100), Belfast (100), Newcastle upon Tyne (100), Brighton (100)