Earlier today, we announced the results of a study we’ve been carrying out on wedding insurance sales in the UK.
We were shocked to discover that, on average, it would appear that couples buying wedding insurance are underinsuring their weddings by 30 percent!
The study looked at sales of wedding insurance policies purchased between May 2009 and April 2010. For that period, the average cost of a UK wedding was around £17,000 (excluding the cost of a honeymoon). However, the average cancellation cover provided by a wedding insurance policy was just £12,000. That’s an insurance shortfall of £5,000 – around 30 percent of a couple’s overall wedding budget.
While it’s great that so many couples are taking out wedding insurance to provide financial protection for their big day, it’s alarming that so many are underinsuring themselves by such an amount. Should the unthinkable happen and a couple find themselves forced to cancel or postpone their wedding, they may find themselves significantly out of pocket, despite thinking they were financially covered.
There are, of course, a few explanations for this shortfall. It could be the case that couples ultimately spend way more than their initial budget and don’t increase their insurance cover accordingly. Or, they simply don’t insure themselves for the full amount, gambling that they won’t actually need to claim for full cancellation or postponement.
Our wedding insurance comparison table lists information on a number of providers of wedding insurance. It can be sorted by both premium and cancellation cover too so you can easily find the policies listed that would cover your complete wedding budget.