Home insurance holders earning £100k 'will increase their annual spending'

Thursday, 03 February 2011

Home insurance policyholders who earn £100,000 or more are likely to increase their annual spending by around 7.8 per cent in 2011, a new survey has revealed.

It seems high earners aim to "spend their way out of the recession", with contents insurance customers planning to raise their spending in a number of different areas, the poll by HSBC revealed.

Transport and travel is set to see the biggest proportional increase, with people spending £11,911.20 this year - a rise of 64.8 per cent on last year's spend, the survey found.

Home improvements follow closely behind, with buildings insurance holders expecting to spend £13,946.60 in 2011, compared to £10,304.20 last year.

High earners will be making some cutbacks as well; with them spending less money on one-off big purchases such as cars, gifts and weddings this year.

Richard Brown, head of savings and investments at the bank, said: "Despite additional pressures on income as a result of the increase tax regimes for those earning over £100,000, the planned eight per cent rise in expenditure in 2011 suggests high earners are set to spend their way out of the recession."

Recently, moneysupermarket.com revealed opting for a higher excess on a home insurance policy could be a "false economy".

Posted by Claire Carter

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