In these tough economic times, every penny counts at Christmas time. However, thousands of shoppers across the UK are likely to throw money away on in-store insurance policies that offer the same cover as their home insurance.

Research by a home insurance provider shows that nearly a quarter of Brits (23 per cent) buy additional insurance to cover the loss, damage or theft of items such as jewellery, a new watch, or a mobile phone. However, more than 3.3million adults in the UK already have personal possessions cover as part of their home contents insurance - meaning they are effectively doubling up their cover and buying an unnecessary product.

At a time when household finances are being stretched to the limit, avoiding this expense could save a significant sum on your shopping bill. However, how can you avoid falling into the trap?

The first step is to check your home insurance before you shop. See what’s covered in your personal possessions cover and consider updating your contents policy if it is out of date. Most home insurance policies cover the whole household, but you might want to check that items are covered outside the home too.

From there, try and avoid the hard-sell as it’s likely that shop assistants earn commission based on the insurance policies they sell. Make sure you read the small print too before signing a retailer’s policy because most will include clauses that make it difficult to make a claim. Don’t be swayed by the price tag either as whereas a retailer’s cover may only cost a few pounds it’s still not worth paying for cover you already have.