Cutting Car Insurance Costs Increases Risk Levels - February 2010

This regularly updated section of the HomeApproved web site will cover the latest trends, research, opinion and developments in the UK car insurance sector. 

Cutting Car Insurance Costs Increases Risk Levels
It seems to be stating the obvious - that by cutting the cost of your car insurance premiums you are often having to reduce your level of cover and protection.

However this has increasingly become the norm for many motorists as the effects of recession bite deep into the financial pockets of motorists across the UK. The British Insurance Brokers Association (BIBA) have previously stated that more than a fifth of brokers surveyed confirmed that policyholders had reduced the level of their personal lines cover and are continuing to do so in the current economic climate.

Whilst the need to save money has become increasingly paramount, drivers should be made aware of the real costs of driving with lower levels of car and breakdown insurance cover. It's an old adage, but make sure you research several motor insurance companies either before getting car insurance or when it's time to renew. Your goal should not be to just chase down the cheapest possible price for your car insurance but to ascertain the maximum cover level at a price you can afford.

Consider the list of car insurance options and 'add-ons' that are offered carefully. Secondly, would it really be sensible to raise the excess level to an amount which would probably be unaffordable in the event of making a claim?

Highlighting the potential dangers of reducing the levels of cover in car insurance policies is an important message and UK drivers should seek proper advice from a broker before taking any radical cost-cutting measures!

ENDS

Top of Page