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Posted 1st June 2009

Cutting costs on car insurance could put UK drivers at increased risk

According to research conducted by the British Insurance Brokers Association (BIBA), 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. While many people have, in the past, been keen to obtain the maximum levels of cover they can afford for anything from car insurance to breakdown cover, the need to save money has become paramount in households across the UK (if not the world), so cost-cutting measures have impacted on many aspects of everyday expenditure.

Car insurance products are regarded as one of the biggest personal lines products in the broker market and evidence suggests that a large percentage of UK drivers are now seeking and comparing quotes for reduced levels of cover, with many of the usual 'add-ons' that are offered with car insurance policies being refused to reduce the overall cost of the policy. Conversely, increased excess levels are being preferred by many motorists as another way to keep the cost of a premium down, with a similar number of drivers opting to reduce the sum (or value of the car) insured.

Independent insurance brokers are aware of the need to highlight the potential dangers of reducing the levels of cover in personal lines insurance policies and are urging UK customers to seek proper advice from a broker before taking any radical cost-cutting measures. While many UK drivers prefer to make savings by using online car insurance comparison websites, obtaining advice from an independent broker in the first instance can still ensure that sufficient and appropriate car cover is purchased at a price to suit individual budgets.