Car Insurance Downgraded
by Consumers During Credit Crunch

The recession has bitten into all parts of the economy, and many people have been looking to find various ways of reducing expenditure. One of the ways that people have been trying to reduce motoring cost is by reducing the level of car insurance they pay on their vehicle. Many people have taken the option of reducing their car insurance cover from fully comprehensive to third party - with as many as one million people opting to take this approach in order to find cost savings. It is estimated that three per cent of drivers are actively ignoring comprehensive cover and only researching third party cover, but many people also assume that third party car insurance covers them for damage to their own car. This does in effect leave drivers taking a gamble that they will not have any damage done to their own car, no matter how good they themselves consider their own driving to be, and for many people, this could be false economy. Any savings that drivers make on their car insurance premiums could be more than wiped out if they have to pay for their own repairs. In addition, the AA report that almost three thousand people had cars stolen last years as a result of car keys being stolen, following muggings, car-jacking and pick pocket thefts. As cars are becoming more difficult to break into, thieves are burgling homes simply to steal car keys of valuable models. In this scenario, it is likely that simply having third party cover would leave the car owner seriously out of pocket.

There is no doubt that comprehensive cover can be expensive, and estimates are that comprehensive car insurance can be as much as eleven times higher than third party policies, but the internet offers many opportunities to find better deals and reduce car insurance premiums. As many people are thinking of purchasing second hand cars over the coming months to save cash, there is the fear that more substandard cars will be on the road, and many of them will have inadequate insurance cover, should there be an accident.

Another concern which has recently surfaced follows a survey which suggests that many people will reduce their costs by not having their cars serviced. As many as seven million people are estimated to be considering saving money this way. There is possibility that, by neglecting vehicle maintenance, the car is more likely to be involved in an accident, which would in turn increase car insurance premiums. The advice is to carry on keeping your car serviced. If by any chance you do have an accident, it may be possible for insurers to claim that the car was not roadworthy or in good enough condition that a claim should be paid. Bizarrely, many people are considering having their car valeted at some point during the year which in some instances can cost as much as eighty pounds. People in the industry see this as a ridiculous option when motorists are reducing their car insurance premiums. The eighty pounds spent on car insurance could mean the difference between able to buy comprehensive and third party insurance.

Visit www.car-insuranceuk.com regularly for the latest car insurance news and links to car insurance providers. Please follow the links on this page to obtain your own personalised car insurance quote and make your own comparison.

© July 2009