According to the Times Online the credit-crunched British public plan to cut back on insurance policies this year in a bid to limit spending…..
More than a million customers have already reduced their insurance cover, saying they simply cannot afford it, according to a survey by insurer LV, until recently known as Liverpool Victoria.
Insurance Blogger wonders if the public are just becoming more savvy and shopping around online. It’s an easy excuse to use in the current economic climate and nobody questions it when they get put on the spot by a phone call out of the blue asking them why they didn’t renew!
Another five million Britons plan to cut their cover to try to save money over the coming 12 months, the LV poll of just 2,141 clients reveals, say the Times.
Surprisingly they believe that 37 per cent of people are considering downgrading their car insurance.
LV state that on average, those planning to cut their insurance cover this year believe they will save £125 over the course of the year, or £10.41 a month.
Come On! we know money is tight but do households really do the sums to the n’th degree, or maybe their current insurer is overcharging by that amount!
LV= properly point out that “cancelling or reducing essential insurance cover could result in many people finding themselves seriously out of pocket if something untoward happens. It is at time likes these, when money is short, that insurance becomes evermore important.”
There are legitimate ways of reducing your car insurance costs, such as increasing your excess or making lifestyle changes such as increasing your security or decreasing your annual mileage, which will save money by reducing premiums without reducing your levels of cover.
Shop around on the Internet and check out specialist car insurance schemes that offer cover tailor made to your lifestyle and / or motor, which is more than not often cheaper than the standard offering to everyone available through the large comparison sites.
Motorists found driving without car insurance could risk a fine of £5,000, disqualification and the car being seized and crushed by the police.