Consumers dropping motor insurance due to recession
It has been reported that thousands of drivers may be cancelling car, van and motorhome insurance policies in order to save more money during the recession.
In a study by Friends First, more than one in ten consumers have cut back on their insurance coverage in order to fund household bills and buy food during the winter.
Of the number of people who have reduced their insurance spending, one in four have stopped paying for vehicle insurance, the study revealed.
Friends First also reported that individuals have also been cutting back on their travel, life, home and income protection policies.
Head of marketing at the firm, Eamonn Twomey, said the results of the study were “quite alarming’, given the problems caused by such drivers in the event of an accident.
Last month, Ajay Shah, head of motor customer service at ICICI Lombard General Insurance, said consumers could save money on their insurance policies by shopping around and assessing the market.