Motorists considering car insurance downgrade

Many drivers are considering lowering the cover of their car insurance as a way of dealing with the financial constraints brought on by the current credit crunch, it has been revealed.

Research by consultancy firm Deloitte has found that 18 per cent of motorists are considering trading in their comprehensive cover in exchange for a third-party cover as a way of saving money.

The study also stated that the cost of having a vehicle on the road has increased by 8.2 per cent within the last year, leading car-owners to seek ways in which to reduce their costs.

David Rush, an insurance partner at Deloitte, said: "At a time when households have less disposable income, it is understandable that many will look at how they can reduce their spending.

"However, consumers should think carefully about which types of insurance they most need in a down-turn. A short-term saving could cost a lot should an accident occur and adequate insurance cover isn't maintained."

Motorists should be advised that there are other ways in which they could save money on the road without cutting back on their car insurance.

One of which could be car sharing, as the Department of Transport recently stated that 25 per cent of all car sharing is undertaken for work and business reasons.

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