Car Insurance Cutbacks Put Brits at Risk

As people struggle to make ends meet financially it’s no surprise that they are looking to make cutbacks wherever possible on a variety of expenditures. Among them however, are their insurance policies – with many motorists reducing their car insurance cover in a bid to save cash.

Estimates from Sainsbury’s Bank find that 432,000 people have cut back on their car insurance cover since the onset of the credit crunch with 147,000 even going as far as to cancel their policies altogether.

Cancelling your car insurance is all well and good if you’ve found an alternative form of transport and no longer need to drive. However, those who are driving uninsured are risking prosecution, heavy fines and potentially lengthy driving bans and even prison time for flouting the law.

For those who are choosing to cut back on their cover, there are also warnings about the risks they are taking.

Why you can’t afford to reduce your car insurance

In 2007, there were a total of 247,780 casualties of all severities on the UK’s roads according to the Department of Transport. Of these, 2,946 people were killed and 27,774 were seriously injured.

Clearly there are plenty of dangers on the UK’s roads. However, it’s not just the potential of causing an injury to someone else which may lead to a car insurance claim – there is also the possibility of damaging a third party’s vehicle or your own vehicle. When this is coupled with the risks of having your car stolen, vandalised or if it suffers fire damage, it’s clear that car insurance can provide welcome peace of mind.

In the UK third party only cover is the only legal necessity – this covers third parties and their vehicles but does not protect your own car. Third party fire and theft cover adds some protection for your own vehicle in case it is involved in a fire or is stolen. However, even this level of cover will not be sufficient for a number of risks such as if your vehicle is damaged in an accident.

The only way to protect your own car is through comprehensive cover. Not only will a good comprehensive policy ensure that your vehicle is repaired or replaced, it could also potentially provide you with a courtesy car while yours is worked on meaning that you can continue to travel to work or run errands and won’t be inconvenienced by an accident. Sacrificing this level of cover can prove a false economy particularly if you rely on your vehicle on a daily basis.

How you can reduce premiums without cutting car insurance cover

Thankfully there are ways to reduce your car insurance premiums without leaving yourself exposed to greater risks.

The key is to contact your insurer and ask it about the discounts that are available. Many insurers will offer you rewards if you can reduce your risk level meaning you are less likely to make a claim.

One way to cut your risk level is to add car alarms, immobilisers and tracker devices to your vehicle reducing the chances of theft. Most insurers will reward you with discounts for these measures as long as you consult them beforehand about which devices to install. Similarly parking in a garage at night and in a secure car park during the day could also cut your premiums.

It’s not just security that can help you save. Proving you are a competent driver and therefore less likely to be involved in an accident will also help. Taking an advanced driving course could earn you brownie points with an insurer, while staying accident free will help you to build up a no-claims discount.

Insurers base their premiums on perceived risk too – you could save money by appearing to be less likely to make a claim. For example, experienced drivers tend to be involved in fewer accidents so young drivers can benefit from adding a parent to a policy as a named driver. Agreeing to a mileage limit and spending less time on the road can also help you save – as can removing options such as ‘business use’ or ‘commuting’ from your policy if you only drive when running errands or for social use.

Finally, make sure you are shopping around for cheap car insurance and getting the best deal to begin with. Comparison websites are now capable of comparing more than 100 policies with a single search giving you a quick overview of whether you’re paying over the odds or not.