Drivers are going without comprehensive car insurance in a bid to save cash, a major insurer has revealed.
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Insurance company Swinton said that in the last year, there has been a 10% increase in the number of drivers choosing third party, fire and theft cover when it comes to renewing their policy.
The switch to cheaper forms of car insurance can be attributed to the recession and an increase in the number of people buying second hand cars worth less than £5,000, Swinton said.
Cheaper car insurance
However, the company warned that switching to a cheaper insurance policy could work out more expensive in the long run.
Swinton insurer development manager, Steve Chelton, said: ‘There is a common misconception among motorists that choosing a policy which offers reduced cover will be significantly cheaper than a comprehensive policy.
‘While reducing cover may offer a minimal saving short-term, it could cost drivers a lot more down the line if they are involved in an accident that is their fault.
‘We would advise motorists to speak to their broker if they are considering downgrading their policy as it is vital they understand the changes to their cover when reducing their indemnity to third party, fire and theft.’
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