Van Insurance News from Be Wiser

Credit Crunch Car Insurance Crisis

The ongoing credit crunch crisis has meant that many people in the UK are cutting back on their spending resulting in reduced number of people taking out car insurance, according to an expert.

However more than six million people switched car insurance providers over the last six months, showing that car insurance is vital for every motorist regardless of the economic slowdown.

A recent report warned that British drivers who choose not to take out car insurance in order to save money are foolhardy.

It was also highlighted that driving without car insurance was against the UK laws adding that those found guilty running the risk of a criminal record while those who do not take out cover cost their honest counterparts extra money.

10% of car insurance claims are due to accidents caused by driver fatigue and suggests that a recession-driven long working hour’s culture may increase this risk.

A study from the AA shows a dramatic 31% reduction in road congestions since the credit crunch began two years ago.

Online results have shown that only 5% of motorists would switch to third-party only cover to save money, despite the financial pressures of the recession.

However 13% said they would attempt to reduce their premiums by either raising their excess or reducing the total amount of value insured.

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