Recession forcing motorists to cut back on car insurance cover
A worrying car insurance related trend is emerging as the worldwide recession plays out in countries across the globe.
The tough conditions are forcing many people to look for savings in all sorts of areas of household expenditure, with research revealing that some are cutting back on insurance in all its guises, not just motor cover.
Perhaps panicked by the toxic atmosphere of the economic slump and maybe facing up to losing their jobs - or the prospect of losing them - people are resorting to hurried ways to cut costs that potentially could have disastrous outcomes in the long run.
While most people are not breaking the law by failing to renew car cover, there is clear evidence that motorists are reducing optional extras on cover, as well as types of policy, to minimum levels, stripping insurance back to bare bones.
It is forecast that the number of motorists risking driving without insurance is starting to rise. With money being tight, people are looking for ways to save cash.
But insurance experts warn that cutting back on motor cover is a huge risk both financially and for legal reasons. Being an uninsured driver in a car accident could lead to lawyers potentially pursuing you personally for the cost of any claims, as well as court appearances, even jail.
One insurance company spokesman urged people to consider the value of their lives to their dependents.
"If you are in an accident - whether that happens when driving a car or otherwise - how would your family pay for all their needs? They will have needed you to travel to school and to pay for food, utilities and so on. It is worth reflecting how vital insurance is to you.
"We all know that times are hard - however, now is not the time to cut back on essentials like insurance. Proper coverage ensures your needs are covered," he said.
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