Consumers 'dropping motor insurance during recession'

Thousands of drivers may be cancelling car, van and motorhome insurance policies in order to save money during the recession, it has been claimed.

According to Friends First, more than one in ten consumers have cut back on their cover in order to fund household bills and food payments during the winter.

Of those who have reduced their insurance spending, one in four have stopped paying for vehicle insurance, the study revealed.

Individuals have also been cutting back on travel, life, home and income protection policies, Friends First reported.

Eamonn Twomey, head of marketing at the firm, said the results of the research were "quite alarming", given the problems caused by such drivers in the event of an accident.

Last month, Ajay Shah, head of motor customer service at ICICI Lombard General Insurance, said consumers could save money on their cover policies by shopping around and assessing the market.

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2010-01-12 13:15:39 © Moneyextra.com