Cutting back on insurance 'a big mistake'

Consumers cannot afford to cut back on insurance cover despite the recession, it has been claimed.

According to Nottingham Building Society, many consumers have ceased paying for many policies they deem as non-essential over the last two years.

However, the firm suggests that this could prove to be a false economy in the event they need to make a claim.

Lorraine Giddings, head of the branch network for Nottingham Building Society, said she understood that many people have needed to tighten their belts during the recession, but warned that not having adequate cover simply risks further financial expense in the future.

She added that having cover in place as a precaution "far outweighs the cost saving of your monthly insurance payments".

Under government proposals, motor insurance will soon be required for all vehicles, not merely those being driven on the roads.

Even vehicles kept simply for show will require cover, unless their owner applies for Statutory Off Road Notification.

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2010-01-21 08:37:14 © Moneyextra.com