Motorists Switching to a Cheaper Car Insurance Cover to Save Money
Swinton, one of the major insurance companies of the UK revealed that last year there has been a 10% increase in the number of motorists opting for third party, theft and fire cover rather than a comprehensive insurance cover especially when it came to policy renewal. The reason of choosing cheaper form of Car Insurance cover is because of recession.
There has also been an increase in the number of people buying second hand cars costing less than Ł5,000. However, Swinton warns motorists against switching to a cheaper form of car insurance policy as it would be expensive in the long run.
Steve Chelton, Swinton insurer development manager says that motorists have a common misconception that reduced car insurance would be cheaper than a comprehensive car policy. A reduced cover may be short term saving, but it would be expensive for motorists who would be involved in accidents because of their fault. Motorists should discuss with their insurer before downgrading their policy cover and understand the changes when opting only for a third party, fire and theft cover.
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