People should be careful if they decide to reduce their level of car insurance cover to free up some extra cash, one expert has claimed.
Graeme Trudgill, technical and corporate affairs executive at the British Insurance Brokers' Association, explained that if people switch to third-party cover from comprehensive then they do face some risks.
He said: "If you slip on an icy patch and hit a tree then you won't have cover for damage to your car, so you really would need to have comprehensive insurance ."
People should also make sure that they do not have a "ridiculous" excess on their car insurance policy because if they do they will have to pay out this amount if they need to make a claim, Mr Trudgill added.
Recently, a study by uSwitch.com found that 42 per cent of people have cancelled insurance or pension payments in a bid to reduce their outgoings.




