Credit crunch victims give up car insurance

Wed, 08 Apr 2009

New research by Sainsbury's Finance has shown that the credit crunch has left car insurance holders in the position of having to cut down or completely get rid of their motor cover .

The company has estimated that 579,000 people have reduced or cancelled their car insurance and decided to use cheaper forms of transport, such as bus, train or bicycle .

Skimping on insurance is a false economy, however, according to Sainsbury's, and car insurance owners thinking of cutting their cover should use price comparison services to get a better deal.

Neil Laird, insurance manager for Sainsbury's, said: "Given the financial state we're in it's inevitable that people are going to be looking to make cut-backs, but it's a real concern when those cut-backs leave them vulnerable to far greater expense down the line."

Saga recently revealed that 70 per cent of British car insurance owners in difficult financial situations were more keen on cutting day-to-day motor costs than reducing their car insurance.
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