The recession has caused many of Britain's drivers to cut back spending on their car insurance, according to uSwitch.com.
New figures from the company show that one in five motorists are choosing third party car insurance policies with lower amounts of cover because they cannot afford a more comprehensive package.
The research also showed that 34 per cent of drivers do not know what is covered under third party car insurance, with seven per cent of those wrongly believing they are insured against damage to their own vehicle .
Mark Monteiro, insurance expert at uSwitch.com, said: "Motorists must be careful that downgrading their level of car insurance cover doesn't turn out to be one cut-corner too many."
The Guardian recently reported that car insurance companies are charging higher rates to existing customers than they are to those who are taking out cover with them for the first time.




