Credit crunch curtails car insurance cover

The recession is leading many to find ways to save money, including curtailing the additional cover taken out with car insurance – it could be a false economy though.

According to esure in-house figures, since the start of the recession over 7% of people have not taken out no claims discount protection to save money on their car insurance.

Equally, over 8% haven’t taken out motor legal protection.

With so many providers offering car insurance and competing for your business, by comparing what’s offered and what’s included as standard, you can get the best price insurance to meet your needs.

Compare car insurance using comparison websites such as Gocompare.com, confused.com, moneysupermarket, or of course visit individual sites, such as from esure.com or Direct Line.

Not including add-ons such as protection for your no claims discount might save money upfront, buy it could be a false economy.

Whilst insurers’ no claims discount scales are different, for drivers who haven’t made a car insurance claim for 5 years, up to a 70% discount can be had.

This could save hundreds of pound off the annual car insurance premium.

As Mike Pickard, Head of Risk and Underwriting at esure car insurance, comments ‘Protecting such a valuable way to bring down your insurance premium makes sense. By adding a small premium – in the tens of pounds – makes sense if it could stop your no claims discount being reduced in the event of having to make a single claim, or more than one claim’.