British drivers downsize to save on insurance costs
March is traditionally the month when drivers renew their insurance policy, and according to research by Saga, nearly three million motorists have downsized to a smaller car in recent months to save on insurance costs at policy renewal.
Eight percent of motorists – 2.7 million drivers -have opted for a car with a smaller engine to reduce their monthly insurance bill, as well as cutting back on fuel and tax costs.
A further 8% have increased their voluntary excess to reduce monthly insurance premiums, whilst 4% have removed named drivers from their policy.
One in twenty (5%) motorists have removed optional extras from their policy, such as breakdown cover or legal expenses.
Three quarters (73%) of drivers, however, have not yet done anything to reduce their insurance costs.
Saga chief executive Andrew Goodsell encouraged more drivers to take ‘simple steps’ to reduce the cost of policy renewal.
Goodsell said: “Remembering to update your car insurance policy as your needs change can help save money on monthly premiums at a time when many people are looking to reign in their spending.
“However, it’s important to ensure the quality of the cover isn’t compromised and the policy still meets all your needs.”