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Wednesday 10th of June 2009
June 8, 2009

Comprehensive cover squeezed by recession


by David Masters
Comprehensive cover squeezed by recession

Over 300,000 UK motorists have downgraded their insurance cover to third party as the recession takes it toll on their finances.

Meanwhile, an additional one million third party policy holders could no longer afford fully comprehensive cover even if they wanted it.

The news comes despite the fact that more than a third (34%) of drivers are ignorant of what third party cover actually means.

Nearly two million drivers wrongly believe that third party insurance covers them for damage to their own vehicle but not to other people’s vehicles, whilst a similar number believe it provides the same level of protection as comprehensive cover.

A further 20% (5 million) of motorists confessed to not knowing the meaning of third party insurance.

Price comparison site uSwitch.com, who conducted the poll, said motorists choosing to downgrade their cover should first research the protection offered by third party insurance.

Mark Monteiro, uSwitch.com insurance expert, said: “Motorists must be careful that downgrading their level of car insurance cover doesn’t turn out to be one cut-corner too many.

“A third party level of cover could prove a false economy in the event of an accident, as a motorist is in danger of having the amount saved on the premium completely wiped out by the cost of any repairs to their vehicle.”

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