Insurance Cover Cost Cutting Might Result In Great Financial Risk
Posted on February 2nd, 2011
According to a survey by the British Insurance Brokers’ Association and the car insurance supermarket, it has been concluded that people are putting themselves in financial risk by reducing the car insurance cover to cut down their expenses. The insurance cover offers protection to the insurance owner in the event of accident and theft but the rising number of UK motorists cutting their protection cover is risking their belongings as well as others on road. It can put complete financial burden on the car owner as in the event of theft or accident he cannot make complete claim due to cost cutting in car insurance policy and will have to bear complete financial burden for repairs.
More than 57% of the respondents in the survey agreed that they have put down their insurance cover as compared with the last year aggregate of 23%. According to the study, the frequent ways of trimming the insurance protection include increasing excesses, reducing sums insured and deleting cover that deemed to be non-essential. The increased excess increases the responsibility of the car insurance owner in the event of any collision, as he will be paying for the damage cost instead of the insurance company.
According to the chief of the association, the financial condition of every UK motorist is quite tough but it does not mean to leave yourself exposed to another risk by reducing the insurance cover. As it might play against them and they will have to pay more for the repairs in case of any theft and accident. So, the consumers must think long and hard about the insurance cover that will be suitable for them. They can search suitable car insurance policy in car insurance supermarket or seek professional advice of any broker to avoid any serious financial consequences.
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Tags: Financial Risk, Risk
Filed under Car Insurance News |