Insurance cut-backs 'rife during a recession'

Britons are reducing the amount of insurance they take out as they look to cut their outgoings, an expert reveals.

In a bid to reduce their outgoings, Britons are sacrificing the amount of insurance they take out, one expert says.

Graeme Trudgill, Technical and Corporate Affairs Executive for the British Insurance Brokers' Association (Biba), believes this is particularly prominent during a recession, with people looking to slash costs wherever possible.

"You do really need to have motor insurance because the law requires you to have that," warned Mr Trudgill.

He added that with insurance, it is crucial to differentiate "between the 'needs to have' and the 'nice to have'", with car insurance coming under the former.

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Drivers need to make provisions for the add-ons to their policies, Mr Trudgill believes, taking into account things like driving overseas and windscreen cover.

Biba found that 23% of brokers have seen customers reduce the level of insurance protection they take out, with 29% noting a fall in the amount of non-essential cover.