Around a million people are expected to cut back on their insurance cover because they simply cannot afford it. However, there are ways to save without sacrificing cover altogether.

Research by insurer LV= has revealed that more than one in five Brits plan to cancel at least one insurance policy over the next 12 months because of the recession. Around 37 per cent are considering downgrading their car insurance, but this can be a costly mistake. Motorists should be aware that car insurance is a legal requirement and that being caught without it could lead to a fine in the region of £5,000, a driving ban and even the seizure of your vehicle by the police.
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A survey of 1,500 motorists has revealed that while almost two-thirds are beating the credit crunch by using their car less or adjusting their driving style, many are putting their car insurance at risk just to save cash.

The results of the survey revealed that 22 per cent would consider lying to an insurer about the exact nature of where their car is parked; while 28 per cent would withhold information about their annual mileage to save cash. Around 10 per cent of motorists would even consider being untruthful about the true value of their vehicle and the nature of its use.

It may seem understandable as motorists attempt to save a few pounds as the global economic crisis continues to take its toll. However, the repercussions could be far-reaching.
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