Economic hardship sees motorists skip insurance

25/09/2009

Nearly two million people in Britain are driving a vehicle without insurance cover because of financial difficulties.

The chief executive of the Motor Insurers' Bureau, Ashton West, claims that the recession has caused significant economic hardship for many drivers and they have taken the decision to sacrifice insurance as a way to save money.

Mr West made the statement at the MIB's Stay Insured campaign which aims to cut the number of drivers on Britain's roads without insurance.

He said that, while it is understandable that people will look to ease financial hardship by cutting back on spending, motor insurance is not something which can be sacrificed as it is a legal requirement.

His comments were echoed by the technical and corporate affairs executive of the British Insurance Brokers Association Graeme Trudgill.

Mr Trudgill said that driving without insurance is a false economy as those who are caught and prosecuted face stiff penalties, which could have a significant impact on their personal finances.

The MIB's research had already shown that the current recession was forcing people to cut things like life insurance. But the fact that there's a proportion cutting motor insurance is a very worrying sign. This is exactly the time when they need to talk to an organisation like EuroDebt which can provide a rational approach to their debts and protect their priority payments, like car insurance and the mortgage.

• Share
• 
• 
• Store
• 
• Follow
•