Car insurance cover reduced during the recession

A new report published had discussed how most motorist have reduced their car insurance cover over the recession. This means greater savings on their part which they can use for emergency and their own personal use. At the same time, this posed an even greater risk for them in financial terms.

 

According to a statistics from analytics firm Quality Planning, comprehensive and collision auto insurance had an increase in the rate of people availing it from 2006 and 2010. These two auto insurance covers are just optional and it is up to a car owner’s preference to purchase it or not. The difference of these two auto insurance is that the comprehensive auto insurance cover includes damages relating to theft, vandalism, flood, or fire while the collision auto insurance includes those that are from an automobile accident.

The percentage rose from 53% to 63% and the report emphasized an increase market for these insurances especially for old cars of 10 years and above. Additionally, most of the individuals who purchase these collision and comprehensive insurance also opt to higher deductibles making their whole auto insurance cover lowered in a significant manner.

Though this may mean a greater saving for them, still, they are faced with a higher financial risk which they should also evaluate before having these decisions.


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Posted by on Apr 1 2011. Filed under Auto insurance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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