Report Shows Consumers Drop Auto Insurance Coverage to Save Money

Comparing auto insurance rates has become something of a habit for the cost conscious populous always seeking to lower prices without increasing exposure. But there are troubling signs that the current recession and increased costs for insurance coverage have been leading many consumers to put themselves at greater risk to save a few dollars.

According to a March 2011 report by Quality Planning (a branch of Verisik Analytics) ever since 2006, car insurance customers have been steadily lowering levels of coverage and in some cases even dropping insurance altogether on older vehicles in an effort to pinch pennies. The biggest change seen was in the raising of deductible costs, where insurance holders opted to gamble for savings in the short term.

While lowering insurance deductibles is recognized as an effective way of saving money on car insurance, it’s not always recommended – especially for those consumers who are upside down in debt on their vehicles and whose financial livelihood could be threatened in the event of an accident.

What does remain strongly recommended, however, is comparing auto insurance rates several times per year through online comparison engines. This proven method of generating quotes for auto insurance as a means of determining if there are better deals being offered remains one of the most often overlooked methods of cost cutting, and the one that comes at zero cost to consumers.