Drivers reducing motor insurance cover to cut costs
New analysis has revealed that 15% UK drivers have cut back on motor insurance cover in the past two years.
Based on data from the Office for National Statistics and Financial Conduct Authority, money saving platform Brumble found that one in eight motorists had switched to a cheaper alternative, removed drivers from their policy or insured fewer vehicles.
The research further found that a quarter (25%) of drivers aged 18-24 had acted to reduce premiums and 23% of those aged 45-54.
Meanwhile, lower income families are being placed under the greatest strain by high polices, with the poorest fifth of UK households reducing their spending on vehicle insurance by 36% in real terms.
Difficult decisions
Ryan Hughes, founder and director of Brumble, said: “These figures paint a clear picture: drivers across the UK are being forced to make difficult decisions about their car insurance, whether that’s adjusting, delaying or cancelling policies simply to keep up with rising costs.
“For many, that means effectively gambling with their cover to ease financial pressure now, but leaving them far more exposed if they are involved in an accident or need to make a claim.
“That level of exposure is particularly concerning at a time when the motor insurance industry is reporting its highest-ever claims payouts, reaching £11.7 billion in 2024, driven by rising repair costs, vehicle theft and the increasing complexity of modern car technology.”
“The difficult reality is that those most likely to reduce their cover are often the same people who would struggle most to absorb the cost if something went wrong. That creates a real vulnerability at a time when many households are already under financial strain.”
