Graeme Trudgill, head of corporate affairs at the British Insurance Brokers' Association (Biba), has said the hard times brought on by the recession have prompted a rise in the number of people signing up for the least expensive package they can find, without considering whether it is actually appropriate for them.
He said it was crucial for drivers to actually consider what they need coverage for and which packages best suit those needs. "They are just choosing the cheapest possible thing that they can, forgetting that the key areas of cover may not be available," he explained.
He added that the host of price comparison sites available on the internet – and that are made use of by British people more than any other nation – has caused more people to opt for economy over quality when it comes to insurance.
Mr Trudgill made his comments in the wake of the publication of data from JD Power and Associates which found that 44 per cent of all such customers have switched providers over the last year.