Many people in Britain are cutting back on the amount of money they spend on insurance, reveals a new survey.
According to research conducted by LV=, around 12 per cent of Brits are thinking about reducing the amount they spend on insurance this year as they try to save money because of the credit crunch .
However, John O'Roarke, managing director of LV= general insurance, is advising people not to cut back on policies that are essential, such as home insurance, as as cover could be even more necessary when money to buy replacement items is harder to come by.
Mr O'Roarke said: "It's understandable that people are looking to ways in which they reduce their outgoings, however cancelling or reducing essential insurance cover could result in many people finding themselves seriously out of pocket if something untoward happens."
Recent research by Abbey has found that the number of domestic break-ins is likely to increase during the recession .




