Many firms have seen customers lowering their amount of protection, according to Graeme Trudgill, technical and corporate affairs executive for the British Insurance Brokers’ Association (Biba).
He explained that some clients are looking to obtain cheaper premiums by raising the excess they would pay in the event of an accident.
However, Mr Trudgill said that these people could end up facing a “hefty bill” if the worst should happen.
“They might be able to afford the first 100 pounds for an accident, but can they afford 500 pounds?” he remarked.
Recent research carried out by Biba revealed that around a fifth of its members have seen personal lines customers reducing their level of insurance.
The study found that 29 per cent have experienced lower business levels for non-essential cover and additional features.