Insurance for Car Still Affordable for Many

A recent study from the Insurance Research Council found that drivers were taking steps to reduce their overall insurance, for caras well as for home.

When it comes to auto insurance, coverage is currently required by law in 49 states.

In the study, 15 percent of consumers said they had recently increased their deductibles or lowered their coverage in order to reduce premium costs. A total of 9 percent said they had cancelled an insurance policy, one-third of whom took the additional step of selling a vehicle for personal financial reasons.

These findings confirm that most Americans recognize the importance of maintaining essential insurance coverage on their homes and cars. But they also show that Americans are willing to shop and reevaluate their insurance needs in order to reduce insurance costs," said Elizabeth Sprinkel of the IRC.

The study also found other ways where consumers are cutting their expenses, with 65 percent saying they have significantly reduced entertainment expenditures and with 37 percent having put off buying a major appliance.

Overall though, whether seeking insurance for car or home, the economy is not stopping many consumers from maintaining at least minimal coverage.