It appears that the current problems are causing people to be creative when it comes to cutting costs. Many families are now getting rid of extra cars which means that there are less drivers needing car insurance.

There is also extra pressure on home insurance providers. Its much harder for first time buyers to get mortgages to buy their first property which has slowed down the entire chain. In fact, would-be first time buyers are making a conscious decision to stay in rented accomodation until the money markets improve and borrowing becomes easier. Renters only need contents insurance so the insurers are missing out on the extra revenue from buildings insurance which will cause losses later this year.

One way to control your personal insurance costs is to use a price comparison service offered by sites like Quotezone. You could save up to £200 on your annual car insurance renewal.