New research has suggested that many people in the UK are unsure about the level of cover their car insurance policy provides them while they are driving abroad.

According to comparison site moneysupermatket.com, five of the ten leading providers in the UK reduce the level of cover when policyholders go to Europe.

Figures from the survey reveal that nearly 40 per cent of drivers were unaware that their motor insurance may be downgraded to third-party automatically while they are driving on the continent.

Richard Mason, director of insurance at the site said that it is a legal requirement for insurers to provide at least third-party cover but many Brits are unaware that driving in Europe has an effect on insurance.

"If you normally have comprehensive car insurance, it will come as a shock if you are with one of those insurers who will downgrade your cover for driving in Europe. While it may be in the small print of your policy, our research shows many motorists are unaware of this," he said.

A report in 2001 by the Office for National Statistics found that Britain has 6.1 road accident deaths per 100,000 people each year, compared to Spain which has 13.8 and Portugal, which has 21.

A £6 billion investment package to make improvements to motorways and other important roads, which could lead to fewer accidents and in turn, cheaper car insurance costs, has been announced by th...

Home and car insurance customers who used a price comparison site to look at different quotes made savings by doing so, which could prove beneficial in the current difficult economic conditions.Accord...

Consumers who are looking to reduce monthly outgoings as their personal finances come under more pressure could consider shopping around for home and car insurance cover, one industry figure has claim...