People should not cut corners when it comes to insurance as it could prove expensive in the long-run, it has been claimed.

Businesses and individuals may be finding money a bit tight at the moment, warned Steve Foulsham, technical services manager at the British Insurance Brokers’ Association (Biba), although insurance is always a necessity.

"If you subsequently have a problem when you come to claim, then it can be even more of a problem at that time than at the time when you purchased the insurance," Mr Foulsham revealed.

Motor insurance is a legal requirement, he continued, which emphasises the need for people to be sure they are getting the right product for their needs to avoid facing financial problems at a later date.

Making an informed decision is crucial for anyone looking to financially protect themselves, Mr Foulsham added.

Biba recently revealed that 29 per cent of brokers have seen a reduction in non-essential cover and add-ons for personal lines business.

When asked which classes of personal lines insurance are most affected, 96 per cent said motor or home.