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Rising debt figures collapse automobile insurance market in the UK

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U.K economy experienced a huge dent with a steady rise in the debt figure in the recent years. People are juggling with multiple debts and looking for a reliable debt management program. A considerable number of people are unemployed and many others have lost their jobs. Even the insurance sector could not dodge the effect of this economic meltdown. As people are financially crippled they are trying to evade automobile insurance in the recent years. More than 350,000 car owners in Britain have not obtained any insurance according to the statistics from moneyexpert.com.

Auto owners should hold an automobile insurance according to the law in the U.K. The law has been made compulsory in order to safeguard against large medical bills or other obligations if a person meets with a serious accident. The reason behind not buying automobile insurance is still ambiguous for us. Financial experts assume cost as one of the factors. But the auto owners fail to understand the high risk involved in not purchasing insurance. These people jeopardise their personal safety along with the financial security of others.

Motorists can not be blamed for not obtaining automobile insurance but the rising theft of number plates shows that the miscreants are trying to avoid automobile insurance as well. Well-off people are involving themselves in crime due to severe financial crisis. The lending institutions have limited the option of refinancing due to the serious threat in the current economy.

The limitations on mortgage loans are increasing with the passage of time so it is difficult to acquire credit. Credit card debt is a burning issue in the U.K so restrictions are being imposed on credit card limits. Financially strapped people are grappling with high fuel and energy costs as well. There is a rise in the number of people submerged in the sea of debt.

In this situation refinancing or a consolidation does not seem to be the right solution for the indebted people. As insolvency rates are increasing in Britain individuals are selecting bankruptcy over IVA.

In such a catastrophic financial situation if you think that automobile insurance is a secondary concern then you've got to be kidding! If you face a serious injury in a car accident then you know the consequences. You might be unable to work for a minimum period of 6 months and the piling bills will keep on hovering over your head. Insurance will help to anchor you down so automobile insurance should be a target on your financial chart that you maintain. You might face problems in paying the premium for your automobile insurance but you might reap a good result in the long run.

This is a guest post by Kevin Craig who is a financial writer for various finance related communities. He has been providing advice on debt management since 2007. You might like to visit the page debt settlement Florida. With his advice many are now living a debt free life.


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