Motorists have reduced auto insurance coverage during the recession

During the recession, motorists have cut back on their car insurance policies, according to a new report, thereby saving money, while assuming great financial risks. The study by analytics firm Quality Planning found that the rate of people opting out of collision and comprehensive insurance rose from 2006-2010, especially in those cars 10 years and older. (Quality Planning validates policyholder information for auto insurers.)

Collision insurance coverage pays for damage to vehicles that are caused by an automobile accident. Comprehensive insurance is similar to collision, but covers damage caused to your vehicle by things outside your control such as theft, vandalism, flood, or fire.

The study found an increase from 53 to 63 percent of older vehicles without collision or comprehensive coverage over that period, saving drivers about $229 a year. For new cars, most kept the full coverage, mostly because banks or lien holders required it and they didn't want risk on a newer car. During the 2006-2009 time period, the average insurance for new vehicles was $913 and for cars 10-years or older, $528.

For those owners who did purchase collision and other comprehensive policies, there was a large increase in opting for higher deductibles, risking more out-of-pocket cost in the event of a crash.

From 2006-2009 there was a decline of about 9 percent for those that had low collision coverage (below $250). Those who had higher deductibles ($251-500 and $501-$1000) increased between 1.6 and 4.9 percent each year. New car owners tend to choose lower deductibles to protect their investment.

When times are tough, it is natural to seek ways to save money, but it is important to make sure you continue to have adequate protection. Savings can often be found with comparable coverage by simply shopping around. A Consumer Reports survey last fall found that more than 60 percent of respondents had been with the same carrier for 10 or more years. Being with the same company, accident free, can lead to discounts. Make sure you're getting them and that the rates are competitive.

For more on saving on car insurance, see our car insurance Ratings and advice. Also check out our guides to buying a new and used car.

—Liza Barth