Motorists who downgrade their car insurance policy may lose out in the long run, it has been warned.

Insurance firm, Swinton has advised its customers that reducing their car insurance cover could end up costing more in the long run if they have an accident which was their fault.

Development manager, Steve Chelton of Swinton said: "There is a common misconception among motorists that choosing a policy which offers reduced cover will be significantly cheaper than a comprehensive policy.

While reducing cover may offer a minimal saving short-term, it could cost drivers a lot more down the line if they are involved in an accident that is their fault.”

The warning came after the insurance firm found that more motorists are opting for third party car insurance rather than comprehensive insurance cover as a bid to drive down costs.

According to the firm, the number of motorists choosing third party, fire and theft insurance cover has increased in the last 12 months.

The insurer found a 10 per cent increase in the number of customers opting to switch from comprehensive cover to third party cover when it was time to renew their policies.

The firm said that the increase in those opting for third party insurance cover was down to the current economical climate and that more people are buying second-hand cars with little value.

"We would advise motorists to speak to their broker if they are considering downgrading their policy as it is vital they understand the changes to their cover when reducing their indemnity to third party, fire and theft," added Chelton.