The ongoing credit crunch crisis has meant that many Britons are cutting back on their spending resulting in reduced number of people taking out car insurance, according to moneysupermarket.com.

However, the consumer comparison website now says that taking out car cover is vital for every motorist regardless of the economic slowdown.

Peter Gerrard, head of insurance at the firm said: "You have got to have car insurance."

Moneysupermarket suggests that Brits cut back on their social outgoings in order to ensure that they can still afford an adequate level of cover for their vehicle. Additionally, the website recommends that motorists shop around each year in search of better deals which will mean that they can find cheaper insurance and still save money.

At the same time the website says that younger people can choose to drive on their parents' policy as this will significantly lower their premium.

According to MoneyExpert.com, more than six million people switched car insurance provider over the last six months.

A recent report by insurance company RIAS warned that British drivers who choose not to take out car insurance in order to save money are foolhardy.

RIAS said that driving without car cover was against the UK laws adding that those found guilty running the risk of a criminal record while those who do not take out cover cost their honest counterparts extra money.