NU Online News Service, April 28, 4:09 p.m. EDT

Even as Americans try to find ways to reduce insurance costs, they are maintaining essential auto and homeowners coverages, according to an Insurance Research Council report.

The report, IRC's 2009 Public Attitude Monitor (PAM) titled "Consumer Response to the Economic Downturn," surveyed 1,000 adults ages 18 and older by telephone during December 2008.

It noted that just 9 percent of respondents with at least one household vehicle reported canceling or nonrenewing coverage in response to the economic downturn. Of those people, 31 percent also reported selling a vehicle, meaning that coverage was likely canceled on a vehicle that was sold, according to the IRC.

Five percent of homeowners and 14 percent of renters reported canceling homeowners or renters insurance coverage, IRC reported.

As for measures consumers are taking to reduce insurance costs, the report noted that 28 percent of respondents surveyed reported shopping for lower rates when they normally would not have done so, and 15 percent of respondents said they had increased deductibles or reduced their amount of coverage.

"These findings confirm that most Americans recognize the importance of maintaining essential insurance coverage on their homes and cars," Elizabeth A. Sprinkel, senior vice president of the IRC, said in a statement. "But they also show that Americans are willing to shop and re-evaluate their insurance needs in order to reduce insurance costs."

Speaking to the effects of the economy in general on consumers, 65 percent of respondents reported greatly reducing their expenditures on entertainment, and 37 percent reported postponing the purchase of a major household appliance, according to the IRC.

Patrick Schmid, director of research for the American Institute for CPCU/Insurance Institute of America, said 15 percent of all respondents said the economic downturn had a very substantial negative impact on their household, including such effects as job loss, loss of home, or loss of more than 50 percent of savings.

Additionally, he said another 22 percent indicated a substantial negative impact, including significant loss of savings but not job loss. For respondents in households with incomes below $50,000, 21 percent reported a very substantial negative impact, Mr. Schmid said.

The PAM survey was conducted for the IRC by the market research firm GfK Custom Research North America.

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Survey: Americans Keep Insurance Coverage As Economy Slips

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