During Recession Consumers Should Keep Insurance

To help consumers, President Barack Obama has been advocating health care reform, which could pressure private insurers to keep premiums reasonable. And state regulators limit how much insurers can charge for coverage such as auto and homeowners insurance.

But many consumers are still cutting back on all types of insurance.

Al Tobin, managing director and leader of Aon Corp.'s property practice, said some clients aren't renewing the same limits on what are known as specialized policies, such as California earthquake coverage, because they can't afford them. Aon, an insurance broker, helps companies find commercial insurance coverage.

"We have seen a trend for quite a few months where clients are buying less," he said.

Insurers don't release figures on how much their customers are reducing or ending their coverage. But according to an Insurance Resource Council survey that questioned 1,000 adult consumers by telephone in December, 28 percent with at least one vehicle shopped for lower auto insurance rates, while 9 percent said they had canceled or decided not to renew their auto coverage.

Five percent of homeowners surveyed said they had canceled or not renewed their homeowners insurance, as did 14 percent of renters.