Research carried out by swiftcover reveals that a significant number of British drivers could be unwittingly putting themselves under financial pressure due to a lack of comprehension about what is and what is not covered by their insurance.

In the company's study more than a third of motorists were shown to be unaware of the effects of underrating their mileage in an attempt to reduce insurance costs. Some 25.8 per cent of respondents reported to be unaware whether driving beyond their stated amount of miles would have an impact on their insurance cover, with 16.1 per cent claiming that it would not have an effect. However, it was stated that a failing to contact their supplier upon exceeding their mileage may result in motorists invalidating their cover. As such, consumers were urged to constantly check their mileage and to get in touch with their insurance provider should they notice something is awry or their circumstances change.

Further research showed that more than a fifth of motorists are unaware whether or not they will be covered should they have an accident while smoking or eating at the same time as driving. This figure comes despite just under two-thirds (65 per cent) of respondent stating that they consume while on road, with over one in three choosing to smoke.

The financial services firm pointed out that although eating or smoking while driving is not a criminal offence outright, should they suffer an accident while doing on these things than they could be accused of being negligence. It was purported that motorists' reaction times can be up to 50 per cent slower should they be talking on the phone or having a cigarette or snack. Meanwhile, swiftcover stated the Highway Code recently listed smoking and eating as dangerous distractions when behind the wheel.

Following on from being forced to dip into their own pockets and purses, it may be possible that those drivers with inadequate levels of insurance might find that their ability to manage other demands on their spending. Such areas could well include loan, credit and store cards, utility bills and mortgage or rent repayments.

In addition, the study indicated 29 per cent of drivers think that their policy will automatically cover them should they get behind the wheel of a friend or partner's automobile.

Tina Shortle, spokesperson for swiftcover, said: "While choosing the lowest price car insurance policy is most people's objective, it is also important to know exactly what is and isn't covered. Drivers make a lot of assumptions about their policies, so it's best to read all terms and conditions carefully and to regularly review the terms."

Consumers looking to buy a new car over the coming months might wish to consider taking out a secured loan to finance their purchase. In selecting this type of loan, borrowers may be able to select a top-of-the-range model quickly and effectively, in addition to being left with enough spare cash to help get a comprehensive insurance policy.

A secured loan could also be recommended for those wishing to meet the cost of damage to a sailboat. In a study conducted by Saga in April it was shown that hitting an underwater object while on the sea will cost the typical consumer 2,419 pounds. Meanwhile, the average burglary claim stands at 1,820 pounds.