More than 10% of British motorists have no idea what they are paying for when buying car insurance, according to research from online motor insurer Easy Money car insurance.

In addition to 11% of motorists admitting they didn't have any idea what their car insurance covers, the easyMoney and YouGov research revealed that another 14% don't think they would be covered if their car was stolen and 15% wouldn't expect to be covered against fire. In fact, everyone with comprehensive or third party, fire and theft car insurance would be insured for fire and theft. Female motorists are the least aware with 14% oblivious to what their premiums are paying for. Whilst not understanding what is covered by their car insurance, 68% said they were confident that it provided value for money cover.

With so much choice and policy options available, it could be that many motorists are paying for cover they don't need. The study showed that in the last five years, 79% haven't required a replacement windscreen and 96% didn't need to replace a lost or broken key, so many motorists could save money by thinking about what cover they really value and what they could do without.

And it appears that motor insurers are making an attempt to cater for this with a number of no-frills car insurance policies launched to meet the demand for flexible cover. In addition to easyMoney, Norwich Union Simple Cover and Tesco Value car insurance are two of the most recent additions to this new sector of the market. Both policies offer motorists comprehensive cover with many policy options stripped out. Be aware of higher excesses though and always read the small print.

This comes at a time when many people are looking to cut back on spending with over two thirds of people (36%) saying they intend to save money during 2007. Yet again, women are leading the way with 41% looking to economise.