The number of "essentials" car insurance policies has nearly tripled since the introduction of the General Insurance Pricing Practice (GIPP) in 2022.
New data has found that these cheaper insurance options have increased from just eight to 22 policies in the market.
Often labelled as "essentials", "light" or "value" policies, these products typically offer lower prices for motorists looking to save money.
However, insurance experts are warning consumers that the reduced premiums come with significant reductions in coverage.
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Millions of drivers could be left without essential cover depending on their car insurance policy
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These lighter policies often exclude standard coverage for windscreens, personal belongings, lost or stolen keys, and child car seats.
While the increased availability offers more choice and flexibility for consumers, it requires careful attention to policy details.
Tom Banks, car insurance spokesperson for Go.Compare, explained: "Since GIPP came into force in 2022, we've definitely seen an increased number of 'lighter' policies introduced into the market.
"This is generally good news for customers because it offers more choice, more flexibility and cheaper options.
"However, customers have to be aware that, with this type of policy, they may be getting less cover than they would have been previously."
Banks added that 30 per cent of Go.Compare customers have children under the age of 60, with many of these needing to use car seats.
He said it is "worth checking" that these drivers have child car seat cover, as many lighter practices may not have this as standard.
The warning comes as more motorists consider these budget-friendly options amid rising insurance costs.
The GIPP was introduced by the Financial Conduct Authority in September 2020 and officially implemented in January 2022.
This regulation required insurers to offer identical pricing to both new and existing customers, effectively ending the so-called "loyalty penalty".
In the year following GIPP implementation, car insurance prices rose significantly, according to Go.Compare data.
Banks noted: "The increased number of 'lighter' policies that have been made available is a good thing because it provides more choice for motorists but this is also why it's so important to check the levels of cover in a policy before you buy.
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GETTY"With car insurance prices having increased in recent years, customers are understandably trying to make savings where they can, but it's important to make sure you're still getting a policy with everything you need."
He advised motorists to be aware of factors affecting their premiums, such as location, age and mileage.
