One in five drivers say they have given up their cars as they look for ways to save cash amid the cost of living crisis.
Most drivers questioned in a recent survey said that they had taken less drastic action to cut their motoring costs, including driving less often or dipping into savings to cover costs. Worryingly, some even admitted to skipping servicing or repairs or even filling insurance forms with false information in a bid to reduce their annual premiums.
The study by comparison and financial guidance platform Forbes Advisor surveyed 2,000 licence holders and found that:
Read more: Drivers 'denied 10p cut in petrol prices' as major retailers hiked profit margins, study shows
- Almost a third of drivers (31%) say they are driving less now to keep costs down
- More than two thirds are worried about affording fuel for essential journeys, such as commuting to work or the school run
- A further 20% of drivers are having to use 'rainy day' savings to run their car, while 19% have resorted to a loan
- Some (15%) also admitted to giving inaccurate information to their insurance providers in an attempt to get cheaper premiums.
According to Autocar, motorists have faced a perfect storm of sharply rising fuel prices, increases in car insurance and company car tax, higher servicing prices, higher borrowing costs, rising new car prices and even the prospect of paying to park at work, all against the backdrop of rising inflation.
Car tax rose by £10 for the standard rate in April, while those with the worst-polluting cars faced a hefty £120 rise, along with soaring fuel costs, which reached a peak of £1.89 per litre of unleaded petrol in July, putting the cost of filling a family car at around £100. Although fuel prices have fallen since then to an average of £1.66 per litre, motorist organisation the RAC has decried fuel vendors for failing to pass failed to pass on to motorists the biggest drop in wholesale fuel in August.
Car owners have also been hit by hefty insurance hikes. In 2021, the average price paid for comprehensive motor insurance was £434, but as the year drew to a close, this figure rose by £11 to £440. The Association of British Insurers says this is evidence that continued cost pressures on insurers could be starting to filter through to the cost of cover.
Those buying a used car faced an average price increase of almost 28% according to Cap HPI, while some new car prices have increased by as much as 25% over the past three years.
Kevin Pratt, car insurance expert at Forbes Advisor UK, says: “The cost of living crisis is affecting millions of people across the UK, and drivers are feeling the impact in the form of higher pump prices and general running costs. Little wonder so many of us are trying to find ways to cut how much we spend by using our cars less often.
“But we should never let the desire to save money impinge on safety. Delaying an essential purchase like new tyres could be a life or death decision. The same applies to missing regular services, which can not only keep the vehicle roadworthy but can maximise its operating efficiency, longevity and resale value. Entering inaccurate information on an insurance application is also a no-no. You might save a few quid, but you could end up without a valid insurance policy if you have to make a claim, and the effects of that could be ruinous. Much better to shop around for a cheaper quote as part of a money-saving drive across all your household finances.”
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