A recent study by Forbes Advisor, the comparison and financial guidance platform, reveals that one in five UK motorists say they have given up their cars, as people continue to struggle during the cost of living crisis. Is that really true, does that tally up with the traffic volumes you are seeing on UK roads?
Anyways, Forbes reckon that one in five have had to dip into ‘rainy day’ savings or even take out a loan (19%) to cover the day-to-day costs of running their cars. That sounds more likely. More than half of 25-34 year olds said that driving has become unaffordable. Two thirds of all drivers agreed that the rising cost of living has made owning a car more challenging, with 68% worried about being able to afford fuel for essential journeys like commuting to work or the school run. A third of drivers said they are actively driving less in a bid to keep motoring costs down, with 13% asking employers for more flexible working and a quarter cutting all non-essential commutes. All that is good news for insurance brands, assuming the research is accurate, as fewer miles means a reduced risk of collision.
NO SERVICING, FAKE MILEAGE ESTIMATES But wait, it isn’t all chips n gravy. Some drivers admitted to taking risks to cut costs, with 16% skipping essential car maintenance such as replacing worn tyres and forgoing services. A further 15% said they had entered false information on an insurance quotation – such as saying they parked on a drive or had lower annual mileage than was true – in an attempt to get a lower premium. Oh dear, non-disclosure back in vogue as the cost of living rockets upwards. 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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