Cost Of Living Forces Some Drivers To Cut Corners

Is the rising cost of living likely to cause consumers to lie about their jobs, commuting habits and more to get cheaper car insurance? Could be. They might also be driving cars that haven’t had a recent service, brake or suspension faults fixed and more. Here’s the word;

Data released by the Society of Motor Manufacturers and Traders (SMMT) shows that used car sales slumped by 8.5% in 2022 due to a lack of choice, forcing people to hold on to their cars for longer. During the same period, the average cost of a used car rose by 2.7%, building on the 31.3% rise in January 2021 – that’s more than a £4,000 increase in the average cost of a second hand car, from £13,931 in May 2020 to £18,119 in January of this year.

With used car sales down and the cost of motoring up, people will need their cars to last longer and will be looking for ways to reduce their motoring expenses. Research from Forbes Advisor has shown the steps drivers are taking to save money, with an alarmingly high number willing to risk breaking the law:

• A third (34%) had cut down non-essential commutes

• A quarter (24%) opted to pay for insurance monthly rather than annually

• 22% have tried to save money on their water bill by not washing their cars

• One in five (22%) have avoided essential car maintenance such as MOTs, changing bald tyres, services, and ignoring dashboard warning lights

• A fifth have told a ‘white lie’ to an insurance provider for lower premiums

• 19% have asked an employer for hybrid working to reduce their commute

• 19% have added additional drivers to their insurance policy to reduce premiums

• 13% have switched to a hybrid or electric car

• More than one in 10 (12%) have joined a car-sharing scheme.

Kevin Pratt, car insurance expert at Forbes Advisor, says:

“With less choice, higher prices and the cost of essentials such as fuel and energy remaining high, it’s no wonder so many of us are trying to find ways to cut how much we spend on motoring. But we should never let the desire to save money compromise safety or the ability to make a successful insurance claim, should we need to. Not changing worn tyres is illegal and unsafe, and just not worth the risk, while skipping services and other repairs will likely only save up more trouble – and bigger bills – for the future.

“With more of us likely to need to keep our cars for longer, proper maintenance is even more important. Providing inaccurate information to your insurer to get cheaper premiums is a huge false economy. Why save a few quid to effectively render your policy worthless? If you can’t claim on your insurance – thereby protecting yourself and others financially – then you’ve not really ‘saved’ any money at all.”