Value Of Residing Disaster Prompts Motorists To Give Up Automobiles – Forbes Advisor UK

A shocking one in five UK motorists have told us they have given up their cars as a result of the cost of living crisis.

Our study, which asked drivers in the UK of all ages how they were coping with the rising cost of owning a car, also found that a further one in five have had to dip into ‘rainy day’ savings or take out a loan (19 %) to cover basic running costs.

Two-thirds of all drivers agreed the rising cost of living has made owning a car more challenging, with 68% worrying about affording fuel for essential journeys like commuting to work or taking their children to school.

Compare Car Insurance Quotes

Choose from a range of policy options for affordable cover, that suits you and your car.

To curb costs, a third of drivers say they are actively driving less, with 13% asking employers for more flexible working options and a quarter cutting all non-essential commutes. However, the reality is that in many jobs working from home or more flexible hours is not always possible, and ensuring children get to school isn’t optional.

This may account for the fact that people aged between 25-34 are the most likely to struggle, with more than half of them telling us that driving has become unaffordable.

Worryingly, some drivers admitted to risky behavior in an attempt to cut costs, with 16% skipping essential car maintenance such as replacing worn tires and forgoing services.

We also found that 15% admitted to enter false information on an insurance quotation – such as saying they parked on a drive or had lower annual mileage than was the case – in an attempt to get lower premiums.

Here’s a few ideas on how to get through the cost of living crisis…

Managing car expenses

  1. Cut down on unnecessary journeys – or try combining them for more efficient driving
  2. If you commute by car, see if you can car-share with a colleague who lives nearby or en route
  3. Keep on top of simple car maintenance – topping up oil and water levels keeps your car running smoothly, while inflating your tires to the correct pressure means you use less fuel and improve safety
  4. Don’t ignore dashboard warning lights or problems such as balding tires. These will get worse and be costlier to fix the longer you leave them, not to mention increasing your risk of an accident
  5. If you have a car on lease, or bought it with a loan, talk to your lender if you think you will struggle to make payments. They may be able to suggest adjustments to your repayment schedule
  6. Never give false information to your insurance provider – it’s fraud and may invalidate your insurance, and it could result in criminal charges. It may also make it harder for you to get insurance in the future. Talk to them as soon as possible if you can’t pay premiums – they are required by the regulator to give you a sympathetic hearing
  7. Use our comparison tool to see if you can save on your car insurance and breakdown cover.

Managing household debt

  1. Prioritise the most important monthly bills such as mortgage/rent, energy, council tax and broadband/mobile
  2. Pay highest interest debt off first – credit or store cards typically have the highest APRs so paying more than the minimum payment each month will help keep additional interest at bay. Use our comparison tool to see if consolidating debt is right for you
  3. Talk to your lenders/providers as soon as possible if you’re struggling to keep up with payments – there are often options available such as payment holidays or lower repayment plans
  4. Check the gov.uk website to see if you’re eligible for additional help such as the new cost of living support payments for pensioners and people in receipt of certain benefits
  5. Check if you have any insurance policies you may have forgotten about – income protection or Accident, Sickness, and Unemployment (ASU) cover, for example. Also look at the fine print, many providers offer benefits such as free legal advice if you’re made redundant
  6. Debt advice charities such as StepChange or Turn2Us are independent and free of charge, and making contact will not damage – or even be visible – on your credit file
  7. Don’t let worry, shame, or fear stop you from reaching out – avoiding the issue will only make things worse.

Kevin Pratt, our 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 such as new tires 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.”

METHODOLGY: For this study, Forbes Advisor partnered with survey house OnePoll, and asked 2,000 UK licence holders about their driving habits during the cost of living crisis.


Compare Car Insurance Quotes

Choose from a range of policy options for affordable cover, that suits you and your car.


Leave a Comment