7 November 2024

2.6 million Drivers Parked up for good because of Rising Cost of Motoring

Drivers are giving up on driving as motoring costs rise

Research from Citizens Advice has found that 2.6 million people have been driven off the roads by high insurance costs over the last year.

Citizens Advice’s research shows:

900,000 extra people have found car insurance unaffordable compared to last year. 3% of adults have not driven their car over the past year because of the cost of insurance. 2% bought car insurance last year but then cancelled it due to financial problems.

Citizens Advice are concerned that the higher costs of insurance could lead to an increased number of uninsured drivers, resulting in higher costs for those with insurance.

Clare Moriarty, chief executive of Citizens Advice, said that while having a car is essential for many, action was needed.

“Bold action must be taken to tackle skyrocketing costs, including targeted support for those struggling most.

“We need a market that works for everyone, leaving unaffordable insurance premiums behind once and for all,” she said.

Who’s is impacted?

One in five drivers, about 7 million people, now turn to borrowing money, reducing essential expenditure, or skipping other payments to pay for car insurance.

25% of those on benefits have fallen behind on their car insurance premiums, compared to 11% of all drivers.

Key recommendations for getting the lowest insurance premium

Run your car insurance search through the MoneyMaxim car insurance service around 26 days before your renewal date, as that's when its normally cheaper. Buy at that time if you like the price as from then until renewal prices tend to rise.

Never just take the auto-renewal renewal you are offered - always compare. Even if your new premium is cheaper you can find other insurers can be cheaper still.

Do see if there is anything you current insurance can do to reduce the premium - but its best if before approaching them you do your research first so you can talk about better premiums you’ve been offered elsewhere.

If you can pay your insurance in one go - interest rates offered by insurers can be eye wateringly high - and its almost always cheaper paying annually.

If you are able to think about using an interest-free credit card uif you need to spread the payments, but make sure you can afford to pay off the card in full before any interest starts to be applied.

Add another driver, if they are 'low risk' as this can reduce your premium although never pretend that they are the main driver as this is called fronting and is deemed to be insurance fraud.

Get a black box or telematics to reduce your premium. These devices can work well uif you are a safe and steady driver, although they may involve curfews, prohibiting late night driving.

Get your mileage right - if you say you are going to drive more miles that you do it will cost you more - but if you declare fewer miles this can mean a heavy insurance adjustment premiums for the change during the course of the policy term, or even worse might invalidate your policy.