Beleaguered Drivers Downsize on Car Choice as Rising Motoring Costs Take Their Toll

CHESTER, England, July 25, 2011 /PRNewswire/ –

        - Half of motorists plan to swap to a more fuel efficient car
        - Shopping around at renewal time is crucial - motorists can save
          GBP319 a year on average

Two thirds of motorists (65 per cent)[1] admit record fuel prices
coupled with the rising cost of car insurance will impact their choice when
it comes to purchasing their next vehicle, according to new research from
moneysupermarket.com [http://www.moneysupermarket.com/car-insurance ].

Britain’s number one comparison site found drivers are facing tough
decisions when it comes to their finances, with many looking at changing the
car they choose to drive as a way to cut costs. Over half (55 per cent) say
they will choose a more fuel efficient model next time, and more than a
third (38 per cent) will look to purchase a vehicle that is cheaper to
insure or that has a lower road tax. Almost one million motorists[2] stated
they would sell their car altogether.

Pete Harrison, car insurance expert atmoneysupermarket.com
[http://www.moneysupermarket.com/car-insurance ], commented: “It is not
surprising so many motorists are rethinking their vehicle choice given
escalating fuel and insurance costs. Our analysis shows car insurance prices
increased by 31 per cent in 2010[2], and we have seen similar rises in 2011.
This, coupled with rising fuel costs, iscreating extra pressure on household
spending, and forcing many families to rethink their motoring needs.

“Looking for ways to cut costs is a priority and drivers can find ways
to help ease the cost of running a vehicle. Reducing fuel consumption
through car sharing, avoiding using the car for short journeys and driving
more efficiently are ways motorists can help to reduce the impact of
spiralling fuel costs. It is also crucial drivers shop around to find the
best deal on their insurance policy as they could save themselves over
GBP319 by not accepting their renewal quote and looking elsewhere – helping
to mitigate some of the impact of rising motoring costs.”

moneysupermarket.com’s top tips for lowering the cost of your car
insurance:

Pay annually rather than monthly: Although annual payments require a
larger initial outlay, in most cases the total cost over a year works out
cheaper than monthly payments. Many insurance companies charge interest if
you choose to pay monthly which can further increase the overall cost of
your policy. If you cannot afford to pay for your insurance in one lump sum,
consider using a 0 per cent purchase credit card and fund the premium on
this. However, make sure you pay off the balance within the promotional
period or 12 months whichever comes first.

Reduce your annual mileage: the more miles you drive, the more time you
spend on the road and the more likely you are to have an accident. Reducing
your annual mileage will bring down the cost of your premiums.

Notify change of job: Renewal quotes are based on that same mileage
figure, so if you change your job or other circumstances mean you travel
more or less than previously, you should always mention this to your
insurer. If you can show your insurer that your usage has reduced then this
can result in a lower quote.

Vehicle Security: the more secure your vehicle, the less likely it is to
be stolen, and the less likely your insurer is to have to process a claim.
As such, car insurance companies will reward you for fitting things like an
alarm and immobiliser if your car does not already have them. Check with
your company to see what will decrease your premium the most, as some
security fittings can be quite expensive – you want to make sure the outlay
is countered by the saving on your cover. Where you park your vehicle is
also important – garaging a car will reduce your premiums – but make sure
you do actually use it otherwise any subsequent claim could be turned down
if you don’t.

Driving behaviour: being caught speeding or committing other traffic
offenses will increase the cost of your car insurance, or even jeopardise
your chances of obtaining cover at all. The closer to the letter of the law
you drive, the better – both financially and in terms of safety for yourself
and others.

Modifications: if you modify your car in any way, you should tell your
insurer. Performance or style modifications will always increase your
premium – if you are searching for cheap car insurance you should keep any
changes to a minimum.

Main Driver: if a car in the house is shared equally, but one driver has
significantly more experience or fewer penalty points, naming them as the
main driver (with you as a named driver) can save you money on your car
insurance.

Notes to Editors:

[1] Research undertaken by Opinium Research based on poll of 2,030
British adults carried out May 28 – 31 2011.

[2] 33 million drivers in the UK (Department for Transport 2006
figures). 3% stated they would sell their car = 990,000

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SOURCE moneysupermarket.com