Home | Blog | The cost of motoring accelerates 8% in 2024

By Craig Perry, 29th February 2024

Category: Car insurance

In a changing world for drivers amid rising economic uncertainty we undertook a survey to find out more about how people were coping with the financial challenges of owning and running a car. One of the more disconcerting trends was the revelation that one in seven people (15%) are contemplating giving up driving over the next 12 months. This admission by our survey respondents underlines the significant financial strain that escalating motoring expenses have placed on individuals and their daily lives.

For many the decision to give up driving isn't just about losing a mode of transportation. Our research highlights that 40% of respondents believe that relinquishing their car may necessitate changing or giving up their current job. Additionally, 18% foresee a dramatic decrease in their own or a loved one's independence, while 24% depend heavily on their car for social interactions and to stay connected with family and friends.

Rising car insurance premiums emerge as a central concern, with over half (51%) of car owners expressing worry about the mounting costs. Our survey indicates that 11% of respondents are "very worried," while 40% are "quite worried" that the increasing insurance prices might force them to stop driving. Alarmingly, 2% of respondents have already made the decision to give up driving due to the cost of insurance.

To cope with the financial strain, one in five car owners (19%) admit to not being completely truthful when renewing their car insurance. This includes actions such as providing a reduced annual mileage (9%), falsely claiming the car is housed in a garage (5%), and incorrectly stating the car is never used for work (4%).

It’s concerning that this practice of providing inaccurate information during the car insurance renewal process is set to get worse. Around 16% of respondents admit that they would in future be tempted to conceal or change certain facts and 15% stating they were uncertain they would be completely transparent. Providing a slightly reduced annual mileage (18%) and falsely claiming the car is parked in a garage (13%) were identified as the most likely areas where owners would consider providing inaccurate information.

Our overall findings have revealed a change in UK motorists’ driving habits, but the reliance on cars is not set to diminish. In response to rising motor insurance premiums, our newly launched car insurance policies aim to cut insurance costs for environmentally conscious drivers by negotiating special deals with insurers.

We’re also rewarding policyholders for eco-friendly driving through discounts on weekly supermarket shopping. We hope that these measures will put some money back into drivers’ pockets and go some way to ease the financial challenges associated with driving.