Is Your Car A Financial Burden?

Spiralling fuel prices, increased road tax, motor insurance premiums, garage bills, and parking charges have all contributed to the cost of motoring rising to an all-time high this year. This is a level almost double than that of 20 years ago, on a mile-for-mile basis. Roughly 25% of respondents in a recent survey were of the opinion that the cost of motoring outweighs its benefits, but, by the same token, less than 10% were able to give an accurate estimate of how much motoring is actually costing them each year.

Counting The Cost of Motoring

Nearly 70% of drivers in the United Kingdom have responded to rises in the cost of motoring by reducing the number of journeys they make, and nearly 50% have changed the way in which they drive to reduce fuel consumption.

This latter tactic is reasonable enough, given that a sudden acceleration and braking, or speeding, can increase fuel consumption significantly when compared with driving at a steady speed, within speed limits. Driving at 85mph actually uses 25% more fuel than driving at 70mph, not to mention the increased likelihood of an accident, which can add further to motoring costs through inflated insurance premiums. Similarly, simple maintenance measures, such as maintaining tyres at the correct pressure, can also decrease fuel consumption by a small percentage. Incidentally, tyres that are under inflated by as little as 10% actually wear out 15% faster than those that are operated at the correct pressure.

Don't skimp on safety

What is alarming, however, is that 15%, or more, of British motorists are attempting to cut motoring costs by reducing the regularity with which their vehicles are serviced, as well as cutting back on general maintenance, and roadside assistance. This appears to indicate a certain lack of understanding of the cost of motoring, in the broadest sense of the phrase, because such measures could have serious implications for road safety, first and foremost, but also for the resale value of vehicles. It is true that in the region of £10 billion was spent on vehicle repairs and servicing in the United Kingdom last year, but prices especially labour rates, do vary widely amongst garages. Cash-strapped motorists may be better advised, therefore, to shop around for the best rate available locally, rather than forego servicing altogether, and place themselves at risk of physical, and financial, harm in the future.

Save on car insurance

Motor insurance premiums are another area where savings can be made without unnecessary risk. If you own an older car, for example, now may be the time to switch from comprehensive to third party, fire and theft cover, or you might like to consider adding a car alarm, or immobiliser, or parking your car in a driveway, or better still, a garage, to bring the premium down. It is a good idea to review your motor insurance needs periodically as your existing policy may include an annual mileage that is now substantially overestimated. It may include use of a vehicle for business purposes, which is no longer the case.