Credit crunch leads motorists to downsize cars to save costs
Published: 2 February 2009
By MoneyhighStreet Staff Leave a Comment
Updated: 2 February 2009
A Liverpool Victoria (LV) survey has found that almost 20% of drivers have downsized or sold a car since the start of the credit crunch to save costs.
The cost of fuel was given by over 60% of drivers as the reason for downsizing over the last 18 months.
Car insurance premiums can weigh in as a heavy cost and as such nearly a third downsized to get cheaper car insurance.
Not only this but 23% of those who responded to the Liverpool Victoria survey said they would consider buying a second hand car to help reduce the insurance costs.
Car insurance costs are predicted to rise significantly this year according to Patrick Smith, chief executive of Swinton Group. He recently said that ‘Premiums are 20% lower than they should be. They are seriously adrift.’
Whilst their predictions of the size of the increase differs, the AA also predict a rise for this year of close to 10%.
Getting the car insurance cover that meets your needs at the best price is becoming increasingly important for many.
The comparison website Gocompare.com, claim to help people reduce their car insurance premiums.
According to Hayley Parsons, chief executive of Gocompare, during the last three months of 2008 the site helped people reduce their car insurance premium by an average of £207.