Archive for the ‘Study’ Category

Majority of car owners struggling to cope with rising costs

Posted on: July 25th, 2012 by Richard Raw No Comments
Motorist fills car with petrol

Motorists cite ever-increasing petrol costs as the main source of their frustrations. Photograph: Sarah Lee for the Guardian

High fuel costs, surging insurance premiums, badly maintained roads and continuous roadworks are forcing motorists to change their driving habits, according to research by Motors.co.uk.

Its latest survey found 75% of drivers were frustrated by the rising costs of owning a car, with nine out of 10 citing escalating prices of petrol as their main complaint. Another 71% were put off by the countless potholes and neverending roadworks plaguing local roads.

Many of those polled said they were leaving their cars at home as a result.

The online poll of 2,669 adult motorists found that four in 10 are cutting back on time spent on the road and looking to public transport (20%), walking (32%) or cycling (5%). Others looked elsewhere to trim costs, such as reducing their grocery bill or cancelling gym memberships.

Another 71% believe that government policies are not on their side, despite the postponement of a 3p-a-litre rise in fuel duty in June. Originally planned for August, the tax hike will now not be implemented until next January.

Phill Jones, Motors.co.uk’s commercial director, said: “Not only are drivers tired of the cost of driving, they’re exhausted by the state of the roads, maintenance of which has badly fallen by the wayside.

“The number of consumers cutting back on driving is frankly alarming, and it is imperative that both the government and the local councils do all they can to get Britain back on the roads.”

Petrol prices are moving upwards again after a 10-week slump. After bottoming out at 130.81p a litre on 1 July, average petrol prices at the pumps in the UK have rebounded to 133.12p a litre, according to the AA, which expects prices to climb even further over the next two or three years.

The average cost of motor insurance rose by 2.1% for the three months to the end of June, according to the AA Insurance Premium Index. Some insurers policies, however, are cutting prices to stay competitive.

In late 2011, a survey conducted by the AA found that 76% of its members were cutting back on car use, other spending, or a combination of the two. Its findings have also shown that the average costs of owning a medium-sized family car rose from £5,519 a year in 2011 to £5,983 a year currently, based on 10,000 miles of driving.

AA spokesman Luke Bosdet said that consumption is expected to continue to fall as petrol prices remain volatile. “It’s been going on for so long that it is now a mindset amongst drivers and businesses to reduce fuel consumption.”

The Department for Transport’s national travel survey also shows that each driver clocked up an average of 3,376 miles a year in 2009 and 2010, down from 3,679 miles in 2004 and 2005. In that same period, public transport use rose from 722 miles to 745 miles.

Danny Connolly from east London, recently switched his golf club membership from Kent to one nearer his home to save on petrol. “At the end of the day, I couldn’t afford it,” he said. “It was costing me more for petrol than the golf membership.” The window cleaner, who makes three trips to the golf club a week, was spending £120 a month on petrol. His golf membership cost £100 a month.

Connolly, a divorcee who earns about £35,000 a year, has also cut down on the number of times he visits his children in Essex. “The cost can really add up. It’s insane,” he said.

Millie Plinston, an architect who lives in London, will be visiting her mother in Dorset by train next year. The train journey to Dorset and back, she said, costs £20. The same trip by car costs double that. “We use the car minimally,” said Plinston, who does not drive to work. “Next year, when my daughter is older, we’ll be travelling to Dorset by train instead.”

Original source – http://www.guardian.co.uk/

63% of drivers in UK staying with existing insurer

Posted on: July 18th, 2012 by Richard Raw No Comments

Almost two thirds of British drivers (63 per cent) haven’t switched insurer in the last 12 months despite record high car insurance premiums, according to research from leading comparison site Gocompare.com.

Worryingly, 31 per cent of drivers haven’t switched for more than three years.

In that time, the average fully comprehensive car insurance premium has more than doubled.

The figures show that it isn’t just car insurance where households are potentially missing out on savings.
The switching figures for home insurance and energy are even worse with 80 per cent of households sticking with their gas or electricity supplier and 72 per cent saying they haven’t switched home insurer in the last 12 months.

Over a quarter (26 per cent) of Brits admit they have never switched any of the top 20 personal finance products, with bank accounts topping the least-switched list:

Bank accounts (41 per cent of people have never switched)
Broadband provider (29 per cent)
Savings accounts (23 per cent)
Credit cards (20 per cent)
Energy provider (16 per cent)
Home insurance (12 per cent)

John Miles, business development director at Gocompare.com, commented,
“There has been a cooling off in terms of car insurance premium increases in recent months but they remain at record high levels.

BMW Boot

BMW Boot

If drivers haven’t switched for a couple of years they could well be paying too much and may be able to find the same cover at a much cheaper price by shopping around.

“Making comparisons for everyday financial products can save you a packet. Using Gocompare.com customers could save up to £395.19 by simply changing their motor insurance policy.

“There are still opportunities for real savings to be made – but, as our survey demonstrates, a large number of people haven’t switched despite the obvious benefits.
In particular, for many drivers, car insurance premiums remain close to record high levels. Average premiums have more than doubled in the last three years, so motorists can make some significant savings by checking deals on comparison sites.

“Our advice is simple – never just accept your insurance renewal quote without checking that the new premium is competitive, and take time at least once a year to check that you are not paying over the odds for your other household bills.

“Comparison sites like Gocompare.com provide fast and up-to-date information on what’s available, helping people access not just a cheaper deal, but enabling them to more easily compare products to find the best value for money.”

Yorkshire drivers suffer the most congestion

Posted on: July 11th, 2012 by Richard Raw No Comments

If you thought your commute was bad, spare a thought for the drivers of Yorkshire.

The Leeds-Bradford area is the most congested in Britain, with drivers spending 86 hours a year stuck in jams.

Traffic in the conurbation increases journey times by an average of 28 per cent – and up to 63 per cent in the morning rush hour, a study has found.

Even Londoners have it easier, with drivers in the capital spending 74 hours a year in jams.

The traffic research, by satellite navigation firm TomTom, found Warsaw, in Poland, to be the most congested city in Europe. Leeds-Bradford came seventh and London eighth.

The research by satellite navigation firm TomTom looked at 31 cities across Europe with populations of more than 800,000.

The two Yorkshire areas have suffered a five per cent increase in congestion since last year, the biggest of anywhere in Europe.

Traffic Jams in Bradford

Traffic Jams in Bradford

Drivers there face a delay of 36 minutes for every hour they drive in peak periods.

Third-worst in Britain was Birmingham where drivers spend an average 73 hours a year stuck in traffic jams.

Traffic in the West Midlands city is delayed by an average of 21 per cent because of congestion with delays of up to 28 minutes per hour during peak periods.

The worst days for congestion are Tuesday and Thursday in Leeds-Bradford and Birmingham while Mondays and Thursdays are worst in London.

The index is based on real travel times data captured by vehicles driving the entire European road network and compiled from five trillion data measurements.

The overall congestion level for all cities analysed in Europe is 24 percent – meaning peak journeys are a quarter slower than when traffic is flowing freely.

A spokesman for TomTom said: “It is amazing that Leeds-Bradford has overtaken London in our congestion ranking, with journeys in the area taking up to 63 per cent longer in the morning rush-hour.

“It shows that congestion is not limited to the capital, but is rapidly spreading around the UK’s regional cities.”

Harold Goddijn, chief executive officer of TomTom, said: “Over the years, with the help of our customers, we have built the largest and most accurate database of travel times in the world.

“When we combine this travel database with our detailed real-time traffic information and routing technology, we can not only pin point congestion, but can guide drivers away from congested areas onto faster routes.

“Even when only a percentage of drivers use a different and faster route, the available capacity on the entire road network increases, which benefits all drivers.”

Source: Daily Mail