Most of us will openly admit that our cars are very important to our daily lives. They are useful in getting to work, as well as errand running and even as part of the work itself.
With rising prices in relation to both petrol and car insurance, many of us are now taking the decision to leave our vehicles at home. As many of us rework our finances and attempt to cut back on luxuries in order to make ends meet, the decision to run vehicles has become of paramount importance to households.
A study carried out by a leading money advice website has shown that around a quarter of motorists now use their car less due to rising costs of running and maintaining their cars. Over 3 quarters of those surveyed cited rising petrol prices as the main reason for being put off driving more, with prices for unleaded now averaging 1.07 per liter across the country (although it varies by region)
But with the price of the average car insurance quote also rising as a result of the credit crunch, many of us are now opting for using public transport or bicycles in order to get around. Whilst this may seem good news for cycle manufacturers and green campaigners, manufacturers and car insurance companies could face tough times if the trend continues.
With the ongoing credit crunch having an impact on all aspects of the financial market, cheap car insurance runs the risk of becoming a thing of the past, with the average fully-comp policy coming in at around 630.
Its’ not just motorists who are feeling the strain of the credit crunch, the motor industry has seen dropping sales. And as more of us are turning to bicycles in order to help us get from A to B, the future doesn’t look promising for many manufacturers.
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