With the cost of driving continually rising, motorists have revealed what they want to see from the Government at the upcoming Autumn Statement. The research from Close Brothers Motor Finance reveals a particular concern over the price of insurance premiums - which has risen considerably over the last three years.
The soaring cost of insurance was revealed by the ONS, which showed that between May 2021 and June 2024, the quoted price of car insurance rose 82%.* In contrast, the price of consumer goods and services in general rose by 21%.
When asked which measures they would like to see to help with car ownership, 41% of respondents called for a cap on insurance premiums. A further 39% called for reduced road tax costs, while 37% called for further cuts to fuel duty.
The research also reveals that drivers are also concerned by the state of the transition to electric vehicle (EV) use. A fifth (19%) of drivers called for more incentives to help with the cost of purchasing an EV, and 17% want better EV charging infrastructure promises. 16% want incentives to help with the cost of installing EV charging points.
Asked about their concerns on owning a vehicle/driving in the next 12 months, over a third (34%) named car insurance hikes as their greatest. Just under a third (31%) are concerned by rising fuel prices. A fifth (20%) said that potholes damaging their vehicles was one of their biggest concerns. Tellingly, a quarter (26%) agree that cars are becoming unaffordable.
Measures drivers would you like to see to help with car ownership:
1. A cap on insurance premiums - 41%
2. Reduced road tax costs - 39%
3. Further cuts to fuel duty - 37%
4. Continued freeze in fuel duty - 35%
5. Incentives to help with the cost of purchasing an EV - 19%
6. Better EV charging infrastructure promises - 17%
7. Incentives to help with the cost of installing EV charging points - 16%
8. Subsidised road tax, congestion zones, ULEZ for EV drivers - 13%
9. Tax relief for work related car use - 13%
John Cassidy, Managing Director of Sales at Close Brothers Motor Finance, said: “Despite being a necessity to so many of us, there is a danger that motoring will be given undue treatment at the upcoming Autumn Statement. Costs are rising across the board for drivers, and our latest research ought to be a wake-up call to the Chancellor who has the power to address this through policy. Taking action on insurance premiums, road tax and fuel duty would be popular interventions as shown by our survey.
“The cost of car ownership is rapidly becoming unaffordable for many motorists at a time where many are already feeling a financial squeeze. We have already seen manufacturers backtrack on electrification plans, and incentives could play a crucial role if the Government expects to achieve its net zero ambitions through plans such as the reinstatement of the 2030 ban on new petrol and diesel vehicles. Consumers will increasingly turn to the second-hand market, and dealers will need to use all tools and insights at their disposal to ensure they are keeping up with evolving demand.”
