New research by Volkswagen Financial Services UK (VWFS) has found that only one in ten families have given up their second car since March 2020, despite additional finance pressures during lockdown and a sharp decline in miles travelled. The study from Volkswagen Financial Services UK shows that Brits are too attached to part with their extra cars, despite a huge reduction in commute pressures and daily miles travelled across the UK. Data shows that despite many families no longer requiring an additional vehicle, only 9 per cent of people gave up their second car.
Almost one in seven (14 per cent) UK drivers have considered getting rid of their car because of the pandemic (17 per cent men and 11 per cent women), rising to one in three (35 per cent) of under 34s. According to a new survey of 2,000 UK drivers by InsuretheGap, a provider of Guaranteed Asset Protection (GAP) insurance, over half (56 per cent) say they do not need a car as much as they did before the pandemic (53 per cent men and 59 per cent women).
Data and analytics company GlobalData is forecasting that Covid-19 lockdowns and an increase in working from home worldwide has limited the need to own private vehicles, which will cause more consumers to consider new models of vehicle ownership. This has implications for the insurance industry. As more people turn to car-sharing schemes for their transportation needs, this will reduce the number of private motor insurance policies in force. In their place, insurers will need to provide short-term policies for drivers using these services.
Research carried out for Kwik Fit suggests that Birmingham is the UK’s most expensive city for car ownership. According to the results, Brummies pay almost twice as much for the privilege as residents of Exeter do.