Car owners are cutting back on motor expenditure as the cost of living continues to bite.
Research carried out by Close Brothers found that nearly one in five (18%) motorists have also either cancelled or reduced their breakdown cover to save money.
Despite the prevalence of car financing, only 15% of drivers have Guaranteed Asset Protection (GAP) insurance, leaving them vulnerable to significant debt if their vehicle is declared a total loss.
John Cassidy, Managing Director of Close Brothers Motor Finance, commented: “It’s clear that motorists are really feeling the pressure of rising costs, and are exploring all avenues to cut back on spending wherever they can.
“While avoiding some insurance add-ons may save money, it does also expose many drivers to significant risk – especially with factors such as gap insurance.
“Unfortunately, Government policies such as the September rise in fuel duty, and proposed schemes such as the EV pay-per-mile tax continue to place a financial burden on consumers, forcing them to cut corners and leave themselves potentially vulnerable as a result.
