Changing to pay-per-mile car insurance could save you money
Up to a third of UK drivers could be wasting hundreds forking out for an expensive car insurance premium they don’t necessarily need.
New research found that one in three are using their car for short trips they admit could’ve been completed by walking or by using public transport.
A poll of 2,000 drivers revealed that 97 per cent of short trips being complete by drivers in cars could have been walked.
Almost half (45 per cent) said they could swap to cycling while 50 per cent claimed that they could get public transport instead.
On average, a trip to the shops is four miles and shopping is the most popular reason drivers are completing short trips in their cars.
However, 15 per cent of drivers are travelling less than a mile to go to the shops.
In addition to this, only one in ten drivers clock up more than 100 miles a week, with longer journeys being almost always for visiting friends and family.
Women are more likely to use the car for a short journey than men – 33 per cent say they would use the car to travel less than a mile, compared to 28 per cent of men.
Andrew Hooks, COO of carwow, says: “We rely on our cars for so many things, no matter the length of the journey.
“Until public transport becomes a constantly reliable option, for many people there is simply no decision to make – the car wins every time.
“That is why drivers need to feel reassured about the future of motoring, with so much confusion over petrol, diesel and electric at the moment.
“Only then will we see longer term decisions being made by motorists in the types of car they are buying, relative to the types of journeys they are undertaking.”
Low mileage drivers could stand to save money annually
With so many drivers barely using their car over the course of a week, they could massively benefit from a pay-per-mile premium.
Pay-per-mile premiums charge drivers an annual fee and then a handful of pence per mile they travel after that.
For low-mileage drivers, this type of policy could see them save hundreds a year.
James Blackham, co-founder, and CEO at By Miles, a pay-per-mile insurer, says: “There are clearly huge numbers of occasional drivers in the UK who could benefit from flexible, pay-as-you-drive insurance.
The premium tracks your mileage and charges you accordingly
“Our pay-by-mile policies are fairer than traditional car insurance products as we actually reward you for being off the road. If you’re not driving, you’re not paying so much.”
“With By Miles, you pay a lower annual cost upfront to cover your car while it’s parked, then we just charge for the miles you’ve driven at the end of each month, like a mobile phone bill.
“If you’re only driving short distances then you could end up only paying a matter of pennies for each journey – and if you don’t drive at all, then there will be nothing to pay at the end of the month.”
“Using our smartphone app, drivers can instantly see the exact cost of each trip and estimate the insurance and fuel costs for future journeys, so they can decide to take the bus or train instead if it works out cheaper.
“Many motorists may think twice about jumping in the car for short trips when they can see how much they’re saving when they walk or cycle instead!”
Alternatively, the type of vehicle motorists use should also be considered.
Swapping to a hybrid or an electric car could save motorists money on car tax and running costs over time.
Many modern electric cars travel over 100 miles on a charge and some of the more expensive models can travel in excess of 300 miles.
However, electric cars do tend to have a higher initial cost than a combustion engine equivalent.