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Cars are becoming too expensive to run

April 17th, 2008

I read an article on The London Stock Exchange website which identifies the rising cost of car insurance as a contributing factor to people not being able to afford to run a car any longer.

A poll carried out by MoneyExpert.com says that 25% of motorists who completed the poll are using their cars less as a result of increased costs. 8% of these people said increased car insurance premiums was the main reason. However, a substantial 76% said that it was the rising petrol prices that effected how much they use their car.

These people won’t be happy to hear that petrol prices could hit £1.50 per litre by late summer according to a report in The Guardian. The increase is due to the price of a barrel of crude oil hitting almost $114 and the sharp fall in the value of the dollar.

Gordon Brown in visiting the United States at the moment to discuss the Credit Crunch and has called on Opec to increase production in a bid to drive costs down. It looks like it is a simple supply and demand situation. However Opec appears to be standing firm.

So with all these costs rising it looks like we all need to tighten our belts a little. Spring is officially here so now would be a good time to Spring Cleaning your finances. Make sure you are getting the best deals for your loans, car insurance, mortgages and shop around for the cheapest petrol prices.

Entry Filed under: politics, advice, insurance, cars