Tuesday, February 10, 2015
BUYERS WORRIED MORE BY INSURANCE THAN FUEL
How highly do fuel costs rate on buyers’ list of concerns when shopping for a change of car?
Findings from a consumer survey just published by Auto Trader suggest that they have slipped down the list of concerns as forecourt pump prices have fallen – from 130p per litre of unleaded petrol a year ago to the latest average of 109p. Auto Trader says that the results of its survey of 1000 car buyers, carried out during December, indicate that worries over affordable insurance are now the foremost concern.
Overall, some 560 of those taking part put insurance as among their top three issues when buying, while 510 rated fuel economy as a major concern.
This is very different from a year back, when near-peak pump prices and little prospect of a down-turn saw some 700 respondents to a previous Auto Trader survey said the cost of refilling the tank worried them most.
However, while car premiums have begun to rise, figures from the AA show that the cost of cover was 10% lower at the end of 2014 than it was a year earlier. Typically, a driver paid £540 for fully comprehensive motor insurance, while they would have paid £540 for similar cover at the end of 2013.
“It’s not surprising that fuel price concerns have subsided in the last year,” said Nick King Market Research Director at Auto Trader. “However, the fact that more than half still register it as one of their three big concerns on motoring costs, suggests that many view the decline as a short term trend. For many others, fuel costs still represent a significant proportion of their overall motoring budget and disposable incomes.”
Although wholesale prices for crude oil have risen slightly from last month’s low – they are now just over $51 a barrel, as against $45, some market commentators – including BP – believes they are unlikely to rise significantly soon and may stay close to current levels for another two years.
Similarly, the Government’s and the insurance industry’s continuing campaign against false whiplash claims and so-called ‘crash-for-cash’ cheats will, it is anticipated, mitigate future insurance premium costs.
DATED: 10.02.15
FEED: ARN
