Half of motorists cutting back to pay spiralling car costs

24th August, 2011, SYDNEY: More than half of Australian’s are already cutting back on their spending to continue running their cars, with almost 90% reporting an increase in motoring expenses against last year, according to new research from online comprehensive car insurance provider, Bingle¹ .

With a possible congestion tax looming and the impact of the new carbon tax on family budgets yet to be felt, almost 60% of Australian drivers are certain the cost of running a car is already rising faster than other living expenses, such as gas and electricity.

Bingle Car Insurance spokesperson Melanie Vine said:

“Given our research found the average cost of running a car is $5,556 per year², it’s easy to see why people are already cutting back so they can stay on the road.

“The average Australian income is $67,000 per year before tax³ and $5,556 represents a fair chunk of that, so it’s not surprising that our research also found 75% of Aussies think it’s just too expensive.”

Despite the spiraling costs, Bingle’s research found that 92% of Australians believe that having a car is a necessity, and almost 70% declare they would never give up their car, no matter how much it costs to run.

“Servicing, tolls, the rising cost of petrol, rego, and insurance all add up pretty quickly over the year."

“Insurance can be up to about 10% of those running expenses, and one way to reduce the cost is through a simple, low cost, comprehensive car insurance provider like Bingle.” Ms Vine said.

Research Summary:

• 92% agree that having a car is a necessity
• 55% have cut back on other spending to afford to run a car
• 75 % say the costs of running a car are too expensive
• 58% believe the cost of running a car rises faster than other living expenses, such as gas and electricity
• 88% feel it is more expensive to run a car this year than it was last year
• 68% would never give up their car, no matter how much it costs to run it
• 22% said they would sell their car if costs continued to grow

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1. Bingle’s research was conducted in 2011 by Newspoll and is based on an independent internet survey of 602 Australians across all states and territories.
2. This annual figure includes fuel, service, repairs, registration, insurance, and other costs, such as cleaning, detailing, tyres, parking and tolls and is based on the Newspoll research .
3. ABS, Average Weekly Earnings, Australia, Feb 2011

For further information or to organise an interview, please contact:

Melanie Vine
Bingle Car Insurance
(0459) 800 621