Irish motorists managing the cost-of-living crisis

As the cost-of-living crisis continues to affect many Irish people, new research has found common changes motorists have been making to try and reduce the costs of running a car – with some delaying servicing or reducing vital maintenance spend.

The results of a study published today by Liberty Insurance has found that over the past six months, motorists have made or considered a wide range of measures including cutting back on car use, switching to public transport, changing their motor insurance cover and even delaying necessary servicing of their vehicle.

Delaying maintenance
Even when their cars need repairs and maintenance, a considerable number of Irish motorists have been looking to cut costs this year by reducing what they spend, or even postponing entirely servicing their car. More than one in seven motorists (15%) said they had put off servicing their car in the last six months, even when it was needed. A further 12 per cent said they were spending less on maintenance than previously.

Reduced usage
According to the survey, 43 per cent of respondents said they had reduced how much they use their car over the past six months. Three in 10 motorists (30%) said they had started walking or cycling more, while 25 per cent have increased their use of public transport.

In Dublin, where travel distances are typically shorter and there are often more public transport options, these numbers increase to 40 per cent and 41 per cent, respectively.

Shopping around
Over a third (37%) of insurance owners said they had shopped around more for motor insurance cover in an effort to cut costs. One in every eight motorist (12%) has switched provider, while just four per cent of motorists have actively reduced the level of their motor insurance cover.

Selling
While selling their car is the ultimate step in reducing the cost of motoring, less than one in 10 (9%) of Irish customers have considered this, and either sold, or thought about selling their car in the last six months.

José Luis García Camiñas, product leader for Liberty Seguros in Europe said: “The findings of this research are of significance for us all and show how Irish motorists have been responding to the continuing challenges presented by the rise in the cost-of-living.

“When it comes to safety, we would never advise motorists to cut back on essential maintenance and servicing. Ensuring your car is roadworthy, and safe for you and other motorists is of the utmost importance. Keeping your car in good condition also helps to prevent larger costs down the road.

“Irish motorists have become increasingly savvy when it comes to motor insurance. If your circumstances have changed, it may be appropriate for you to adjust your cover accordingly, and you should speak to your insurer about your options.”

The research was commissioned by Liberty Insurance and carried out by RED C as part of an online survey of 510 people during March and April 2023 (prior to the increase in fuel excise duties on 1st June 2023) amongst a nationally representative sample of home insurance owners aged 17-75. Quotas were set on gender, age, social class and region.