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London drivers hit with congestion charges can leave their cars at home and save money

London's massive congestion charge scheme comes into force on Monday and the additional costs are forcing many drivers in Greater London to sell their cars altogether. But is such drastic action necessary? According to direct car insurer Admiral, car owners in Greater London could save up to £3000 a year if they change the way they use their cars and leave them at home.

Admiral has heard from a number of drivers in London who have decided that the congestion charge is one cost too many and are cancelling their insurance and selling their cars. But Admiral suggests that for some drivers this isn't necessary and by changing the way they use their cars and reducing their mileage some drivers can cut their insurance premiums by up 20%.

Admiral managing director, Jane Stone, said, "Quite a few of our customers who previously drove into central London daily have told us they are selling their cars as they won't be able to afford to use them once the congestion charging begins. We suggest they look at ways of reducing their driving costs, beginning with their insurance, and they might be able to afford to hang on to their cars."

Admiral has produced three case studies for drivers from around Greater London and looked at how much their premiums are reduced by if they change the class of use from Social and Commuting to Social Use Only. They also calculated the distance each driver would travel daily to work and reduced their annual mileage accordingly. This also lowered their annual premiums.

Case One - A 40-year-old male Marketing Manager living in Rickmansworth (WD3) driving a 2000 Toyota Avensis CDX. He has 3 years No Claims Bonus and his mileage is reduced from 15,000 to 7,500 miles per year.

Case Two - A 25-year-old male Solicitor living in Woodford Green (IG9) driving a Volkswagen Golf Gti. He has 5 years No Claims Bonus and his mileage is reduced from 12,000 to 8,000 miles per year.

Case Three - A 19-year-old female Bank Clerk living in Kennington (SE11) driving a Vauxhall Corsa Club. She has 2 years No Claims Bonus and her mileage is reduced from 12,000 to 10,000 miles per year.

Admiral also points out that drivers who decide to no longer commute daily into Central London will save money in other ways too. They will not have to pay parking fees, they will use less petrol and of course they will escape the dreaded congestion charges. Another less immediately obvious saving will result from their cars being used less often; repair bills should be less frequent and a car with lower mileage should depreciate more slowly in value. Admiral calculates the total savings could be as high as £3000 a year.

Jane Stone, said, "When you sit down and think about all the expenses of commuting daily it soon becomes clear that you can save quite a bit of money by leaving your car at home. I know the congestion charges are not going to be popular with some drivers, and people who have decided to commute by rail or bus have to consider the cost of trains and buses. But at least our research shows that it might not be necessary to give up your car completely."

Issue date: 19-02-03