Motorists in the UK are failing to plan ahead for potentially costly car repairs, a new survey has revealed.
Allianz Global Assistance UK quizzed drivers and found that 23 per cent are relying on using their credit cards to pay for repair work they might have to get done. Just 29 per cent said they would use savings while only 15 per cent said that they had actually budgeted for this kind of event.
Even for the most competent and careful drivers, unexpected car repair costs can still appear out of nowhere. Whether it is a sudden breakdown or a road accident, the price to fix these problems can be steep. That is why insurance is so important, and not just for the motorists, but for the car garages and dealerships themselves.
Motor trade insurance policies - including road risks insurance - provide valuable cover for a business that is selling or repairing cars by protecting assets against damage or theft.
The Allianz Global Assistance survey found that the majority of drivers (77 per cent) had never bought a warranty for a vehicle, with cost cited as their main reason.
Liz Grindell, head of warranty for Allianz Global Assistance in the UK, commented: “It’s clear from our survey that most people fail to plan ahead for car repairs.
“The cost of owning and running a car doesn’t stop after paying for the insurance, MOT, road tax and fuel, but it’s easy to forget the added expenses such as new tyres and ongoing repairs and maintenance."
She added that with cars now staying on the roads for longer, it is important to have manageable financial plans in place to cover any costs that pop up around the corner.