Motor news - Low-mileage car insurance holders not alone in cutting spending

Car insurance news - Low-mileage drivers aren't alone in cutting spending

Holders of low-mileage car insurance already probably limit the distances they drive, but a fall in profits at retailer Halfords indicates that other drivers may also have cut down on the amount of motoring they undertake, as spending on DIY car maintenance is down.

A report has revealed that revenue for the car parts retailer has dropped by 0.5% in the six-month period ending on 30th September 2011, with the company experiencing a fall in shares of about 20% in the past year amid concerns that consumers are choosing to spend less on motoring costs.

Halfords has suggested that high insurance and fuel costs are likely to have reduced the amount that motorists are willing to spend on their cars, however, the company has maintained success in bicycle sales which continued to increase,

Despite the reported fall in profits, early trading on 10 November showed that shares were up by 2% and David Wild, chief executive of Halfords, stated that the company was on track.

Mr Wild said, "Motorists continue to be affected by inflationary rises is fuel and insurance costs, so their spending on maintenance has been subdued."

By searching for the cheapest car insurance, and perhaps taking out a telematics-based insurance product drivers can save money on their cover cost.

All car insurance holders, such as those with car insurance for women or low-mileage car insurance, should always ensure that their vehicles are in good working order before they take to the roads and should not attempt to save money by not replacing faulty or damaged car parts.