Low mileage driver news - Telematics box insurance and mechanic costs

Car owner news - Telematics box insurance holders and vehicle repair costs

Drivers who choose telematics box insurance are probably already very aware of ways to save money on their motoring costs, but they may be unaware of the disparities in the cost of using a mechanic to fix or repair a vehicle.

A recent survey of garage labour rates conducted by Warranty Direct, a leading car warranty provider, has shown that for many motorists across the UK the cost of getting their car repaired is increasing alarmingly.

Reportedly, the current inflation rate in Britain is set at 4.5%, but garage labour rates have increased by 7.5%. This means that on average a mechanic's time is priced at £80.44 an hour this year, compared to £74.82 in 2010.

Furthermore, the gap between the prices charged by franchised dealer workshops and those charged by independent workshops is the largest noted for many years. On average independent garages are 57% cheaper than franchised firms.

High and low mileage drivers who want to save some money on the cost of repairing their vehicle might therefore choose an independent garage, however, care should be taken as the prices vary immensely from one firm to another. Apparently, while many car owners only pay £35 an hour for the services of a mechanic, others pay £202.21 (the highest labour rate ever recorded by Warranty Direct).

A spokesperson for the warranty provider stated, "To think that some workshops are charging in excess of £200 an hour is astounding – that's equivalent to some people's weekly wage. Motoring costs are approaching an unsustainable level."

Telematics box insurance holders may not be as affected by this news as other motorists, since some cover providers, such as insurethebox, reward safe driving. Positive driving habits not only reduces the risk of an accident occurring, and subsequent need for vehicle repair, but means that a road user can save money on their annual insurance premium. For this reason they may not be as in much financial trouble as other motorists when the need for a mechanic arises..

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Insure The Box Limited and ITB Services Limited are wholly owned subsidiaries of Box Innovation Group Limited which is incorporated in Gibraltar (Company Number: 106243) registered office: Montagu Pavilion, 8-10 Queensway, Gibraltar. Insure The Box Limited is incorporated in Gibraltar (Company Number: 102568) registered office: Montagu Pavilion, 8-10 Queensway, Gibraltar. ITB Services Limited is incorporated in the United Kingdom (Company Number: 6770929) registered office: 30 City Road, London EC1Y 2AB