UK motorists set for spending squeeze in 2011

After some of the deepest spending cuts seen since World War 2,
the average motorist looks set to be squeezed off the roads.

It is the middle class that are being squeezed the hardest and they are far from well off. With usually only one parent working while the other looks after the kids at home, two cars is usually a necessity. Their child benefit payments are being stopped and massive cuts in the public sector looks set to see over 500,000 people made redundant.

2011 looks set to be a tough year. Everyone will now be tightening their purse strings and looking to make savings where possible. However, when it comes to driving, for many, it is a necessary expense. In 2011, the motorist will see a rise in fuel duty and VAT, adding to the cost of already inflated petrol prices. Motor Insurance is currently at its highest levels since records began and doesn’t look like getting any cheaper.

Motor Insurance

Motor insurance is different for every driver. The price of a premium depends on two things, first the underwriters assessment of your particular risk and then the pricing model which dictates what type of customers the insurer wants to attract.

There are hundreds of insurance companies to choose from, however trying to get a quote on each one, could take up a lot of your time. Comparison sites will compare all of these insurers for you in minutes. They use the information you enter to scrape quotes from most, if not all of the insurers. If you combine the top three comparison sites, GoCompare.com, Confused.com and moneysupermarket.com, you will pretty much cover 95% of the market.

To make sure you get the best deal on your motor insurance, follow some of these helpful hints.

• Park and drive carefully - Store your car in a garage and drive sensibly. Points on your license can add hundreds of pounds to your insurance policy.
  
• Add a parent to an under-25s policy - For younger drivers, add a parent to the policy. This can sometimes reduce the premium.
  
• Fit a security device - Fit an alarm or immobilizer to you car, not only will it keep your car safe, but also reduce the cost of your motor insurance.
  
• Don’t modify your car - A modification is anything that is not part of the standard vehicle specification. The more you modify, the more you spend on insurance.
  
• Reduce your mileage - Simply put, the less you drive, the cheaper your insurance will be.
  

Fuel Costs

Fuel is becoming a much sought after commodity. Companies are now using fuel for promotional exploits and competition giveaways. From 2011 the cost will rise even further due to the VAT and fuel duty increase. Here are some tips to improve the efficiency of your car and overall fuel expenditure.

• Keep your tyres inflated. Lower tyre pressure increases the drag on a car meaning you need more fuel
  
• De-clutter your car. The lighter your car is, the less effort it needs to make to accelerate.
  
• Take your roof rack off. A roof rack, even unused, adds massive wind resistance to a car, increasing drag and making the engine work harder.
  
• Turn off the air con. Air conditioning also uses an incredible amount of fuel, so make sure it's turned off unless you really need it.
  

A Green Car

By trading in your current car in for a more economical car and you could save thousands.

All the top Hollywood celebrities are now driving around in their eco-cars. Stars such as Cameron Diaz and Leonardo Di Caprio, all own an electric car. Fuel costs are very cheap as the car is charged up at your home. With government grants available, to help people buy their first green car, the initial outlay for an Eco-car, will be far out-weighed by the amount you will save over the coming years.