Motorists driven to high-stakes gamble to save money

• New research reveals that many motorists are skipping essential maintenance checks and opting for third-party insurance - the minimum legal requirement and most basic level of cover 
• The biggest risks are being taken by Gen Z, the generation most likely to be financially squeezed. An overwhelming 74% of Gen Z drivers also admitted to precarious ways to save money like removing warning lights (11%)
• While 47% of Gen Z would only bet up to £10 on poker, 28% of them choose the cheapest level of car insurance, compared to just 2% of Baby Boomers
• Of those Gen Z who were a named driver on another person’s insurance, nearly two thirds (69%) said they didn’t know what type of cover they have
• Tempcover advises that prioritising short-term savings over long-term financial security can be a false economy, leaving drivers vulnerable to severe financial shocks in the event of a crash

New research reveals that some drivers are ‘betting against crashing’ by forgoing full comprehensive insurance coverage and skipping car maintenance checks to cut costs.

The research of over 2,000 motorists, commissioned by temporary car insurance provider Tempcover, reveals that drivers consistently keep cost front of mind when making car-related decisions, likely due to current economic pressures. This includes the point of purchase, where securing a good price (40%) and being cheap to run and repair (31%) rank among the top five most important factors when buying a car. 

For many, this gamble is a calculated risk. A third-party only policy offers no protection for their own vehicle, while skipping routine maintenance dramatically increases the chance of an accident and could invalidate their insurance. This can create a false economy where short-term savings are prioritised over long-term financial security and safety, and could lead to crippling financial shocks if the driver is involved in a crash.  One in four drivers (25%) who added another driver to their insurance policy did so primarily to reduce expenses.

It seems the biggest risks are being taken by Gen Z, the generation most likely to be financially squeezed. An overwhelming three quarters (74%) of Gen Z drivers admitted to precarious ways to save money, including parking in spots that avoid parking fees (28%), and even removing warning lights (11%). This extends to their cars, with more than two-fifths of Gen Z (42%) prioritising a good price than a reliable and safe car (38%) when purchasing one, and a third (28%) opting for the cheapest, third-party insurance cover - a stark contrast to just 8% of Gen X and 2% of Baby Boomers doing the same.  

A striking paradox emerges amongst Gen Z drivers: while almost half (47%) would only bet up to £10 in a game of poker, they are taking a far greater risk by choosing the cheapest level of car insurance available, leaving them with bills that could run into the thousands if they are in an accident.   

This research also highlights a significant knowledge gap among younger drivers. Of those in Gen Z who were a named driver on another’s insurance, nearly two thirds (69%) admitted they don’t know what type of cover they have, with an even higher number (77%) saying they couldn’t say which insurance provider they are with. 

Jake Lambert, temporary car insurance expert at Tempcover warns: “While it’s understandable that drivers are looking to cut costs, it's vital that they have a clear knowledge of what they are and aren't covered for. Avoiding vehicle checks and failing to maintain your car can invalidate your insurance. Third party insurance may appear to be a quick fix for reducing monthly costs, but it's a higher-stakes gamble. If a driver causes an accident, they’ll be left to pay for their own repairs or replacement vehicle entirely out of their own pocket, potentially leaving them with bills running into the thousands or forcing them off the road altogether.”

He also highlights a common risk for named drivers. Jake adds: “Named drivers, who often borrow cars from family and friends, are also at risk of inadvertently impacting the main policyholder's no-claims bonus in the event of a crash, even if they believed they were fully covered. To mitigate risks, a temporary insurance policy protects the owner’s no-claims bonus and provides fully comprehensive cover from as little as one hour up to 28 days.”