Car Insurance - Smaller cars favoured by more - 05/03/2008

Small cars have become the vehicles of choice for British drivers thanks to rising fuel costs, this is according to AA Personal Loans. Smaller cars are cheaper to run with cheaper fuel, tax and insurance than larger cars.

43% of British motorists choose smaller vehicles, which is double the number of people who chose smaller vehicles 18 months previously. The survey was of 2,000 motorists and was conducted when fuel prices reached the £1 per litre mark, smaller vehicles not only save motorists money on petrol by they also result in cheap car insurance.

4x4 which are both expensive to run and notoriously bad for the environment are chosen by only 4% and 28% are currently searching for a car which is cheaper to run. Mark Huggins, managing director of AA Personal Loans said: "The environmental impact, running costs and practicality appear to be growing concerns [for motorists] … Britons are putting practicality and cost first."

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