Admiral Reveals the Impact of Rising Fuel Costs on Motorists

By Admiral, PRNE
Thursday, June 2, 2011

CARDIFF, Wales, June 3, 2011 -

Admiral has found motorists using their cars less and ignoring problems
with their cars due to motoring costs.

Half of UK motorists say they have reduced the amount of driving they do
due to the rising cost of fuel, while more than nine out of ten feel ripped
off by the current price of petrol and diesel. These are some of the findings
of new research by car insurance ( expert Admiral
that illustrate how motoring costs are affecting many drivers.

Admiral commissioned YouGov to survey 2,500 drivers as part of the annual
Admiral Survey of Motorists. The results reveal the impact fuel prices are
having on motorists, with 92% agreeing they feel ripped off by the current
cost of fuel.

Sue Longthorn, Admiral managing director said: "With the average cost of
a litre of unleaded at GBP1.36 and diesel at GBP1.41, our research shows the
depth of feeling British motorists have about the high cost of fuel right
now. And it seems high fuel costs are actually affecting how much they drive,
with 51% saying they've reduced the amount of driving they do."

Admiral also asked motorists what percentage of the cost of fuel they
believe is made up of duty and tax and what percentage of it they think would
be a fair amount. On average, they believe 64% of the cost is made up of fuel
duty and VAT, however they think a fairer amount would be less than half that
at 31%. Actually fuel duty and VAT account for around 60% of the total price
of petrol and diesel.

But it isn't just the cost of fuel that's affecting driving habits; other
expenses are having an impact too. 18% said they have ignored a fault or
problem with their car because of the cost of repairs. While 15% said they
have cut back or stopped servicing their car due to costs, and even more
worrying, 8% said they have ignored problems with their tyres due to the cost
of replacing them.

Sue Longthorn continued: "It's a concern that some motorists are willing
to drive around with tyres not in the very best of condition. This could
cause more serious problems long term and could even cause them to have an

Despite half of motorists admitting they have reduced the amount of
driving they do because of the cost of fuel, they do not expect the rising
cost of motoring will result in less traffic. Only 37% said they agreed it
would result in fewer vehicles on our roads, compared with 41% who didn't
agree with this.

Notes to Editors:

The full 2011 Admiral Survey of Motorists will be released at the
beginning of July. All figures, unless otherwise stated, are from YouGov Plc.
Total sample size was 2,500 adults who have a drivers licence and at least
one car in their household. Fieldwork was undertaken between 6th and 9th May
. The survey was carried out online.

About Admiral:

Admiral, (a trading name of EUI Ltd) launched in 1993, and is part of
Admiral Group plc. It was set up to target those motorists who traditionally
pay higher than average premiums, including those under-35, living in cities
or driving hot hatches.

The Admiral Group employs over 4,000 people, has 2.75 million customers.

Admiral writes its motor insurance business to a consortium of insurers,
these being: Admiral Insurance Company Ltd, Admiral Insurance (Gibraltar)
Limited and Great Lakes Reinsurance (UK) plc.

    PR Contact:

    Justin Beddows
    Capital Tower
    Greyfriars Road
    CF10 3AZ


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