Four in 10 car owners have reduced the number of vehicles they own within the last two years, citing affordability pressures, lifestyle changes, sustainability concerns, and hybrid working. A survey of 2,000 adults found those who cut back from two or more cars to one have saved as much as £1,533.24 a year, with 57% saying they are now in a stronger financial position.
Financial Benefits of Downsizing
Among those who feel better off, 41% have put the money into savings or investments, while 34% have used it for everyday essentials including food shopping and utility bills. With one vehicle between them, families are finding ways to make it work. The most common way of deciding who gets the car is simply whoever needs it most that day (39%). A quarter (25%) sort it out through a discussion, 18% prioritise work or school commitments, and just 4% follow a formal daily schedule – while 7% stick to a 'first come, first served' approach.
Challenges and Compromises
Although 23% admitted plans or social events have sometimes been missed or cancelled because of sharing one car, most said the compromise is worth it. The findings echo government figures from the National Travel Survey 2024, which show single-car households outnumber multi-car households by 10 percentage points – with 44% of UK households having one vehicle, compared with 34% owning two or more.
Expert Insights
Paul Gilshan, CEO of temporary car insurance provider Tempcover, which commissioned the research, said: 'Our research shows that for households that have downsized, one car works well. People are better off financially, it fits how they're working and living now, and they're more intentional about when they use it - and it's better for the environment.'
'In many ways, these households are already practising a form of car sharing - coordinating access, prioritising who needs it most, making it work around everyone's schedule. The car is more of a shared resource rather than a personal fixture, and that mindset is only going to grow.'
Sharing and Insurance Concerns
The research also found 22% of single-car households have rows about having to share their vehicle. When asked about sharing a car with family or friends to ease the burden, 28% said concerns about other people’s driving would put them off. A further 24% said they wouldn’t consider it because of the hassle or cost of updating an annual insurance policy. The OnePoll.com data also found the average car owner spends £174.95 a month on running and standing costs.
Future Trends: From Ownership to Usership
Looking ahead, 23% said they would consider giving up car ownership altogether – opting instead for 'usership' services such as car-sharing apps or short-term insurance for borrowing or sharing vehicles. More than a quarter (26%) said they may do this within the next few years, while 15% are already considering it and could make the switch within the next six months.
Paul Gilshan at Tempcover, which has seen its customer base more than double since 2022 to four million customers, added: 'The friction around insurance is one of the main issues stopping people from sharing more flexibly. The risk to a no claims bonus or the cost of changing an annual policy, but when that barrier comes down, the case for usership becomes compelling.'
'For some, that could mean moving away from traditional ownership altogether but for others, it's simply about having greater flexibility in the moments they need it, whether that's borrowing a family member's car or lending their own.'
