Press release

Driving demands prompt second-car surge

  • Two-car households up more than half a million year on year
  •  Despite this, some households are missing out on savings of around £400 by not taking advantage of multi-car insurance offers
  • LV= has become the latest insurer to provide a multi car product for drivers

 New research released today from LV=, the UK’s third largest car insurer, reveals that an increased demand for driving in modern life is behind a surge in two-car families. With official figures [1] showing a growth of 541,600 two-car households year-on-year, nearly a quarter (24%) [2] of drivers revealed to LV= that they are doing more driving than they were 12 months ago. What’s more, two-car families now outweigh two-child families by nearly two million [3].

Work requirements are the main reason, with two in five (40%) clocking up the miles thanks to a longer commute and nearly a third (30%) spending more time on the road for work purposes. It’s also the top reason for people to purchase a second car (37%).

The research also reveals that second cars have become an increasingly important part of modern family life. Family journeys are the second most popular reason for purchasing a second car (30%), and nearly a quarter (24%) of people say taking children to and from new hobbies has driven up this year’s mileage. Around one in seven (15%) also regularly use it for the school run.

To cater to these trends, LV= has become the latest insurer to provide a multi car product for drivers. Despite the UK now having more than seven million two-car households, fewer than one in five (18%) of those surveyed said they had taken advantage of the potential savings multi-car insurance offers, even though more than 80% said they’d consider it. This could mean households are missing out on potential savings of around £400 with LV= data showing that 10% of families taking out a multi car policy saw a saving of more than 40% on their insurance for at least one of their vehicles compared to if they had bought two single policies [4].

Despite the rising reliance on second cars, LV=’s research also suggests they are under-appreciated and the unsung hero of modern lifestyles. On average, they run around 844 miles per month with more than half (51%) helping out with the weekly shop and more than a quarter (26%) doing the daily commute. In fact, the second-car economy is now worth £25.7 billion through buying, maintaining and insuring these vehicles [5] . However, despite the significant role they play within family life, second cars are sadly less likely to be treated to the glamorous trips their main car counterparts get to enjoy. People are much more likely to take their main car on long trips away (58% versus 24%) and it’s even less likely to see the coast with fewer than one in ten (9%) taking it to the beach (versus 20% of main cars) [6].

Urging people to celebrate the unsung heroes of modern households, LV= Managing Director of Car Insurance, Selwyn Fernandes, said: “From ferrying the kids to and from out-of-school activities, through to the daily commute, the second car has become a vital part of everyday life for many working families and deserves just as much appreciation as ‘main’ cars. At LV=, we’re committed to supporting our customers in any way we can, so we felt it made complete sense to add multi-car insurance to the products we provide. It can deliver significant savings and offers the ease of holding all policies in one place, giving reassurance and confidence to households facing the pressures of modern life.”

To stand up for these under-appreciated second cars and encourage others to do the same, LV= is offering one family the chance to win their second car a special holiday. Entrants just need to visit facebook.com/LV and complete the sentence ‘I love my second car because…’ to be in a chance of winning [7].

To find out more about LV= multi car insurance, visit https://www.lv.com/car-insurance/multi-car-insurance.

Notes to editors:

Case studies available on request

Sources:

[1] ONS statistics. Calculations: Number of UK households with two cars in 2017 (7,618,800) – number of UK households with two cars in 2016 (7,077,200) = 541,600

[2] LV= commissioned Censuswide to speak to 1,028 members of the public who have a driving license and 2+ cars between 27th December 2017 and 2nd January 2018.

[3] ONS statistics. Calculations: Number of UK households with two cars in 2017 (7,618,800) – number of UK households with two cars in 2016 (7,077,200) = 541,600. “Two-car family” based on the ONS definition of 68% of households being families: 68% of two-car households (7,618,800) = 5.1 million two-car families. This is versus 3.2 million two-child families.

[4] Based on 6982 vehicles on multi car policies compared with single car policy prices at time of purchase 20/10/17 – 23/01/18

[5] ONS statistics. Calculations: Number of UK households with two cars in 2017 (7,618,800) – number of UK households with two cars in 2016 (7,077,200) = 541,600

[6] LV= commissioned Censuswide to speak to 1,003 members of the public who have a driving license and 2+ cars between 19th and 23rd January 2018.

[7] Terms and conditions for competition.

About LV=

LV= employs over 6,000 people and serves over 5.8 million customers with a range of financial products. We are the UK’s largest friendly society and a leading financial mutual.

When we started in 1843 our goal was to give financial security to more than just a privileged few and for many decades we were most commonly associated with providing a method of saving to people of modest means. Today we follow a similar purpose, helping people to protect and provide for the things they love, although on a much larger scale and through a wide range of financial services including insurance, investment and retirement products. We are currently the UK’s joint number one brand for Insurance and Investments, according to the 2016 YouGov Brand Index Buzz Rankings.

We offer our services direct to consumers, as well as through IFAs and brokers, and through strategic partnerships with organisations including ASDA and Nationwide Building Society.

Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. LVFS is a member of the ABI and ILAG. Registered address: County Gates, Bournemouth BH1

Press contact

Kaidee Horton (née Sibborn)
Head of Media (Corporate, General Insurance & Brand)
020 7634 4240
07738 274 568