Around 25 per cent of motor insurance customers believe the rising costs of owning a car outweigh the benefits, according to new research carried out by You Gov on behalf of Europcar UK.

Fleet director of the vehicle rental organisation Europcar UK Tim Bailey said: "Households with more than one car are particularly hard hit by rising costs but the reality is that public transport is not providing the solution."

Mr Bailey added that drivers who, feeling the credit pinch, cut back on maintaining safe and reliable cars could ultimately end up paying high car insurance premiums.

Only eight per cent have a realistic understanding of the overall cost of owning a car and a third of drivers claimed they feel trapped into having to pay car insurance, maintenance and servicing because of where they live or work.

Despite UK legal requirements that all drivers have motor insurance, an American Express survey has revealed that two per cent of Britons said they would cancel their payments in a bid to save money during the credit crunch.

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