According the news car insurance premiums soared by record amounts in the second quarter of 2010. Analysts at the AA have reported third party insurance premiums rose by 15.9% and fully comprehensive cover rose by 11.5%. That means the average person in the UK will spend about £700 each year for comprehensive insurance policies. With this increase in mind within the current financial climate, isn’t it time we trade in our cars?

If we trade in our cars we will have to cope with public transport. If you work in the city then this shouldn’t be a problem as most cities have at least one method of transport able to get you to and from the city. Not only will you save money on insurance costs you will also save money on everyday running costs.  There will be no congestion charges, no fuel to pay for, no parking fees and dilemmas of where to park. Simply hop on a bus, a train or a tram and relax until you reach your destination. Simple!

But what about going on Holiday, I will need a car?

Granted, having a car whilst travelling is a huge benefit as it provides you freedom to explore at a convenient time and pace that suits you. But if this is the only time you will require a car then why not hire one. With car hire you will be able to drive where you want and when you want without the yearly expenses of owning a car. Moreover you won’t have to worry about repair costs and maintenance of your vehicle the car hire company should look after theirs.

With the current spikes in insurance costs and the financial crises still looming overhead, it seems logical to trade in your car for alternative transport methods to help you save money. Owning a car is only going to get more expensive and if you work in the city, selling your car is an ideal way to save money.