ULEZ expansion driving London motorists towards flexible vehicle access models

4 min read
  • A third (31 per cent) of non ULEZ-compliant vehicle drivers are looking to replace their vehicle through alternative ownership options, including traditional and short-term rentals, carsharing, salary sacrifice, and subscriptions
  • Less than one-in-ten (seven per cent) UK motorists polled in April 2022 had acquired their vehicles through non-traditional means
  • Over half (56 per cent) of London motorists see ULEZ expansion as an opportunity to convert to electric

New research1 from Churchill Expert, Direct Line Group’s flexible fleet insurance provider, reveals a quarter (25 per cent) of London based drivers whose current vehicle doesn’t comply with the emissions standards for the expanded Ultra Low Emission Zone (ULEZ) are planning to switch to a compliant model.  Of these drivers, 31 per cent are considering acquiring a replacement vehicle through alternative, flexible ownership methods as opposed to through traditional purchase models.

The flexible methods being explored include traditional rentals (nine per cent), carshare or short-term rentals (eight per cent), employee salary sacrifice schemes (eight per cent), or subscriptions (six per cent). This compares to only seven per cent of UK motorists in April 2022 who had acquired their vehicles through the same flexible methods.2  Only 45 per cent of London drivers non ULEZ-compliant vehicles are considering acquiring ULEZ-compliant cars through traditional means, such as outright ownership and Personal Contract Purchase (PCP).

Those looking to make a vehicle switch could face challenges due to availability. Recent research from Churchill Expert shows average waiting times for vehicle fleet drivers, in particular, to lease a new vehicle are over 19 weeks.3 Adding to difficulties, car purchasing company Auto Trader has reported a ‘shortage’ of affordable, ULEZ-compliant used cars – there are just over 5,000 used cars on the market in London that meet the requirements and cost less than £5,000.4

The majority of drivers (56 per cent) in London said they see the expansion as an opportunity to go electric sooner than planned. The flexibility in types of access models is likely to make it easier, and less of a commitment, for drivers to switch to an electric vehicle.

Nicola Richmond, Head of Churchill Expert Flexible Fleet Partnerships, said: “Our research shows that drivers in London are adapting to the expansion of ULEZ in different ways. It is interesting to see many drivers considering flexible methods of acquiring new vehicles, with the majority seeing the expansion as an opportunity to electrify sooner than planned. Churchill Expert is ready to support car subscription and flexible vehicle fleets as they make the transition to electric, as well as those more broadly and are looking for an insurance partner.”

-ENDS-

(1) Opinium survey of 496 London-based motorists, conducted 21st February – 24th February 2023

(2) UK car ownership options welcomed as life priorities change – Churchill Expert, April 2022

(3) EV waiting game for fleet drivers – Churchill Expert, January 2023

(4) ‘Shortage’ of affordable Ulez-compliant used cars as expansion draws near

Direct Line Group

Unni Henry

PR Manager

Email: unni.henry@directlinegroup.co.uk

About Churchill Expert

Churchill Expert specialises in providing easy access to flexible mobility insurance, as well as business and landlord insurance through partnerships. Part of the well know and much-loved Churchill brand, Churchill Expert is a trading name of insurance intermediary U K Insurance Business Solutions Limited (UKIBS) which has been operating since 2004 and provides NIG policies underwritten by U K Insurance Limited (UKI). Along with the insurer U K Insurance Limited (UKI), U K Insurance Business Solutions Limited is part of the Direct Line Group.

U K Insurance Business Solutions Limited is authorised and regulated by the Financial Conduct Authority, FCA registration number 313783. Registered office: Churchill Court, Westmoreland Road, Bromley, Kent, BR1 1DP. Registered in England and Wales No 05196274.

U K Insurance Limited trading as NIG is an insurance company which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.