The one-car revolution

Four in ten car owners have reduced the number of vehicles they own within the last two years - citing affordability, a change in lifestyle, sustainability and hybrid working.

A poll of 2,000 adults found those who went from two or more cars to one have saved up to £1,533.24 annually by freeing up their driveway – with 57 per cent agreeing they are now better off for it.

Of those savings, 41 per cent have put the money into savings or investments, while 34 per cent have directed it towards everyday essentials, such as groceries and energy bills.

With one car between them, households are finding a system that works - the most common method for deciding who gets the car is simply whoever needs it most that day (39 per cent). 

A quarter (25 per cent) settle it through mutual discussion, 18 per cent prioritise work or school commitments and just four per cent operate a formal daily rota - while seven per cent live by a ‘first come, first served’ ruling.

Though 23 per cent admit plans or social events have occasionally been missed or cancelled due to sharing one car, the majority say the trade-off is worth it.

The findings sit alongside Government data from the National Travel Survey 2024[1], which shows single-car households outnumber multi-car households by 10 percentage points - 44 per cent of UK households have just one vehicle, compared to 34 per cent with two or more.  

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.”

The study also found 22 per cent of those who are a single car household experience disagreements over having to share their transport.  When it comes to sharing a car with family or friends to ease the pressure, around one in four (28 per cent) said concerns about other people’s driving would put them off.   

A further 24 per cent wouldn’t entertain it due to the hassle or cost of altering the annual insurance policy.

It also emerged 56 per cent of those with one car or more are hanging on to their vehicle for longer than planned because the cost of replacing it is too high.  

Exactly six in 10 (60 per cent) cite the current cost of cars, and 50 per cent point to the cost-of-living crisis as the reasons holding them back - with data showing the average household vehicle is now seven years old.

Meanwhile, 39 per cent say their driving habits have permanently changed since the pandemic and they now drive far less than they used to - a shift that has persisted well beyond lockdown.   

The data also revealed the average car owner spends £174.95 per month on running and standing costs.

The rise of ‘usership’ services

Thinking about the future, 23 per cent are likely to consider getting rid of car ownership entirely - relying on ‘usership’ services instead, such as car sharing apps or temporary insurance for car sharing or borrowing.

More than a quarter (26 per cent) are thinking about doing this within the next few years, but 15 per cent are already weighing it up and could potentially make the switch over the next six months.

It's a shift reflected in demand for flexible insurance - Tempcover's customer base has more than doubled since 2022 to 4 million customers.

Paul Gilshan from Tempcover 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. 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. Temporary insurance makes that straightforward: fully comprehensive cover in minutes, separate from any annual policy and the car owner's no claims bonus stays intact.”

Sources

Based on research conducted by OnePoll, commissioned for Tempcover in June 2026, among 2,000 UK adults.

[1] National Travel Survey 2024