March 21, 2011 20:00 ET

Fuel Set to Overtake Depreciation and Become Highest Cost of Running A Van, Warns Swinton Commercial

MANCHESTER, UNITED KINGDOM--(Marketwire - March 21, 2011) - Swinton Commercial can reveal that fuel costs are rising so high, due to the increase in fuel duty and the political unrest in major oil exporting regions that petrol prices are soon to overtake depreciation as the highest cost of running a van.

Depreciation has always been a van drivers biggest cost, with on average, each van loosing 25 pence per mile, however with current petrol prices, and petrol currently sitting at 16 pence per mile, petrol prices are soon to take over from depreciation.

Van insurance specialists, Swinton Commercial have undertaken an online survey of 1200 van drivers, and discovered that 32% now factor fuel costs into long term cost strategies as they consider it to be as big a problem as depreciation, which has factored in costings since balance sheets began.

The shift from depreciation to fuel could represent a complete change in fleet economics and shows how petrol prices are going to cause serious problems for van insurance UK wide in the future if the current rise is anything to go by.

Phil Moss, Commercial Director for Swinton Commercial, said: "This increase in fuel costs could lead to a number of things; firstly, it could mean an increase in fuel efficient driving which could lead to fewer accidents on the road and secondly, we could see an increased demand for alternative fuel vehicles".

About Swinton:
  • Swinton Commercial is the dedicated commercial insurance division of the Swinton Group

  • Swinton Commercial was awarded Commercial Lines Broker of the Year 2008 and is a finalist at the British Insurer Awards 2009

  • With 603 branches nationwide Swinton is the UK's largest high street insurance retailer

  • Unlike many other companies in the financial services industry, Swinton is committed to keeping its branches open for business, and part of the community

  • Swinton provides a one-stop-shop for the insurance and related needs of its clients, offering home, car, caravan, business, holiday, motorbike and even classic car insurance

  • With a dedicated team of advisors on hand at every branch to search a panel of insurers to offer quality cover at competitive rates

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