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You may or may not know that taxi fares are calculated (automatically via software in the metre) using a mixture of time and distance. For example, the cabs in London travelling between 06.00 and 22.00 on a normal weekday (excluding bank holidays) charge according to Tariff 1. For the first 252.4 metres or the first 27.1 seconds (whichever is reached first) there is a minimum charge of £2.40.

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For each additional 126.2 metres or 27.1 seconds (whichever is reached first), or part thereof, if the fare is less than £17.40 then there is a charge of 20p. Once the charge has reached £17.40 the charge increases to 20p per 88.5 metres or 19 seconds (whichever is reached first), or part thereof.

As it’s easier to calculate the cost per mile than per hour (we don’t know the speed the cab will travel at) the rate goes from £15.30 per mile to £2.55 per mile after the minimum charge then it increases again to £3.64 per mile once the charge reaches £17.40. All very complicated but converting into a cost per mile provides us with a better perspective.

So I was quite surprised to read a totally different perspective on rail fares following the last, above inflation, fare rise announcement. It was not only shocking but also gave us a very good reason why people are still not choosing to take public transport over their precious car. The report suggested that peak time rail fares are one of the worst value items, sitting alongside car insurance, inner city/airport parking, energy bills and car mechanics charged by some dealers at £200 per hour.

The columnist explained that his short, early morning trip cost an amazing £1.20 per minute travelled or £72 per hour. So comparing that with a black cab after the minimum charge of £2.40 you pay 20p per 27.1 seconds or £0.44 per minute or £26.40 per hour. Is it me and the columnist, Mike Rutherford, or is this madness? He calculated that those doing the 121 minute trip between Manchester and London during peak time costs them £1.33 per minute or £80 per hour.

He points out that it is just a matter of time before 2^nd class peak travel will reach £100 per hour or £150 per hour first class. Apparently an annual season ticket between London and Manchester costs £14,000 which works out at £1.33 per minute. He then compared that with the cost of a new Mini which, after allowing for ALL running costs including the cost of the car, fuel, insurance, servicing, RFL, depreciation etc. it came in at 33p per minute if you assume an average 60mph.

Now this may be a little unrealistic but it puts rail travel into context. No wonder people still want to avoid train travel! By Graham Hill

Related articles

• Rail passengers ‘hit with £664 fare rise’ (telegraph.co.uk)

Some daft information provided by Admiral insurance exposes the UK’s accident hotspots. If you are a driver in Scotland you are most likely to hit a lamppost while in Manchester and Liverpool you are more likely to have a bump at a set of traffic lights. In order to get these results Admiral analysed over a million claims over the last 5 years broken down into locality.

Thinking of a change but unsure as to the best way to finance your car? Then you need a copy of my car finance book, Car Finance – A Simple Guide by Graham Hill. Click on the link below to buy the best car finance book on the market, available as a Kindle Book and Paper Back.

I find myself asking why? But their analysis revealed that drivers in Motherwell and Lancashire were most likely to have a bump in a car park whilst drivers in Romford, Essex tended to suffer rear end bumps the most. In Tonbridge, Kent drivers need to beware of trees as that is their number one accident claim.

There was a high frequency of rear end bumps in London whilst in the West Country they were more prone to narrow lane collisions. Acting MD for Admiral, Dave Halliday, was mystified why there were so many collisions in Scotland with lampposts. Maybe they are all painted black with most of them unlit? By Graham Hill

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Now here’s something interesting. I’m sure you’ve seen the signs on the motorway that shows a junction and an idea of the time it will take you to get there, something like ‘You will reach the A3 in 15 miles, 13 minutes’. Not quite sure of the purpose unless you take it as a bit of a challenge and see if you can reach it in 10 minutes whilst an unmarked police Read more »

Local authorities are out to get the motorist again. A number of authorities are about to change the periods of payment free parking. Westminster City Council have led the way by voting that parking charges be introduced on Sundays between 1pm and 6pm and to extend weekday and Saturday controlled parking to midnight. Councils outside London Read more »

We have a bit of an exclusive from GHA Finance this week. I am often fighting with dealers and my quoting systems to get the keenest rates for my clients. But whilst we try to get the rates as low as possible customers see this as the only area where they can make cost savings when changing their cars. In fact this shouldn’t be the end of the journey, it should be the start. There are many things you can do to minimise your transport costs which we have discussed in the past such as:  Read more »

Do you live and work in Nottingham? If you do you will no doubt be delighted that they will soon be introducing an at work parking levy on any companies that have more than 10 parking spaces. The proposed scheme puts them at odds with London, Manchester and Cambridge who favour congestion charges as a much fairer way of charging. According to Read more »

There are calls to introduce a new law against those staging accidents and making insurance claims, often making claims for injuries to passengers not in the car at the time of the accident. Fraudsters are hiring cars, finding lone drivers, normally women – getting in front of them and slamming on their brakes causing an accident. They sometimes even get cash from the other driver for damage caused to the hire car. Fears that this is reaching Read more »

One in five of all reported road incidents involves a parked vehicle. There are 700,000 incidents costing an estimated £1.25 billion to repair. About 80% of the parked car incidents (PCI‘s) occurred on the street. The remainder were in public car parks. The cost of repair averaged £1,800. London topped the list of worst cities in the UK for PCI’s followed by Glasgow, Birmingham, Manchester and Norwich. One in 10 PCI crashes handled by Accident Exchange were recorded in the capital. Main contributing factors to the PCI problems are increased congestion on residential streets and competition for car park spaces. The real fear is that with more information available identifying hot spots the insurance companies may increase premiums so much that residents are priced out of insuring their vehicles. By Graham Hill