The Hidden Costs of Parking Apps

The Hidden Costs of Parking Apps

Digital technology and parking applications have changed the way paying for parking used to work and can be complex and time-consuming in some cases. While mobile parking solutions are very convenient, they also come with many extra charges, which may skyrocket the overall parking cost. Let’s find out how current parking apps charge drivers and what it means for them and general urban mobility.

The Rise of Parking Apps

Parking apps that have become extremely popular in most UK cities are RingGo, PayByPhone, and JustPark. These apps enable drivers to pay for parking using their smartphones instead of making cash or card payments at parking meters. However, there are hidden costs that go unnoticed by many users.

Plan Insurance can provide bespoke taxi insurance quotes for all UK drivers. Just fill in our short online questionnaire, and our professional brokers will be in contact to arrange your insurance.

The Hidden Charges

Convenience fees and service charges are the primary sources of revenue for these parking apps. They could range from a few pence to several pounds as add-on costs to a transaction. For example, a convenience fee is charged just for using the app, while a service charge might include processing the payment.

Some parking apps offer extra opt-in services, including parking insurance and SMS reminders. Parking insurance may significantly inflate costs: Charges often drive up the total parking cost by more than 50%, while these insurance covers usually offer protection against breaking into cars. The SMS reminders will inform the users about the expiry time of parking and could cost between 10p and 20p per message. These seem minor costs, but they accumulate for regular users.

See also  Insurer Can’t Flush Away Its Duty to Defend

Surcharges on High-Emission Vehicles

The apps require users to enter their vehicle’s registration number. This info can be cross-referenced on online databases to find out its engine type and size. Some authorities have subsequently included emission surcharges in parking apps to promote eco-friendly transport. Green levies are other names for additional charges for high-emission vehicles. For example, London charges up to an extra 50% for parking these vehicles in certain parts of the city, which can sometimes double the cost of on-street parking.

Transaction Fees and the Commercial Tie-Ins

Transaction charges are another common fee, usually a few pence or maybe a few pounds. Some parking apps earn other income from commercial tie-ins, like promotional deals on unrelated products. Such approaches show the general push towards parking app companies’ monetisation strategies.

All these charges, taken together, can turn into a figure to reckon with. UK government figures have stated that drivers here fork out nearly £5.5 million every day for parking on public highways and council bays, not including private parking firms.

The Need for Transparency and Regulation

As parking apps become forced on the general population, more transparency and regulation are necessary. Drivers should receive due notice of all potential charges before using the app. Thirdly, and not least in importance, local authorities and regulatory bodies should ensure that these parking apps observe fair pricing and do not exploit consumers with exorbitant fees.

There is no doubt that parking apps make it easier for some to use, but on the other hand, these apps have several hidden costs that rack up quickly and can be difficult for some people to use. Given the increasing usage of mobile parking apps, drivers should be made aware of such charges. Local authorities should ensure that the pricing structure of such apps is transparent and fair rather than treating motorists as cash cows.

See also  Ferrari Thinks This 2024 F1 Car Can Grab More Wins, But Not The Championship

Find out why 96% of our customers have rated us 4 stars or higher, by reading our reviews on Feefo.

To get a quote give our specialist teams a call on 0800 542 2743 or request a Call Back.

Already a client? Why not recommend us to your contacts in exchange for a £50 discount off your renewal with our Refer a Friend scheme.