The cost of running a car keeps going up but by shopping around for insurance, breakdown recovery, fuel and other necessities, drivers can cut the cost of motoring.
In a recent survey, Sainsburys Bank estimates that the annual cost of running a car has risen by about 7.2%. The average annual cost of motoring (excluding any interest repayments on car purchase loans, is now around £2,200 - up from an estimated £2,050 last year. Fuel and insurance cost the most, with drivers paying on average £1,226 for fuel and £462 for insurance each year. Servicing, MOTs, tax and breakdown cover all add to the total cost too.
Competition between car insurance companies is intense, which is good news for motorists but only if they are prepared to shop around for competitive rates and quality cover. The best deals are often saved for new customers. Premiums vary depending on your age, where you live, what car you drive, where you park overnight and your driving history. To get the best deal, use the internet to compare premiums or ring round several insurers to find the best price.
Sainsburys Bank attributes most of the increased cost of running a car to a rise in fuel prices. The bank estimates that on average motorists now spend around 11% more on fuel than they did last year. Petrol prices vary from one forecourt to another so its worth shopping around and making use of discounts and loyalty cards offered by different suppliers. Sainsburys and BP for example offer Nectar points.
Driving a smaller, more economical car can cut the cost of motoring dramatically. Insurance and running costs are generally less and you will also pay less tax. Drivers of hybrid electric cars dont pay any road tax at all while at the other end of the scale drivers of cars with big engines pay £210 a year.
Reduce the cost of your car insurance