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The real cost of running a car

The cost of owning and running a car in Britain is only set to increase, according to recent surveys.

With the average price of running a car now at an eye-watering £3,090, up 20 per cent in just one year, households owning more than one car are feeling the pinch considerably.

Read to below to find out just what the higher costs are for running a car.

Insurance

Over the past year insuring your car has increased by a shocking average of 30 per cent. This is the single biggest rise in any automotive-associated cost, even beating fuel for the most expensive increase.

However, with road accidents (particularly fatal collisions) actually falling, it seems odd that premiums are going up? Industry insiders blame the rise of false and exaggerated claims by dishonest drivers as being the cause.

As well as this, driving associations blame greedy insurance companies for hiking up premiums despite the fall in accidents on the roads.

Petrol

The cost of refuelling your car increased by 22 per cent over the past year, a major increase over a decade which saw prices increase by 60 per cent overall.

Economists cite increasing instability in the Middle East, the increase in VAT back to 20 per cent and fuel duty increases as the main reasons behind the increases. As such, the cost of driving a modest Ford Focus car 10,000 miles has increased from £1,400 to around £1,700 in one year.

Petrol companies insist that the rise in petrol costs are only a reflection of the rise in oil prices, which they are forced to pass onto the consumer.

However, drivers accuse the petrol companies of being quick to increase prices at the pumps in response to oil price inflation. On the other hand, drivers point out that when oil prices fall in the world market, petrol companies rarely drop petrol prices nearly as quickly or deeply.

British petroleum companies in particular have been targeted by critics, with prices in Europe dropping 4 per cent to 1.21 pence a litre when in the UK prices increased.

Servicing

Even servicing your car has gone up – although thankfully not as much as insurance or fuel costs.

Qualifying for an MOT has increased by 1.9 per cent and motoring taxes, which are now linked to your car emissions, have increased by 5 per cent. This means the average cost of taxing your car is now £173 and MOT is around £55.

Conclusion

With the costs of running a car only set to increase, drivers are finding it ever more difficult to stay on the road. For drivers in need of extra help, there are options available. You can review the best UK car loans here.

This was posted in Bdaily's Members' News section by Will Hemner .