Car running costs up nearly £300 a year
The typical cost of running a car has increased by £291 year-on-year due to higher insurance and fuel costs.
A study by Compare the Market found it now costs an average of £1,860 to run a car for 12 months, £291 more than it did last year.
Researchers found that drivers will spend an average of £955 on fuel this year at current prices, compared to £722 in 2021. According to RAC Fuel Watch, petrol is now at £1.64 per litre, compared to an average of £1.24 a litre in 2021.
Petrol and diesel prices went up 20p a litre last week alone due to the impact of the war in Ukraine. FairFuel UK is calling on the chancellor to urgently cut fuel duty by at least 5p a litre.
Compare the Market also found that average car insurance premiums have risen by £60 year-on-year in February to reach £673. In comparison, the typical policy cost £613 in 2021.
The price comparison site found that the cost of driving is even more expensive for young drivers. It found that drivers aged between 17 and 24-years-old pay an average of £1,154 for car insurance. This means the typical cost of running a car for a young driver now stands at £2,341 a year.
Alex Hasty, director at Compare the Market, said: “Motorists will understandably be worried that the cost of driving is increasing rapidly. Soaring petrol prices and rising insurance premiums are hitting household finances when budgets are being squeezed by rising inflation and surging energy costs.
“If these increases continue, there is a risk that driving will become prohibitively expensive for lots of people. Young motorists in particular may struggle to afford to drive as they face much higher insurance costs.”