Insurance
Car running costs up nearly £300 a year
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.”
Related Posts
There are 0 Comment(s)
Everything you wanted to know about ISAs…but were afraid to ask
The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...
Your right to a refund if travel is affected by train strikes
There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...
Could you save money with a social broadband tariff?
Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.
What will happen if rates change
How your finances will be impacted by a rise in interest rates.
Regular Savings Calculator
Small regular contributions can build up nicely over time.
Online Savings Calculator
Work out how your online savings can build over time.
DIY investors: 10 common mistakes to avoid
For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.
Mortgage down-valuations: Tips to avoid pulling out of a house sale
Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?
Five tips for surviving a bear market mauling
The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...
Money Tips of the Week
© AE3 Media Ltd, Floor 7, Lincoln House, 296 - 300 High Holborn, London WC1V 7JH, Company.