Drivers are now paying an average of £1,997 to keep their cars on the road, a rise from £1,730 in 2022.
This includes the cost of car insurance, which has risen 50% in the last year, along with road tax (VED) petrol and MOT costs.
The 15% rise in costs has heaped an extra £267 on motorists, with 31% of drivers saying they found it difficult to cover their driving costs in the last month.
Almost eight in 10 drivers (78%) are worried about the rising cost of car insurance and 43% said they are likely to take on more debt to pay for their car costs, according to the research from comparison site Compare the Market.
It revealed that 94% of drivers have seen their driving costs rise and 56% said they have paid more for car insurance in the last six months. To help cut costs, 44% said they were making fewer journeys and 27% were buying less fuel.
Car insurance rises while petrol costs fall
One of the big contributors to the rise is car insurance. It rose an average 50%, hiking premiums by an extra £295. In October average prices were £884, a rise from £589 the year before.
An increase to the cost of claims for insurers along with higher inflation have been blamed for the big rise in policy prices.
Meanwhile, the average cost of road tax (VED) has risen to £180 from £165, while the cost of an MOT at £55 has remained the same.
However, one area where costs have fallen when compared with 2022 is petrol.
In October 2022, average petrol costs were £921 as prices surged off the back of the Ukraine war before falling to £878 this year. Earlier this month, a 2p drop in petrol prices was recorded.
‘Take on further debt to keep driving’
Julie Daniels, motor insurance expert at Compare the Market, said: “The surging cost of car insurance means some drivers are finding it difficult to stay on the road. As a result, many motorists have been forced to make fewer journeys or are cutting back on seeing friends and family.
“Worryingly, some expect to take on further debt to keep driving. With car insurance pushing up the cost of driving significantly, it’s important for motorists to compare prices online ahead of renewal as there could be hundreds of pounds to be saved. It’s also worthwhile for people to consider if they’re able to encourage or support friends and family members to look for savings online.”
