High motor car insurance costs have contributed to the rising cost of owning a car in the UK. Having risen by 6.3 per cent over the last year, car insurance rates have helped to drive an average increased spend of £346 for the average car owner in the last 12 months.
In addition to the scarcity of discount car insurance, rising fuel prices contributed significantly to the overall cost increase. Motoring organisation RAC’s recently published Cost of Motoring Index reported that pain at the pump accounted for 33 per cent of the overall cost increase.
The average motor vehicle operator pays about £1,300 every year to fill up the tank of their car. This figure has helped to push the yearly running expenses up to a total of more than £5,860. The per-mile cost works out to be approximately 48.91p.
New cars were more expensive than used cars, a trend that has been continuing, stated the RAC. The cost of operating a used vehicle was just over £4,440 per year.
The motoring organisation’s research findings additionally revealed that since the credit crunch and worldwide banking crisis began three years ago, the inherent costs of owning and operating a motor vehicle have risen by £736.
Adrian Tink, motoring strategist for the RAC, commented that there seems to be no signs of abatement to the rising cost of motoring for the 34 million drivers in the UK.
Mr Tink also made the suggestion that petrol prices may reach a record high quite soon, citing the 20 per cent VAT increase coming into effect in January as the culprit.
The RAC takes several different factors into account when calculating its yearly Index including such variables as insurance, fuel, road tax, maintenance, finance, depreciation, and breakdown cover.