Increases to car insurance rates and the price of petrol has run up the cost of motoring by a total of 14 per cent over the past 12 months, according to one leading motoring organisation.
According to data recently released by RAC, it now costs the average motorist the painful sum of £128.64 every week to run a new car due to petrol prices and comprehensive motor car insurance premiums. Moreover, new cars have risen by £1,556 in price on average since 2007, which worked out to 55.74p every mile – and the running costs for used cars has increased as well, according to the RAC, by a total of 13.2 per cent.
Car finance and depreciation are the primary drivers of increased running costs, the RAC said, and what has been causing costs to rise nearly three times as swiftly as the 5 per cent inflation rate as measured by the Consumer Prices Index. By taking both factors out of the calculations, costs were only up by 11.1 per cent in comparison to 2010’s figures, the motoring organisation and discount car insurance provider said.
New cars tend to lose their value at breakneck speed, with depreciation rising by 16.67 per cent over the past 12 months. Insurance costs were also a culprit, with premium prices up a sum total of 14.38 per cent compared to last year, while 12.4 per cent of the costs of keeping a car can be contributed to rising petrol costs, as the average price per litre for unleaded fuel is around 15p more than it was in November of 2010 – and diesel fuel has risen even higher, with average prices growing 18p more expensive than last year’s.