The average annual cost of owning and running a car has risen by 14 per cent to an average of £2741
24 November 2011

The average annual cost of owning and running a car has risen 14 per cent in the last year, according to research by the RAC.

The firm’s annual Cost of Motoring Index shows that motorists are facing an average bill of £6689 - £819 more than last year. That’s almost three times the current rate of inflation.

The index calculates ownership costs based on the complete range of financial outgoings. Day to day running costs, excluding finance and depreciation, have gone up 11 per cent since last year, with the average outlay being £2741.

The largest single increase has been in the cost of fuel. With the price of petrol having risen 14 per cent, and diesel up by 15 per cent, motorists are facing an extra £160 on average in fuel costs per year, with the bill now £1458 for drivers of normal family cars.

Insurance premiums have also risen 35 per cent since 2009, thanks to uninsured drivers and personal injury claims pushing up costs for insurers. Typical cover now costs an average of £551.

“With the annual cost of motoring approaching seven thousand pounds, the price burden of car ownership is hitting drivers hard,” said RAC spokesman Adrian Tink. “The increase of almost three times the rate of inflation is crippling drivers’ wallets and something needs to be done to stem the tide.”

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The RAC is calling for the scrapping of next year’s planned fuel duty increases to reduce the growing pressure on motorists' wallets.

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