17 November 2009 / by Rachael Stiles
The average cost of car insurance has risen 23 per cent since 2007, market analysis from Sainsbury’s Finance has discovered.
The annual total cost of running a car has risen more than 11 per cent in the last two years, from £2,100 to £2,338, the study found, and car insurance accounts for the largest increase by far, with the average premium rising to £551.74.
The cost of servicing a car has fallen slightly with inflation, but the other costs involved in running a car have risen in the last few years, with tax going up eight per cent since 2008 and 22 per cent since 2007.
While fuel prices have fallen slightly, by 1.22 per cent from their peak last year, they are up 7.56 per cent on two years ago, costing the average driver £1,266.17 a year.
Commenting on the rising cost of running a car, Ben Tyte, manager Sainsbury’s car insurance, said: “While certain costs of running a car have fallen during the past year, compared to 2007, the cost of motoring has still increased fairly significantly with road taxes and insurance premiums both on the rise.
“The cost of driving a car can be kept better in check by shopping around, particularly for car insurance and servicing,” he added.
© Fair Investment Company Ltd