Cost of motoring rises by 2.6%

The annual cost of running a car has risen by around 2.6% when compared with last year, but is 10% higher than in 2005, according to Sainsbury’s Bank. The bank calculates that the average annual cost of motoring, excluding any interest repayments on loans taken out to purchase cars, is now around £2,259, up from an estimated £2,205 last year and £2,053 in 2005.

Sainsbury’s Car Insurance believes motorists can dramatically reduce their motoring costs by taking a few simple steps, such as shopping around for car insurance. For example, insuring your car with Sainsbury’s could save you up to £124 when compared to other insurers. The bank has produced a free guide (available at sainsburysbank.co.uk/motoring) for motorists on how to reduce the cost of driving.

Joanne Mallon, Sainsbury’s Car Insurance Manager said: “The cost of motoring can be high but it is possible to keep it in check by, for example, shopping around for car insurance and fuel.”

“However, it is not only the costs associated with running a car that motorists need to tackle but also the price they pay for them. Our research shows that of those questioned between September 2007 and March 2008, some 12% of people planning to buy a car don’t intend to haggle over the price they pay and a further 38% only plan to haggle slightly. This is despite the fact that you can save well over £1,500 on the price of a brand new car by doing this.”

Sainsbury’s Car Insurance offers competitive premiums and could save motorists up to £124. It was named in the top 10 most competitive motor insurers. In addition, Sainsbury’s also offers motorists an extensive range of cover and benefits. This includes a courtesy car when using one of its recommended repairers (comprehensive cover only) and a no-claim discount of 70% if you have not made a claim in the past five years, rising to 75% after a further five years’ claim free driving with Sainsbury’s Car Insurance. It is also one of only a few providers to offer new for old replacement child car seats after an accident as a standard feature of its comprehensive policy, even when there is no perceived damage, as well as support and compensation if you’re a victim of car jacking or road rage.

For further information, visit sainsburysbank.co.uk.