Sainsbury's offer 10% discount on car insurance

Sainsbury's Finance estimates that the annual cost of running a car has increased yet again, rising by around 2.68% when compared with last year. The bank calculates that the average annual cost of motoring, excluding any interest repayments on loans taken out to purchase cars, is now around £2,338, marginally up from an estimated £2,277 in 2008. Yet, when benchmarked against 2007, the increase is more startling with the current total coming in at just over 11% higher than in 2007, when the estimated annual cost for running a car was nearly £240 less at £2,100.

The most significant cost increase this year has been car insurance, which has increased by nearly 13% compared to 2008 and by 23% compared to 2007. This is followed by tax, which has gone up by 8% in the past year alone and by over a fifth (22%) over the past two years.

Fuel prices are slightly lower now than in October 2008, yet even this cost has soared compared with 2007, with the average car owner shelling out around £1,266 per year to fuel their car. Servicing costs are also estimated to have fallen marginally over the past year due to the deflationary effects of the recession.

Sainsbury's Finance believes motorists can dramatically reduce their motoring costs by taking a few simple steps and in particular by shopping around for car insurance. As well as competitive premiums, Sainsbury's Car Insurance offers a 10% discount when you buy online.

Ben Tyte, Sainsbury's Car Insurance Manager 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."

Motorists could also save money by looking at the prices they are prepared to pay for their cars. Sainsbury's Finance's research shows that of those drivers who were planning to buy a brand new car between February and July 2009, up to 117,000 said that they did not plan to haggle at all over the price they paid and a further 304,000 people were only prepared to haggle ‘slightly' over the price. This is despite the fact that depending on the car they want to buy, they could obtain a discount of up to 50% on the list price.

For further information, visit sainsburysfinance.co.uk.