Cost of running a car doubles

The cost of running a car has doubled in the past ten years. Sainsbury’s Bank estimates that the average annual cost of motoring, excluding any interest repayments on loans taken out to purchase cars, is now around £2,053.

However, the bank says that motorists can dramatically reduce their motoring costs by taking a few simple steps, such as shopping around for car insurance. Indeed, the average difference in premiums between the most competitive 25% insurers and the 25% most expensive is around £108. The bank, which independent research reveals offers some of the most competitive premiums available, 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: "It is becoming increasingly expensive to drive, but taking a few simple steps such as shopping around for car insurance could save you hundreds of pounds.

"However, it is not only the costs associated with actually running a car but also the price paid for new cars that motorists need to address. For example, between February and July 2005, over 370,000 people said that they planned to buy a brand new car but would not haggle over the price. Given that you can save over £1,500 on the price of a brand new car by haggling, these people could have collectively lost out on more than £550 million."