How much does your car cost you?
The cost of motoring has risen to over £3,000 per year, according to recent research by Sainsbury’s car insurance and this could be the reason behind 1.3 million motorists who have given up driving in the past year.
At a time when everyone is being extra careful with their household budget, it's important that you do all you can to ensure you get the best value for money from your car.
Have a look at our infographic to get a sense of what your car is costing you. Knowing the elements that make up your car’s annual running costs is the first step keeping them down, and keeping you on the road.
To help you find ways to drive down the cost of running your car, Sainsbury's car insurance has focused on each of the areas where motorists' budget is spent.
Insurance
When choosing your car insurance provider, it's important that you compare policies on a like-for-like basis to ensure you get the best quality cover at the most competitive price; comparing on price alone could have disastrous consequences. Between April 2010 and April 2011 the average car insurance premium rose by 30.7% to £814.80 so it definitely pays to shop around.
You should also consider what level of excess you want to have on your premium; having a higher excess could mean a lower premium but it's important to consider how much excess you can afford to pay, should you have an accident, for example.
It also pays to look at the insurance category of any car before you buy; the cost of which will be affected by your car’s price, the price of spare parts, the general cost of repairs, its performance and level of security. You can find out which car insurance category any car is in by clicking here.
Whether you are a new driver or have been driving for a number of years, you should consider your own driving style and if you are a safe driver. Being careful and considerate is important for your own safety and that of the public. If you have a clean driving licence it provides your insurance company with some evidence that you are a responsible driver and could assist in gaining you a competitive quote for your cover.
Fuel
According to the research by Sainsbury’s Finance, the price of fuel has risen by 22.9% in a year, which equates to a rise of over £320 per annum for the average motorist. As a result, more than three-quarters (76%) of motorists have changed their driving habits in the past year in order to save money.
To help you save on your annual fuel bill, here are some top tips:
Shop around for the most competitively priced fuel in your area
Drive slower - driving at 50 miles an hour can consume between 20-30% less fuel than driving at 70 miles per hour.
Drive smoother - avoid accelerating quickly and braking sharply. Trying to keep your speed as consistent as possible can increase fuel efficiency by up to 60%.
Drive smarter - turning the air-con off, checking your tyre pressure and getting rid of unnecessary heavy items from the boot can help save energy, fuel and money.
Servicing
Servicing can be a case of having to spend to save. A routine service usually involves some basic maintenance, such as replacing your engine oil which can prevent severe engine damage. But it can also incorporate other oddities which you can’t do yourself, such as upgrading the software that manages the engine. Keeping your car in good condition could also help to retain your car's appeal should you wish to sell it.
MOT
The price of an MOT has remained broadly the same as last year but make sure you shop around, as some garages will give you a discount if you book your MOT and service together.
It also helps to know the MOT checklist so you don’t fail for something obvious that you could have fixed beforehand. Make sure your car is clean, and that mirrors and lights are in good working condition, for example. MOT testers will look positively on cars in good condition.
Road Tax
Some vehicles are exempt from paying road tax – officially known as vehicle excise duty – but you must still display a valid tax disc which must be renewed each year. For example, cars made before 1973 are historical vehicles and are exempt from paying road tax. Also, the greener your car, the less tax you have to pay. If you’re buying a new car, check its emissions, or consider going electric.
If you’re not driving your car, it is a legal requirement to declare it off the road by completing a ‘Statutory Off Road Notification’ (SORN) which you can fill in online. This declaration is valid for 12 months.
Source: Sainsbury's Finance