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Cost of motoring continues to soar

Written By Paul Lucas Published On: Nov 22 2009
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Late last week we told you how petrol prices are set to soar and how diesel has hit a £5 a gallon average, and now we have news on the soaring average cost of running a car.According to new data from Sainsbury’s Finance, the average annual price of running a car is now £2,388 – up from £2,100 in 2007. That’s an increase of 11 per cent in the last two years. The figure is based on the costs of car insurance, fuel, servicing, MOTs and road tax and has also risen by 2.68 per cent since 2008.A particularly large spike has occurred in the car insurance sector – premiums have risen by nearly 14 per cent since 2008 and by 23 per cent compared to 2007. Tax has also risen by eight per cent in the last year.According to Ben Tyte, Sainsbury’s car insurance manager, drivers must shop around both for car insurance and servicing to keep their costs in check.In some comparatively good news, the cost of fuel has fallen by just over one per cent since 2008 – although this has been usurped by the news that drivers may be forced to pay as much as £5 a gallon in the run up to Christmas. This will mean that filling up an average family car will cost £60.50 this December – an increase of £12.15 compared to a year ago.The increases are expected to spark further debate and outrage following the Government’s decision to increase fuel duty by 2p a litre in October – the third rise in less than a year following hikes in April and December.

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