Typical cost of driving rises by £267 in a year

The annual cost of driving a car has risen by £267 in the last year, new figures suggest.

Research shows that the average annual cost of insurance, taxes and petrol stands at £1,997, up from £1,730 last year. Car insurance is one of the biggest drivers behind this rise, with a typical premium increasing £295 year-on-year to reach £884.

Compare the Market, which collated the research, says that this rise could be due ‘in part’ to an increase in the cost of claims for insurers, with spare parts and rising energy costs making the repair of cars a more expensive process.

The annual cost of fuel, however, has dropped back slightly falling from £921 in 2022 to £878 in 2023, while the price of an MOT remains the same at £55. The average price of road tax has increased slightly though, up to £180 in 2023 from £165 in 2022.

A survey of 2,021 drivers found that more than three in ten have found it difficult to cover the cost of driving in the past month, while 94 per cent of respondents have seen the cost of keeping their car running increase. Nearly eight in ten drivers now worry about how they’ll afford their car insurance policy, too.

More than four in ten drivers expect to take on additional debt in order to keep driving, while 44 per cent are making fewer journeys in an effort to reduce costs. More than one in five said that rising costs are having a negative effect on their social life, too, with nearly a quarter visiting their family less often.