Motoring costs us €10,600 a year as insurance hikes hit
Published 19/08/2015 | 02:30
The cost of running a family car stands at €10,600 a year as large rises in insurance premiums wipe out the gains made by falling fuel costs.
The overall cost of motoring has dropped slightly in the past year thanks to falls in petrol and diesel.
But these gains were largely wiped out by some of the largest rises in insurance premiums in a decade, a new AA cost of motoring survey shows.
The premiums for car cover shot up by 20pc in the last year.
AA Ireland director of consumer affairs Conor Faughnan said: "This is the biggest one-year rise in insurance prices in well over a decade."
The €10,600 annual cost of running a typical family car is down almost €18 on the previous year, according to the AA.
But Mr Faughnan warned that motor insurance premiums rates would keep rising.
He said insurers were nervous about rising claims and were hiking premiums in a bid to improve their reserves.
"All prices are rising, but if you have had no claims or points in the year and have done nothing wrong, it feels unfair.
"Unfortunately, the trend is set to continue for the rest of the year and into 2016 in the AA's view," Mr Faughnan said.
The calculations show it costs €1,098 to insure a car in the Band B emissions category.
This is based on the driver not qualifying for a no-claims discount, which is how the AA survey has been calculated for the past 40 years.
Mr Faughnan said shopping around for cheaper insurance can pay off for drivers.
But drivers have benefited as the average price of petrol at 145.3 cent per litre in July is 7pc less than it was 12 months ago.
For a typical motorist in a Band B car, that works out at a saving of €144.74 annually.
The annual cost of motor fuel will still work out at €1,761, with 60pc of this cost made up of State taxes.
Other motoring costs did not change significantly with only slight adjustments to be made.
The AA calculates that drivers spend €4,000 on the cost of parking, or a garage, and other motoring expenses. The cost of depreciation for a Band B car was €1,684 for this year.
Motor tax costs €270.