Ireland’s Guide To Money And Living

The rising cost of motoring

Rising motoring costs

Being a motorist these days can be quite stressful. Apart from the tedious hours spent sitting in traffic jams, you have to worry about paying for tax and insurance, fuel and the inevitable repairs required (unless you bought a unicorn).

According to the AA’s annual survey examining the costs of motoring, the average Irish family is spending approximately €10,849.42 each year to run their car. Those figures come from the AA’s annual survey of the costs of motoring, and represents an increase of €255.82 on last year’s figures.

Blame for this increase is laid at the door of motor insurance companies – despite a fall in the price of fuel, large increases in insurance premiums mean that any savings made at the pumps are negated.

“In a better year we could be talking about the fall in fuel prices. Drivers won’t notice though because of the enormous surge in insurance costs. The insurance crisis is particularly frustrating because much of it is unnecessary. While it is true that motor insurance was losing money a few years ago and the price had to rise a bit, there are things that Government and the industry could do right now that would pull prices downwards,” said the AA’s Director of Consumer Affairs, Conor Faughnan.

The survey noted that the average price of petrol in August (127.5 cent per litre) was approximately 11% less than the same period last year. Giving the example of someone driving a Band B car, they note that this would result in savings of €196.80 over 12 months.

“Other motoring costs did not change significantly with only slight adjustments to be made due to changes in inflation and interest rates as outlined by the CSO. This is reflected in the AA’s calculation of the cost of oil, tyres, servicing, repairs, replacements and garage parking,” the organisation said.

When not writing about all things personal finance, You & Your Money's editor Conor Forrest enjoys reading, football and getting lost in an ocean of Wikipedia articles.