This site uses cookies to improve your experience and to provide services and advertising. By continuing to browse, you agree to the use of cookies described in our Cookies Policy. You may change your settings at any time but this may impact on the functionality of the site. To learn more see our Cookies Policy.
OK
Dublin: 7 °C Saturday 23 March, 2019
Advertisement

Motorists paying an extra €250 per year over spiralling insurance costs

Insurance premiums are wiping out any savings motorists are making from low fuel prices.

Image: Shutterstock/Pavel Mitrofanov

THE AVERAGE COST of running a family car has increased by €255.82 to €10,849.42 in the last year, according to the AA’s annual survey of motoring costs.

However, fuel prices are down significantly compared to last year. The average price of petrol at 127.5 cent per litre in August is just over 11% less than it was 12 months ago.

The AA says the 38.6% increase in insurance premiums is wiping out any savings motorists are making from low fuel prices.

Director of Consumer Affairs Conor Faughnan said, “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.”

The survey found that other motoring costs did not change significantly with only slight adjustments to be made.

The AA factors in costs like depreciation and interest charges, as well as replacement for components such as tyres etc over the car’s life in its calculations.

Read: Elderly woman dies after being struck by car in Dublin>

  • Share on Facebook
  • Email this article
  •  

About the author:

Read next:

COMMENTS (68)

This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
write a comment

    Leave a commentcancel

     

    Trending Tags