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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.

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>

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