Research indicates rising costs of running cars

A study published on Wednesday, June 28th has shown that motor insurance premiums have fallen considerably for the third year in a row but that fuel prices have increased the costs of keeping a car on the road.

The motoring survey found it now costs an average E1,044 to insure a small family car, compared to E1,160 in the 2005 survey and E1,334 in 2004.
A small family car, now defined by a vehicle with an engine size of between 1251 and 1500cc, now costs E10,904 to run. Rising fuel prices have increased costs. A price of unleaded petrol now averages 117.2 cent per litre in the last 12 months. This compares to 100.4 cent when the survey was published in 2005.
“Fuel costs are a major problem and they are certainly beginning to bite. Every cent that petrol prices go up costs the average motorist an extra E15 annually,” said the AA’s Conor Faughnan.

Insurance costs are also much higher for larger cars. Insuring a car with an engine size of between 2001cc and 2500cc costs an average of E1,619. This compares to E1,044 for a small family car and E760 for a 1000cc car.