Motor insurance premiums have fallen significantly for a third year in a row but fuel prices have driven up the annual cost of keeping a car on the road, according to a study published today.
AA Ireland's annual cost of motoring survey finds it now costs an average €1,044 to insure a small family car, compared to €1,160 in last year's survey and €1,334 the year before.
At its peak, the average price of insuring a small family car was €1,711, when the survey was carried out in 2003.
However the overall cost of motoring has increased again across all categories of vehicle. It now costs €10,904 to run the same car, a 3.7 per cent increase, or €389, on last year.
A small family car is defined by a vehicle with an engine size of between 1251 and 1500cc. The rise in costs has been driven by surging fuel prices with a price of unleaded petrol now averaging 117.2 cent per litre in the last 12 months, compared to 100.4 cent when the survey was published last year.
The same small family car, doing an average of 16,000km per annum will now use up petrol to the tune of €1,522, compared to €1,323 at the same time last year. The spend is obviously bigger for cars with bigger engines. For example, a large SUV travelling an average 16,000km a year will cost its owner €2,960 in fuel, compared to €2,573 in 2005.
A compact executive model with a 2,000cc engine will cost an average €1,973 in petrol compared to €1,714 this time last year, the survey finds. Putting 50 litres into the tank now costs €58.60, compared to €50.95 this time last year.
"Fuel costs are a major problem and they are certainly beginning to bite," said AA Ireland's Conor Faughnan. "Every cent that petrol prices go up costs the average motorist an extra €15 annually."
Parking charges still represent a major cost for motorists, now accounting for an average €3,761 a year compared to €3,620 this time last year.
While the purchase price of cars has not increased significantly, servicing and spare parts costs have risen with the rate of inflation, which has averaged 3.9 per cent in the last 12 months.
SUV drivers will already know that the cost of running a vehicle with a larger engine is significantly higher than the cost of running a smaller vehicle. Right across the board, costs are much higher.
It costs only €151 to tax a car with an engine size of 1000cc or less, compared to €1,343 for a vehicle with an engine size of between 3001cc and 4000cc.
Insurance costs, although they have fallen greatly, are also much higher for larger cars. Insuring a car with an engine size of between 2001cc and 2500cc costs an average of €1,619 compared to €1,044 for a small family car and only €760 for a 1000cc car.
It now costs an average €19,038 to keep a vehicle with an engine size of between 3001cc and 4000cc on the road. This is more than twice the cost of maintaining a car with an engine no greater than 1000cc, which will set you back a mere €9,225 per annum in fixed and operating costs.
In between, the small family car costs an average €10,904 per annum, while a larger car with an engine size of between 1751cc and 2000cc will relieve you of €12,726 per annum.
