UK car insurance news
07/09/2007

Cheap car insurance firm identifies 3% cost rise in 2007

Female drivers are enjoying a slowing in the rise of motoring costs in 2007, thanks to negligible increases in cheap car insurance premiums and a fall in car maintenance costs.

Research by RAC Direct Insurance revealed that the cost of motoring has risen by just 3% so far in 2007, compared to the massive 11% that we saw in 2006.

The cheap car insurance company pointed out a combination of reasons for this much less substantial increase, including an 8% decrease in the cost of maintaining a car and a drop in the average car tax bill.

This could well be down to more people choosing 'greener' cars that fall into the lower tax band, although 4x4 owners have also seen their road tax shoot up by as much as 60%. Similarly, the fact UK motorists are increasingly opting for smaller, greener cars could well be responsible for the tiny 1% increase in motor insurance costs.

However small the increase in running costs is, most motorists will still have to fork out a substantial sum for their motor. RAC Direct Insurance calculated that the average driver will pay out £5,627 over the course of a year to run their family car - an increase of £162.70 on 2006.

A spokesperson for Which? said: "The cost of running a car is still rising, although many motorists will be relieved that costs are creeping up rather than spiralling.

"There are clearly many reasons for cash conscious drivers to move away from fuel inefficient, larger vehicles towards smaller, cleaner cars - not least lower tax, fuel, insurance and servicing bills."