Fuel prices cancel out lower car insurance
HIGHER fuel prices have offset falls in insurance premiums, meaning there has been a rise in the cost of running a family car.
The average cost of running the car for a year is now €10,691, according to the AA’s annual survey.
The total is an increase of €20 on the same figure for last year.
Fuel costs have been the big price pressure point for motorists this year.
The average price of petrol was at 147.6c a litre in June, a rise 13.3c a litre on the price 12 months ago.
A typical family car will cost €150 more for a year’s fuel compared to last year.
Tax makes up more than 60pc of the price of petrol and diesel at the pumps.
Prices at the pumps were rising almost every month, the motoring organisation said.
Rising fuel costs wiped out the benefits to motorists from reported falls in insurance premiums.
CSO figures show that the average cost of motor insurance has dropped by 11.5pc compared to June last year. This comes after years of stiff rises.
However, according to the AA’s monthly fuel prices survey, the average cost of a litre of fuel has risen by almost 10pc in the same period.
Conor Faughnan of the AA, which itself is a provider of insurance, said the latest findings from the CSO are welcome.
Young drivers, drivers who have spent a number of years abroad, or those with past claims, are still being hit with high insurance costs.
He called for an easing off on the tax applied to petrol and diesel.
“If we want to do something to help ease the cost of motoring then we need to take a long look at the extent to which we tax fuel,” Mr Faughnan added.
He said this nation has a long history of underinvestment in public transport, particularly in rural areas.
This means it is unfair to push expense on those who have no alternative to the private car.