Home Business NewsBusiness Revealed: Car owners will spend £3,100 a year on car ownership costs

Revealed: Car owners will spend £3,100 a year on car ownership costs

by LLB Reporter
20th Apr 22 9:56 am

Insurance Revolution has explored in detail how much money car owners must spend on maintaining their vehicle. These costs include car insurance, servicing, petrol and other expenses.

Aside from the car purchase price, it is estimated that car owners will spend around £3,100 a year on car ownership costs.

Insurance Revolution found that the biggest expense by far is on fuel, with people spending on average £1,000 a year on either petrol or diesel.

Another large cost when it comes to car ownership is car insurance, it was revealed that the average annual car insurance policy for individuals with no claims or convictions is just under £500.

Another bill to take into account is car servicing, with the average amount to service or repair a car per year being between £250 and £300.

Other expenses that people sometimes forget to take into consideration include

  • Road tax (This will be increasing from 1 April 2022, Chancellor Rishi Sunak announced his proposal in the autumn Budget 2021)

  • Car Washing

  • Necessities such as antifreeze, wiper fluid, tools.

  • Fines

  • Car parking costs/permits

Insurance Revolution also explored how much it cost per mile for petrol/diesel.

Although the cost of fuel differs depending on different factors, such as the fuel efficiency of the car, the below tables feature the data (accurate as of 23 February 2022).

Petrol-

Engine size (cc)

Mean MPG

Applied MPG

Fuel price (per litre)

Fuel price (per gallon)

Rate per mile

Up to 1400

54.2

52.7

147.0 pence

668.0 pence

12.7 pence

1401 to 2000

46.1

44.9

147.0 pence

668.0 pence

14.9 pence

Over 2000

30.8

30.0

147.0 pence

668.0 pence

22.3 pence

Diesel-

Engine size (cc)

Mean MPG

Applied MPG

Fuel price (per litre)

Fuel price (per gallon)

Rate per mile

Up to 1400

65.4

£63.6

151.1 pence

686.9 pence

10.8 pence

1401 to 2000

52.9

£51.3

151.1 pence

686.9 pence

13.4 pence

Over 2000

43.5

£42.1

151.1 pence

686.9 pence

16.3 pence

CEO of Insurance Revolution Mark Rigby said “Buying a new car is exciting and fun, and it should be! You want to show off your new purchase to everyone you know and maybe plan a much-needed road trip too.

“While we want to join you in your excitement, it’s also important to be aware of the extra bills that people sometimes forget about.

“We hope that our research has helped car owners and future car owners with not just the biggest costs but also the things that people sometimes forget about when owning a car such as road tax, parking and car-washing.

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