€200 drop in motoring costs as fuel and insurance prices cut

The cost of motoring has dropped by €200 due to falling fuel and insurance prices, according to the AA.

The average cost of running a family car for a year is €10,386 according to the AA’s annual survey of motoring costs. In total there has been a decrease of €207.26 on the same figure for last year, according to the AA’s calculations.

The fact that fuel has dropped over 12% year-on-year is one of the biggest factors.

There has also been a 6% drop in insurance prices per the Central Statistics Office.

The average cost of a litre of petrol fell from 139.5 cent in July to 125.9 cent this month; diesel fell from 129.9 cent to 117.3cent. Over 60% of the price paid is tax.

Fuel prices have fallen significantly in recent months as a result of reduced global demand during the COVID-19 global outbreak.

Insurance reform

Despite recent CSO data highlighting a drop in motor insurance prices, the motoring organisation has repeated previous calls for the next government and the insurance industry to ramp up insurance reform efforts to aid consumers.

The AA's, director of consumer affairs, Conor Faughnan says it is good news for motorists “The fuel drop is a real saving for all motorists. Insurance is different; the average has dropped but there are plenty of motorists whose particular price has not.

"Groups like returning emigrants, those with claims or other non-standard risks may not have seen any improvement and across the board the cost is still too high.

“While the noticeable drop in driving costs is a welcome development for motorists, we cannot expect fuel prices, the drop in which have been central to the overall drop in motoring costs, to stay as low as they currently are forever."

Each year the AA calculates average prices for each of the respective tax bands and illustrates the cost of running an average family car. The cost of running a ‘Band B’ category 2 car decreased by 1.96% in 2020 when compared to the 2019 figure.

Other motoring costs did not change significantly with only slight adjustments to be made. This is reflected in the AA’s calculation of the cost of oil, tyres, servicing, repairs, replacements and garage parking.

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