One in three struggled with the cost of driving in the past month

More than one in three motorists (35%) have struggled to afford the cost of driving in the past month, according to new research from Comparethemarket.

The research found that four in ten motorists (40%) fear they will no longer be able to keep driving if costs continue to increase.

Separate figures from Comparethemarket show the average annual cost of driving a petrol-fuelled car has risen by £272 year-on-year in September to reach £1,866. The higher price of petrol has mainly driven this jump in costs. The average annual cost of petrol is now £1,076 – a £211 uplift compared to the previous year. The typical car insurance premium has also increased by £51 year-on-year to £570 due to a rise in the value of second-hand cars and more expensive repair costs. 

Increasing costs mean driving is becoming unaffordable for many motorists. More than eight in ten motorists (83%) have spent more on fuel in the past six months, and 40% have spent more on car insurance. More than half of drivers (54%) are worried they won’t be able to pay for fuel in the next three months, and a quarter (25%) are concerned about covering the cost of car insurance.

Nearly nine in ten drivers (88%) are worried about being able to pay for driving due to increases in other household bills. Energy bills (76%) and food bills (59%) are the top concerns. Comparethemarket’s latest Money Action Index found households worried about the rising cost of living think they will need an extra £224 per month on average to cover their upcoming bills. As a result, nine in ten drivers (90%) are concerned about petrol and diesel prices. In addition, four in ten motorists (42%) think they will need to take on additional debt to afford to keep driving, while 11% have been forced to ask family or friends for financial support in order to run their car.

The increasing cost of driving is harming motorists’ social lives and their finances. Three in ten drivers (30%) said higher car running costs have meant their social life has deteriorated, and 31% have visited their family less often. To reduce rising costs, 53% of motorists are making fewer journeys, and 35% are buying less fuel. More than one in three (33%) are walking or cycling more, and 34% are cutting back elsewhere to afford fuel. Drivers could also make significant savings by comparing prices online. They could save up to £328 by shopping around and switching their car insurance through Comparethemarket ahead of renewal1. 

Julie Daniels, Director at Comparethemarket, said “The cost of petrol is still considerably more expensive than last year, and other household bills have surged even higher in recent weeks. As a result, many drivers are finding it difficult to afford staying on the road and are being forced to make fewer journeys or cut back on seeing friends and family. Worryingly, some are going deeper into debt to keep driving.”

“Understandably motorists will be keen to make savings wherever possible to reduce driving costs. Driving smoothly and removing heavy items uses less fuel. Making sure your tyres are at the correct pressure can cut petrol costs and improves how your car brakes, how it takes corners, and how long your tyres last.”

AVERAGE ANNUAL COST OF RUNNING A PETROL-FUELLED CAR
Cost name	September 2021	September 2022
Insurance	£519	£570
Fuel	£866	£1,076
Est. VED (Road Tax)	£155	£165
MOT	£55	£55
Total cost per year	£1,595	£1,866