Cost of running a car up by 10%, AA finds

The cost of running a family car has risen by 10 per cent for the second consecutive year, according to the Automobile Association.

In its annual survey of motoring costs, the AA estimates it now takes €10,196 to run a small family car for 12 months, up €979.60 on 2001.

Not surprisingly, much of the blame for the increase is placed on the motor insurers, with the survey showing premium costs up by an average 25 per cent. Parking, spare parts, and servicing are all marginally more expensive, it indicates, but despite a volatile year, petrol prices are about the same as 12 months ago.

Apart from that, the only good news for motorists is the fall in interest rates, which offset some of the increase in the cost of keeping a car.

The AA calculates average motoring costs on the basis of a 1251-1500cc vehicle with an annual mileage of 10,000. This gives a figure €7,697 for standing charges, including depreciation, and operating costs of an average 24.99 cent per mile.

Unusually, the calculation of the insurance figure assumes no no-claims bonus, which the AA admits is not typical and exaggerates the average cost under this heading (€1,534 in the survey).

But association spokesman Mr Conor Faughnan said the assumption of a zero no-claims bonus had always been a factor in the survey and was retained for accurate comparison with previous years.

The calculation did not distort the year-to-year trend, he added, and the reality was that "the bills have been rising remorselessly".