Drivers have been warned of hidden costs which are ramping up total price of owning a car as motorists now pay nearly a third more to travel on UK roads.
Prices have increased by roughly 19 per cent compared to 2020 with drivers now paying roughly £3,800 annually with car insurance adding heavily to the cost rises.
Depreciation was highlighted as one of the biggest hidden costs associated with owning a car, according to one expert who revealed how average yearly expenses surpassed £1,300.
For petrol and diesel drivers, they are still being hit with expensive fuel prices which have gone up by nearly 6p since the start of the year.
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Car insurance up by 50 per cent since last year
GETTYAndy Wood, finance expert from Tax Natives, said: “Everything from buying the car to maintaining it is more expensive.
"Depreciation continues to be the largest hidden cost of car ownership, with an average yearly expense of £1,391.
“Combined with the necessary costs of repairs and servicing, this highlights the need for car buyers to consider the total costs beyond just the original price."
“Fuel remains a major cost, with petrol and diesel drivers spending upwards of £1,000 yearly.”
Other costs, including road tax at £175, make car ownership a significant financial commitment, Wood warned.
Often overlooked charges involve parking, tolls, and permits, amounting to £29, “a small but necessary expense for many drivers” Wood remarked.
Additionally, the cost of garage rent and other services, including car washing, comes to £34 while memberships to motoring organisations such as the AA or RAC can also increase costs with drivers paying £15 annually.
Wood added: “Driving lessons, which some may get to refresh their skills and other miscellaneous car products such as anti-freeze, battery water, and cleaning materials, collectively add £20 to the total costs. It's the smaller, sometimes unexpected expenses that can sneak up on car owners."
Drivers saw premiums increase by 56.4 per cent in the year to February with drivers quoted between £500 and £749 depending on the region.
Car insurance price rises have been well documented this year, with the Association of British Insurers (ABI) working to limit the impact on customers.
Jonathan Fong, manager of general insurance policy at the ABI, said: “Insurers are aware of the financial challenges customers are facing and are determined to keep motor insurance as competitively priced as possible.”
On top of steep car insurance prices, drivers also pay insurance premium tax, which is set at 12 per cent and is a levy on general insurance premiums, this is another “hidden” costs which is ramming prices up.
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Depreciation one of the biggest hidden costs associated with owning a car
PATo help lower costs for drivers, the ABI revealed it has been consulting with the Government to help reduce IPT which could save motorists money.
It is estimated that the Government generated roughly £7.45billion from IPT last year with stats revealing it will surpass £8bn this year.