New research(1) from Sainsbury’s Bank reveals that the average annual cost of running a car is around £2,197.42, which is 22% – or £622 – less than 2013. The main reason for this change is that the cost of fuel has fallen by 37.8%(2) during this period.
Fuel makes up nearly half of the cost of running a car, and the second biggest expense is insurance, accounting for around 28%. Since 2013, car insurance premiums have increased by 5.2%.
A new initiative launched by Sainsbury’s Bank entitled ‘The Family Finance Report’, reveals that this year, 67% of those with car insurance plan to shop around(7).
Analysis(8) from insurance market research experts Consumer Intelligence reveals that 70% of people who switched to a new car insurance provider in 2015 did so because they offered the cheapest price available. Nearly half (49%) of those who renewed their car insurance in 2015 with their existing provider saw their premium rise. For 50% of these people, the increase was over £40.
Tom Thomson, Head of Car Insurance Sainsbury’s Bank, said: “Competition is intense in the car insurance industry so it really pays to keep an eye on the premiums you are paying to ensure that you are still getting a competitive deal. It is essential that you compare like for like policies however to ensure they meet your cover needs.”
Ian Hughes, Chief Executive of Consumer Intelligence, said: “If you invest some time researching different insurance providers, you can make some huge savings. People need to get into the habit more of checking their renewal quotes and always shopping around to see if they can find a better deal.
“This is especially true at the moment because the cost of cover has increased during the past few months as the Insurance Premium Tax rise from 6% to 9.5% in November comes into effect, and another rise to 10% will happen from October.”
For information on Sainsbury’s Bank’s range of insurance products, visit www.sainsburysbank.co.uk or pick up a leaflet instore at Sainsbury’s.
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Notes to Editors
1 Based on Sainsbury’s Bank analysis of various sources of data: Consumer Intelligence; petrolprices.com; direct.gov.uk
2 Fuel costs estimated on average economy of a Ford Focus (as below), with fuel costs taken from petrolprices.com on 5th May 2016
Ford focus 2.0 5 gear does on average 37.7 MPG (source: fuel-economy.co.uk) Pence per litre, May 2016 = 108.3p (pence per gallon = 492.2p)
Average miles driven per year = 7,900 (source: RAC Foundation)
Number of gallons to drive 7,900 miles = 209.5. 209.5 * £4.92 = 1,031.41
Cost of fuelling a car for a year = £1,031.41
3 Car insurance information provided by Consumer Intelligence
4 ONS, Family Spending 2015
5 Standard for cars, as recorded at direct.gov.uk
6 Simple average tax figures for petrol and diesel cars, as recorded at Gov.uk
7 Sainsbury’s Bank commissioned Opinium Research to survey 2,006 nationally representative UK adults aged 18+ between 24th to 27th November 2015. Opinium Research is a member of the British Polling Council and abides by its rules
8 Consumer Intelligence research *based on the average of top 5 cheapest car insurance premiums Jan – Apr 2016 for both PCWs and key direct web prices. **based on the average of top 5 cheapest motor insurance premiums Jan – Apr 2016 for both PCWs and key direct web prices.
For further information, please contact:
Citigate Dewe Rogerson on 020 7638 9571 Jennifer Johnston-Watt, Natasha Virtue or Lorna Gilmour, Sainsbury’s Bank’s press office on 0131 286 0010
This press release is information for journalists only and is not intended to be a promotion to be acted upon by consumers.
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