Scotland
£128,232,320
The cost of driving
Cars are an essential part of everyday life for many. But the cost of driving is increasing and more drivers are struggling to pay to run their cars.
We’ve explored the total cost of running a car, factoring in speeding fines, fuel costs, city centre parking permits and repair bills to name a few.
Why is the cost of driving increasing?
Our latest research of 2,000 UK drivers reveals that 3 in 5 (63%) have seen their personal motoring costs increase in the last year. And 1 in 5 (18%) have considered selling their car in the past 12 months.
Fuel is costing drivers collectively around £5.76 billion each year2 and car insurance a further £41.79 billion1. Combine this with expenses from MOTs, repairs and road tax3 and the total for these basic necessities alone is £66.17 billion4.
Our research reveals that...
63%
of UK drivers have seen their personal motoring costs increase in the last year
have considered selling their car to spend less
Key factors contributing to higher costs for drivers include:
Manufacturers are raising prices due to increased production costs and global supply chain disruptions. The market is shifting more towards electric vehicles too, which are typically more expensive than cars with a combustion engine.
Fuel prices are fluctuating at different rates around the country, and supermarkets are pricing competitively. Drivers remain desperate to find the cheapest pump near them, and it seems that these worries aren’t going away.
The cost of repairs and parts are increasing as vehicles are becoming more technologically advanced.
Insurers have increased their premiums following increased claims and to compensate for advanced car technologies which can make repairs more expensive.
Councils are encouraging greener driving habits to tackle congestion and environmental challenges which comes at an extra cost to some drivers.
How does where you live affect how much you pay?
Your postcode and driving routes significantly influence your car-related expenses. While a vehicle's purchase price and road tax are constants, other costs like fuel, insurance, tolls, and parking can fluctuate based on location.
Our analysis3 reveals that London-based driver's bear the brunt of these location-dependant costs. They face steeper charges for insurance, congestion, Ultra Low Emission Zones (ULEZ) and parking fees than their counterparts in other regions. The city's higher living standards also mean inflated fuel prices and higher labour rates for repairs.
At the opposite end of the spectrum drivers in the North East of England and Scotland pay the least to their councils for parking-related fees. Research also found that insurance costs are typically lower in Wales, Scotland and the North of England.
3 common costs that affect all drivers, but leave some paying more depending on where they live are:
- Fuel costs
- Car insurance costs
- Fines and other charges
Drivers in South East England pay the highest fuel costs
In 2022, drivers paid £5.76 billion2 in total to fill their tanks with petrol and diesel.
Fuel prices fluctuate based on many factors, from global oil prices, to taxation policies and supply chain costs. In 2022, fuel prices reached more than 200p-per-litre following global events.
A study of fuel prices found that between 2016 and 2022 the most expensive place to buy fuel was in Bedford, in the East of England.
In 2022, the most expensive place for a litre of petrol was South East England at an average of 177.9p. In contrast, the cheapest fuel was found in Northern Ireland, where drivers could fill up for just 168.9p per litre. That’s a 5.3% difference between the two areas.
It’s uncertain how prices might change in the future because of global events. Last year, the average price of fuel per litre was 175.34p, which was up from the previous year at 119.1p.
Total cost to drivers in 2022:
£5.76 billion2
average fuel costs
View fuel costs for all regions
| Region | Fuel cost (January to July 2023) |
|---|---|
| East Midlands | 147.32p |
| East of England | 147.6p |
| London | 148.24p |
| North East England | 144.5p |
| North West England | 145.3p |
| Northern Ireland | 142.13p |
| Scotland | 146.9p |
| South East England | 148.5p |
| South West England | 147.74p |
| Wales | 147.77p |
| Wales | 147p |
| Yorkshire and the Humber | 146.4p |
Car insurance prices have risen by 58%
The price you pay for your car insurance policy depends on your personal circumstances, including where you live.
Insurance companies use location alongside other personal factors to calculate your level of risk and how likely you are to make a claim. It’s this level of risk that's reflected in your price.
Typically, women get cheaper car insurance than men and younger drivers often have more expensive premiums.11
Our car insurance price index7 shows the cost of insurance premiums have risen by 58% in the last year. The cost of a comprehensive car policy is now £995 – an increase of £366 per year.
This surge is likely due to increased post-pandemic road usage, a corresponding rise in accidents, and inflation affecting repair costs.
Geography plays a key role in determining insurance premiums. In inner London, residents have an average annual premium of £1,607.
At the opposite end of the spectrum, Hebrides in Scotland boats the UK's lowest average at £577. Llandrindod Wells is close behind at £584.
Total cost to drivers:
£41.79 billion1
Scotland
£128,232,320
View car insurance prices for all regions
| Region | Average annual insurance premium |
|---|---|
| Inner London | £1,607 |
| Outer London | £1,291 |
| West Midlands | £1,224 |
| Manchester and Merseyside | £1,233 |
| Leeds and Sheffield | £1,127 |
| Northern Ireland | £1,051 |
| East Midlands | £982 |
| North West England | £940 |
| South Central | £952 |
| Midlands North | £916 |
| Scotland Central | £897 |
| North East | £848 |
| North | £844 |
| South East | £837 |
| East of England | £829 |
| South Wales | £778 |
| South | £774 |
| West | £738 |
| Scotland East and NE | £735 |
| Scotland - Highlands and Islands | £712 |
| Scottish Borders | £657 |
| Wales - Central and North | £652 |
| South West | £636 |
Fines and other charges cost motorists £637 million
Councils up and down the country earned £637 million5 from drivers last year (22/23). They might’ve earned this money from:
- Parking fees
- Permits
- Parking fines
- Penalties levied for driving in bus lanes or other areas where vehicles are banned
Motorists who break the law often have to pay if they're caught. Drivers might be issued fixed penalty notices, normally of around £100, for a variety of offences from speeding, to careless driving or jumping a red light.
Sometimes motorists have the chance to avoid a fine and the penalty points by opting for a driver education course. But these usually cost around £100.
Drivers taken to court for their driving offences can be fined much more with £2,500. This is the top penalty for exceeding the motorway 70mph limit.
In 2020/21, UK drivers had to pay:6
- £154 million in fines for motoring offences in court
- £81 million for driver training courses
- £58 million in fixed penalty notices
And as technology continues to advance, companies are developing more high-tech methods to catch dangerous drivers, such as AI speed cameras. So the number of drivers caught breaking driving and parking laws could increase.
Total cost to drivers in 2022/23: