Priced Out?: The Rising Costs of Your Car

Is the cost of driving out of control? With insurance premiums hitting record highs and repair costs going up by a third, add in rising tax and fuel costs and for many car ownership is becoming an unaffordable luxury. But what’s behind these unprecedented price hikes and what can the average motorist do about them?

Car insurance has never been higher and the average driver is estimated to be paying 63 percent more than they were in 2020. But experts suggest, it's not just the consumer whose costs have gone up. Jon Fong  from the Association of British Insurers told Tonight: 

“We understand that people don't want to pay more for their insurance premiums than they have to. But the fact of the matter is in these past several years, we've been facing increasing cost pressures across the board and in many cases, insurers are actually paying out more in claims than they're collecting in premiums”.

NimbleFins provided Tonight with exclusive analysis revealing that motorists are now shelling out an average of £3,834 annually to maintain and run their cars each year — a staggering increase of nearly 19% since 2020.

For some, the increased cost of driving has already stretched household budgets to the limit. Tonight met Amy in Leeds who has owned a car her whole adult life. But with costs mounting and a young family to support, Amy made the decision to sell her car after her insurance increased. But while it has caused relief financially, she also feels like she has lost her independence. Amy told Tonight:

“I have had to miss out on some opportunities because I simply cannot get there via public transport. For me, the biggest thing has been a feeling of loneliness. Literally feeling like I'm stranded here all week, aside from the school run and popping up there to pick up the kids, there is no other face to face human interaction. I definitely feel cut off.”

And Amy is not alone, research shows that not having access to a car can negatively impact your social life and employability, reducing your earnings potential by up to 25 percent, leaving some drivers in a seemingly impossible situation. So with access to a car having such substantial knock on effects, Tonight asks, is there enough being done to help keep costs down for drivers?

Potholes are a major bug bear for road users and it’s estimated that last year they caused a staggering £474 million pounds worth of damage to vehicles. Last year the RAC attended nearly 30,000 pothole-related breakdowns, which can include anything from a burst tyre to broken suspension. These incidents have gone up by more than a third since 2022 and this is at a time when the government says they are putting extra money into fixing the roads.

But one man has been leading the charge against the scourge of potholes for the last ten years. Mark Morrel aka Mr Pothole is deeply concerned over the state of the nation’s roads, dubbing it “Pothole Britain”. He believes the best way to combat potholes is to bring them to the attention of your local council: 

“The key thing that the public need to do is report pot holes. You may save someone's life, injury, damage and costs”.

A spokesperson from the Department for Transport told Tonight: 

“Local highway authorities are responsible for maintaining their road networks, but we are supporting them with the biggest ever increase in funding with £8.3bn of reallocated HS2 funding over the next 10 years - enough to resurface the equivalent of over 5,000 miles of roads across the country.

“This is on top of more than £5.5 billion already committed to local highways maintenance between 2020/21 – 2024/25, and will help make journeys smoother and safer for all.” 

Councils are responsible for keeping the roads safe but getting councils to act on potholes isn’t always straight forward. One tech company in Horsham has developed a smartphone app that can track and map potholes.

Mike Monkford from Stan the App told Tonight:

“It's about empowering, members of the public to look at their local roads … and say to their local council … Please do something about it.” 

Mike wants to work with local authorities and licence the data collected by the app.  He hopes by showing local authorities the extent of the problems it will keep them accountable. 

In the six weeks since the apps launch, 3 percent of the country has been mapped, but Mike told Tonight, he has a mixed response to the app from local authorities:

“To be honest, it, it all comes down to this article 58 which essentially says if you know about a pothole, you are liable for it.”.

Local councils can reject claims for damage using section 58 of the highway code. It can be used as a defence if they can prove they’ve followed their road inspection procedures and can show they did not know about the potholes in question.

A spokesperson from the Local Government Association told Tonight:

“Councils already invite road users to report highways defects and any new ways that support this and make this easier is helpful. Whilst this information will help councils in their planning of road repairs, limited resources and a £16.3 billion backlog of repairs will mean councils will need to continue to prioritise according to local circumstances, and want to focus on preventive measures where they can.”

For most people one cost that can’t be avoided is fuel. In 2023 retailers were caught out not passing on reductions in oil prices quickly enough to the consumer, meaning drivers were overcharged approximately 900 million pounds at the pumps. Since then many retailers are sharing their prices more openly, but some drivers still may be paying too much. 

Tonight met up with Rod Dennis from RAC and found within relatively short distances the cost of fuel can be drastically different. Rod told Tonight how doing a bit of research could “be the difference of £15 a tank” which over the year can significantly decrease overall costs.

Monthly car costs can stretch even the most carefully planned budgets, but an unexpected bill from the garage can be the tipping point for many drivers. On average motorists are paying 31 percent more to get their cars fixed than four years ago. 

Living in the Cotswolds, Tonight met dad-of-two Ian, who has been feeling the pinch from pricey car repairs: “No one has two grand just lying around. So it's gotta come from somewhere”.

Andy Turbefield, Head of Quality at Halford’s told Tonight the increase in repair costs is largely down to the rising costs of parts caused by supply chain issues and the increasing complexity of cars. Concerning research conducted by Halfords also suggests increased costs are causing car owners to skip essential maintenance. Head of Quality at Halfords, Andy Turbefield told Tonight: 

“Our own research shows that one in seven vehicles on the road today has either got illegal or dangerous tires and that's not insignificant. And that's reducing our safety on our roads today.”

With the price of parts rising, more criminals may also be being drawn to their illicit underground trade and vehicle theft overall has risen by 17 percent since the pandemic.

For the Greater Manchester Police (GMP) this averaged around 100 vehicle thefts per week since the start of 2024. Luke from the Force’s Stolen Vehicle Examination Unit told Tonight high value cars like Land Rovers are consistently targeted. 

Tonight met Tony in Wolverhampton who until last December, drove around in a top end Land Rover. He thinks he was specifically targeted and followed because of the car he drove. The theft has clearly left a lasting mark on him:

“I've lived up this road since I was 10 years old and that is the first car I've ever known to be stolen. And then you're always, I suppose in the back of your mind wondering whether they're gonna come back for the next one.”

But it's not just the high end luxury cars that are being targeted. Research reveals, Ford Fiestas are now the most stolen car in the UK. Greater Manchester Police’s stolen vehicle examiner Luke told Tonight that since Ford stopped their production the demand for parts has skyrocketed. Many are now being targeted and finding their way into chop shops where they are stripped down for parts and shipped off to other countries.

Tonight asked Luke what can the drivers do to avoid their car being stolen?: 

“If you've got a keyless car, you can get what's called the Faraday Pouch. They're only a couple of pounds online. You can get steering locks which are a visual deterrent.”

Driving is clearly vital to many people’s lives. And there are cost savings to be made, but these will only make a dint if current trends continue and some people may find themselves priced off the road altogether 

Ginny Buckley reports. Priced Out?: The Rising Costs of Your Car airs Thursday 4th April at 8:30pm on ITV1. It is then available on catch up on ITVX.