Cost of running an average family car increases by €400 since 2005

MOTORING costs have increased by almost 4% over the past year, despite continuing reductions in insurance premiums, according to the latest AA annual survey.

It reveals that the cost of running an average family car rose by 3.7% to €10,904 — an increase of almost €400 on 2005 figures.

AA spokesperson, Conor Faughan, said surging fuel prices over the past 12 months had eroded any gains obtained from falling insurance costs which dropped by an average of 13.5%.