Cost of driving has been increasing

According to new research from Prudential Car Insurance, high fuel costs and taxes have put pressure on the wallets of UK motorists. However, other Europeans aren't feeling the pinch quite as much and in many cases spend hundreds of pounds less than their British neighbours to own and run their cars.

The annual cost of running a car in the UK came to £4,997 - £642 more than in Spain, £513 more than in France, £465 more than in Italy and £320 more than in Germany. Researchers looked at every aspect of car ownership and expenditure and found that in almost all areas, British drivers fared the worst.

It all begins from the moment British motorists leave the dealer's forecourt. It can cost up to £2,000 more to buy a car in the UK than in other European countries. Meanwhile, up to £2,000 a year is lost in depreciation.

British drivers are also hit with significantly higher annual road tax than in some European countries. In Italy, drivers don't pay road tax at all and at £175 per year, the average Brit pays double that of the Germans and Spanish and around 25% more than the French. Fuel and annual service costs are also higher in the UK.

The research also reveals that many British drivers are unaware of the high cost of motoring in the UK. 56% of drivers severely underestimate the average £416 per month running costs, reporting spend to be under £100. This means that Brits are actually spending more than four times than what they think are on driving. 77% of drivers did, however, recognise that driving in the UK is more expensive than in other European countries.

With all of the above in mind the following 5-point plan may help you save money.

1. Shop around for car insurance to get the best deal and take advantage of online discounts.

2. Haggle with dealers to get the best trade-in and new or used car price and go armed with a car price guide.

3. Save fuel by reducing your speed, cutting down on use of the air-conditioning and removing any unnecessary weight from your vehicle.

4. Keep fines at bay by parking carefully and watching your speed.

5. Wash your car by hand to save pounds from your purse and potentially lose pounds from your waist.

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