We understand that car insurance
isn’t top of mind for most of us throughout the year – except of course for the most accident prone amongst us. In fact it’s only when the renewal notice arrives that we take a little time to think about getting a few car insurance quotes in order to benchmark – and hopefully improve – prices.
But we fill up our cars at the pumps regularly and this gives us a painful reminder of the high costs of motoring. Based on average fuel cost, mpg and annual mileage figures, most of us spend about £1,700 a year on petrol or diesel – well in excess of the average annual car insurance premium.
But whilst we all now tend to shop around to get better car insurance quotes
, how many of us take the time to source the best fuel prices? Research this week from the AA highlights the massive differences in pricing at the pumps, even in the same locality. They refer to this as being a postcode lottery for motorists, with variances of nearly 5p a litre being highlighted in some regions. Applying this to the average annual fuel cost could result in a potential saving of over £75. Most of us would be more than happy to make that kind of saving on our car insurance premiums! And canny drivers can use fuel price check websites (such as petrolprices.com) to help them find the best deals, or use grocery retailer vouchers to drive down prices even more.
Why is there such a disparity in pricing? The AA highlights a lack of transparency in the setting and maintenance of fuel prices. This enables fuel retailers to determine where and when to pass on cuts or increases in wholesale fuel prices, leaving many motorists out of pocket.
So when you’re next filling up with fuel, watching your money disappearing rapidly as the wheels on the pump go round and round at an alarming rate, think about whether there might be a better deal just around the corner. Most of us are creatures of habit when it comes to choosing where to fill up. Make sure your habit isn’t an overly expensive one!