For many UK households, running a car is the second largest monthly cost after housing. Fuel, insurance, tax, MOT, servicing, repairs, and parking can add up to several hundred pounds per month. Most of these costs cannot be eliminated if you need a car, but many can be meaningfully reduced with a targeted review.
Shop around for car insurance every year
Car insurance loyalty does not pay. Insurers routinely offer better rates to new customers than to existing ones. Using a comparison site at renewal — and then checking directly with a few providers not on the comparison sites — typically takes under an hour and can save a significant amount. Set a reminder a month before your renewal date.
Check whether telematics insurance would save you money
Telematics (or black box) policies use data about your driving to set your premium. For lower-mileage drivers or those who drive mainly during lower-risk hours, they can be considerably cheaper than standard policies. They are particularly common for younger drivers but are available to all age groups.
Use fuel price comparison tools
Petrol and diesel prices vary between stations, sometimes significantly. Websites and apps like Petrol Prices and Fuel Prices UK show live prices near you. Filling up at a supermarket petrol station, where available, is usually cheaper than a motorway or branded forecourt.
Keep your tyres at the right pressure
Under-inflated tyres increase fuel consumption. Checking and correcting tyre pressure costs nothing and takes a few minutes. The correct pressure for your car is listed in the owner's manual and often on a sticker inside the driver's door frame.
Compare servicing costs before booking
Main dealer servicing is typically the most expensive option. Independent garages and national chains often charge significantly less for the same work. Using a platform like Fixter or WhoCanFixMyCar lets you compare quotes. Once your car is out of warranty, you are not required to use a main dealer to maintain it.
How Ask Fin can help
The Leak Detector in Ask Fin can help you identify transport as a cost category and compare it to what you are spending elsewhere. My Monthly Budget helps you track car running costs as a separate line so they are visible rather than absorbed into general spending.
Secure payment via Stripe. Cancel anytime.
Ask Fin provides general financial guidance. It does not replace regulated financial advice.