Still waiting for the bus? For many consumers living in rural Ireland, a car is an essential purchase – but it’s not just the initial price you pay.

The continuous outgoing cost of car ownership impacts significantly on your annual budget, with the AA revealing that the price of running a family car now stands, on average, at €10,671.

While this is a hefty sum, the good news for consumers is that costs have fallen since 2016 by 1.6% or, in real money terms, €178.

With consumers still facing big insurance costs, you may be wondering how that could be.

It seems we have reached the peak in regards to motor insurance, and the CSO has found that the average cost of motor insurance has dropped by 10.2% compared to June 2016.

However, consumers may not have seen the impact of this on their car insurance bill yet.

Conor Faughnan, director of consumer affairs says: “Motorists renew their motor insurance once per year, so depending on when you pay you may not have seen any fall-off in the cost yet.

“The best we can say is that when we compared August of this year to August of last, the cost did not get any worse overall.”

Another key variable affecting the price we pay to maintain a car is fuel. It’s been a bit of a rollercoaster, but drops in recent months mean the cost of fuel has remained largely in line with the price in 2016, increasing very slightly, by 0.46%.

The average price of petrol, at 131.9c per litre in July, is up approximately 0.6c per litre on the price 12 months ago.

A typical motorist in a Band B car, doing an average annual mileage of 16,000km, will pay €1,561 for their year’s fuel, up from €1,554, with tax making up more than 60% of this figure.

“Oil prices have jumped around in the last 12 months, from highs of $57 around the turn of the year to lows of $43 a couple of months ago.

Right now, though, the oil price is just a bit higher than this time last year, which is offset by a stronger Euro – so our year-on-year comparison shows only a slight change.” CL

Have you seen any decrease in insurance costs this year? Or are you still paying big hikes? Send us your experience to cleahy@farmersjournal.ie.

>> Money savers

How to lower insurance costs

  • • If you have a spouse or partner (with a clean driving record), adding them to your insurance policy can net you a discount of up to 20%
  • • Always shop around. Even if you receive a renewal quote that seems competitive, call your current insurer and others to see if anyone can do better for you.
  • Probate timeline

    Probate is one of those things that you don’t really know much about until you encounter it, and then it becomes all-consuming. If you are selling a deceased family member’s house or buying an old house with character and potential, the probate process can be quite a headache – with four in 10 people stating they themselves or a family member experienced delays.

    According to Royal London, the probate process in Ireland is not as efficient as it is in the UK and other jurisdictions, and long waiting periods are having a negative financial impact on people trying to get the affairs of deceased family or relatives in order. As a result, the current administration time to process probate in Ireland is having a detrimental effect on the processing timeframe for its life assurance claimants.

    Greg Dyer, head of operations at Royal London says: “We know that there is a great deal of frustration out there when it comes to probate following the death of a loved one.

    “While 44% of our survey participants believe the legal process in relation to wills and inheritance takes more than six months, the reality is that it can take even longer. For example, our analysis of claims in 2016 found the average time to complete probate was 489 days (16 months).”

    “Based on our research, it’s clear the payment of death-related claims takes far longer in Ireland than in other countries due to delays in probate, particularly when compared with the UK, even though the legal system is comparable.”

    In England, obtaining a grant of probate takes an average of three to four weeks. In Ireland, the Law Society suggests a wait time of upwards of three months at least before a grant of probate can be issued, advising that it can take considerably longer in certain cases. CL

    Calls for EU regulation of car-hire industry charging rip-off excess fees

    Last month in Irish Country Living, we reported on car hire abroad: how to find the best deal and the precautions you should take while away. You can’t be too cautious, especially as more and more consumers are reporting that they have been sold excess cover at highly over-inflated prices and are being pressurised at the car-hire desk.

    On top of that, research conducted by the European Consumer Centre has highlighted that many tourists are being overcharged by car-hire companies for damages they are not responsible for.

    The Serious Fraud Office in the UK is currently planning to launch an enquiry into this overcharging, and calls are being made by motor companies, including Blue Insurance, which provides care-hire excess to people heading abroad, that the industry needs to be regulated.

    One of main areas that car-hire companies are ripping off consumers is through the “excess” charges, says Ciaran Mulligan of Blue Insurance. “Holidaymakers are being charged up to €25 a day at the rental desk abroad, and they should avoid these last-minute rip-off charges imposed by going online before they travel.” CL

  • 1. RESEARCH YOUR CAR-HIRE COMPANY: A quick online search will tell you if the car-hire company you are thinking of choosing has long queues at collection, is known for renting out poor-quality vehicles, and/or takes ages at drop off when you have a flight to catch.
  • 2. BEWARE HIDDEN CHARGES: Under 25? Been driving fully licensed for under four years? Well, you may have to pay a hefty extra for this. Shop around for companies that do not charge extra fees for the above.
  • 3. CHECK THE CONDITION OF THE CAR BEFORE AND AFTER YOU RETURN THE VEHICLE: Before you leave, have a good look around and make sure you get an employee of the rental company to confirm, in writing, any damage. Always take photos of the car, including any damage, before you leave the rental company. Similarly, do the same on return.
  • 4. PAY LOCAL CURRENCY: Insist on paying in the local currency. Car-hire companies in countries with a weaker economy will benefit greatly by having foreign customers pay in their own currency.
  • 5. COVER THE CAR-HIRE EXCESS INSURANCE BEFORE YOU GO: Don’t wait until you arrive at the car rental desk abroad to cover the excess. Buy cover before you fly.