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Family car costs fall due to drop in prices at the pumps

The cost of running a family car has fallen, largely due to lower fuel prices at the forecourts.

The average cost of running a family car fell to €10,386, according to the AA’s annual survey of motoring costs. This is down €207.26 on last year.

The biggest year-on-year change is due to an almost 10pc drop in the average cost of fuel. Average insurance costs have also fallen.

It comes as Liberty Insurance is investing €100m in a technology upgrade that will allow motorists to customise their insurance cover.

A collapse in global demand for oil due to the Covid-19 outbreak has seen pump prices fall in recent months, even though they have begun to creep up again lately with travel volumes increasing.

The average cost of a litre of petrol fell from 139.5c last year to 125.9c this month. Diesel prices fell from 129.9c to 117.3c.

The AA said there has been a drop in insurance prices, but it warned of high costs for non-standard risks and said promised insurance reform has still not been delivered.

AA director of consumer affairs Conor Faughnan said figures from the Central Statistics Office show the average cost of motor insurance dropped by 7.6pc in June compared with the same month last year.

But he said there are plenty of motorists whose insurance costs have not reduced.

This was particularly the case for returning emigrants and those with claims, or other non-standard risks.

The AA called on the Government and the insurance industry to ramp up insurance reform efforts.

Meanwhile, Liberty Insurance said it had designed a “unique” cloud-based technology that will effectively eliminate the need for it to rely on its complex legacy systems.

The IT upgrade offers customers a range of cover options as part of a basic package and then allows them to customise a product that most suits their needs, with a ­number of optional add-ons.

This will mean motorists deciding if they want to add or subtract the likes of windscreen breakage cover or breakdown assistance to ­policies.

Further product enhancements are planned for the new year, the company said.

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