Since 2007, the average cost of car insurance has increased by 23 per cent, a market analysis firm discovered.

The annual cost of running a car has also increased over 11 per cent from £2,100 to £2,338, in the past two years.

Car insurance policies have also increased with the standard premium rising to £551.74.

Despite this, inflation has caused the cost of servicing to decrease slightly. However, the other costs involved in running a car have ballooned in the past few years, with the tax going up by eight per cent since 2008 and twenty-two per cent since 2007.

Although fuel prices have slightly fallen by 1.22 per cent from the peak last year, they are up by 7.56 per cent on 2 years ago, costing £1,266.17 a year on an average per driver.

Commenting on the increasing cost for running a car, a spokesperson from a leading car insurance firm said that while certain costs have fallen since last year, compared to 2007, the overall cost of motoring is still increasing.

Along with the motoring cost, insurance premiums and road taxes are both on the rise. By shopping around for car servicing and car insurance, the cost of driving a car can be kept in check, experts have advised.