DRIVERS are being hit in the pocket by the rising cost of motoring and the average cost of running a car is now £107.75 per week, according to RAC Insure’s latest Cost of Motoring Index.

As predicted, motorists have already started to feel the impact of recent rises in petrol prices. Those buying new cars will also be faced with higher loan repayment costs as interest rates have also risen over the last quarter.

And the cost of motoring could rise even further if predictions of more petrol price increases and rises in fuel taxation and interest rates prove accurate.

Nick Hall, RAC Insure managing director, said: “The rising cost of motoring is testing the mettle of British motorists. The monthly cost of running a car remains a quarter of all household income - and the continued threats of increases in petrol prices, interest rates, taxation and insurance premiums cannot be ignored.

“We have to acknowledge the idea that owning a car may soon be a luxury many cannot afford – and perhaps not be surprised that some break the law, such as driving uninsured, to cut their costs.”

Average fuel prices have already risen over the last quarter, with unleaded petrol now 5p a litre more expensive and diesel 4p than in March 2004.

The rise in interest rates has also increased finance costs for most of the cars in the Index, with an average rise of £94 (11 per cent) over the last quarter.

But Mr Hall added: “Despite the gloomy outlook, smart motorists can still make some significant savings. Cutting down on short journeys, walking the kids to school, walking to the newsagent and sometimes taking the train to work could mean reducing your annual motoring bill.”