How to Reduce Car Running Costs in the UK (2026): 14 Practical Ways
Key takeaways
- Fuel is usually the cost you can influence every week. At 174.1p per litre, 10,000 miles at 40 MPG costs about £1,979, so even a 5% improvement is worth about £99 (an illustration, not a promise)
- Insurers must offer existing customers a renewal price no higher than the equivalent new-customer price (FCA rule since 1 January 2022), but prices still differ between insurers, so compare at every renewal
- The Association of British Insurers puts the average motor premium at £566 in Q2 2026, so check what you pay against that
- Never skip safety-related maintenance to save money: tyres, brakes and MOT items cost far less to fix early
- The biggest saving of all is often the choice of car: depreciation, insurance group and fuel economy are decided when you buy
Running a car costs more than most drivers estimate, and a lot of it is fixed once you own the car. But fuel, insurance, servicing and the way you buy and keep a car all leave room for savings. These 14 tips are practical and don't need you to change your car or your lifestyle.
To see where your own money goes, start with the car running cost calculator, then work through the tips that apply to you.
Fuel costs: 5 ways to spend less at the pump
Illustration: a petrol car doing 40 MPG for 10,000 miles uses 250 gallons, about 1,136 litres. At 174.1p per litre (UK average, 14 October 2026) that is roughly £1,979. A 5% improvement in MPG would save about £99 and a 10% improvement about £198. Your own saving depends on your car, your journeys and your current habits.
1 Drive smoothly
This costs nothing. Accelerate gently, look well ahead so you can ease off early instead of braking hard, use the highest sensible gear, and avoid unnecessary idling. Harsh acceleration and braking burn more fuel for the same journey. The exact saving varies a lot by driver and car, so track your MPG over a few tanks before and after to see your own figure.
2 Keep your tyres correctly inflated
Under-inflated tyres increase rolling resistance, which costs fuel, and they wear faster and handle worse. Check pressures at least monthly, when the tyres are cold, using the figures in your handbook or on the door frame (they often differ for a fully loaded car). Also check tread: the legal minimum is 1.6mm across the central three-quarters of the tyre, and low-tread tyres are a safety and fine risk, not a saving. See GOV.UK: check your tyres are safe.
3 Buy fuel at the best price
Prices differ from one forecourt to the next, and motorway services are usually the most expensive. Check prices on a fuel price comparison app or site before you fill up, and look at supermarket fuel schemes if you already shop there. Discounts and conditions change, so read the current terms rather than assuming a figure. Never drive out of your way for a small saving: the extra miles can cost more than you save.
4 Carry less weight and drag
A heavier car uses more fuel, so take out anything you don't need. Roof boxes and racks add aerodynamic drag, especially at motorway speeds, so remove them when not in use. The effect depends on the car, but it is free to fix.
5 Use cruise control sensibly
On a steady, fairly flat motorway, cruise control helps you hold a constant speed and avoid the small speed changes that waste fuel. On hilly or busy roads it can be less efficient than driving smoothly yourself. Driving at the speed limit rather than above it also reduces fuel use, because air resistance rises quickly with speed.
Insurance: 4 ways to cut your premium
6 Compare quotes at every renewal
Since 1 January 2022 the FCA has required home and motor insurers to offer renewing customers a price no higher than they would pay as a new customer. That ended "price walking", but insurers still price differently, so the cheapest provider changes from year to year. Use price comparison sites and also check insurers that don't appear on them. According to the Association of British Insurers, the average motor premium was £566 in Q2 2026, so compare your renewal against that and against other quotes.
Tip: Start comparing a few weeks before your renewal date rather than on the last day. Check that each quote has the same cover, excess and mileage so you compare like with like.
7 Consider a higher voluntary excess
A higher voluntary excess (the part of a claim you agree to pay) can lower your premium. How much depends on your insurer, so compare quotes at different excess levels. Only do this if you could comfortably pay the total excess (compulsory plus voluntary) if you had to claim.
8 Check the cost of paying monthly
Paying monthly is often more expensive overall than paying annually, because the insurer charges interest on the instalments. Compare the total of the monthly payments with the annual price and look at the APR. If you can pay annually, it may be cheaper; if you can't, choosing the quote with the lowest total cost is better than the lowest monthly payment.
9 Ask whether telematics suits you
Telematics ("black box") policies price your premium on how you drive, using a device or app. They can work out cheaper for careful drivers, especially young drivers who face high standard premiums, but they come with conditions such as night-time driving limits, and poor scores can cost you. Get a standard quote and a telematics quote and compare.
Servicing and maintenance: 3 ways to save
10 Get quotes from independent garages
Labour rates and service prices vary a lot between garages. Once your car is out of warranty, compare quotes for the same work from a main dealer and one or two independent garages. Choose a garage that is open about its prices and parts, and ask for a written quote. In the UK, using a non-franchised garage to service your car does not by itself void a manufacturer warranty, as long as the work follows the manufacturer's schedule and uses suitable parts.
11 Service on time
Skipping a service saves money now but can cost more later through wear and breakdowns. A full service history also helps when you sell the car. Follow the schedule in your handbook, and fix MOT advisories and warning lights promptly.
12 Do simple jobs yourself
Wiper blades, some bulbs and the cabin filter are jobs many people can do themselves with the right part and the handbook or a manufacturer-specific video. Don't touch anything safety-critical (brakes, steering, airbags) unless you are competent, and keep receipts for parts.
Road tax and depreciation: 2 strategic savings
13 Check the road tax before you buy
How a car is taxed depends on when it was registered. Cars registered on or after 1 April 2017 pay a flat standard rate after the first year (£200 for 12 months in 2026/27), with an extra £440 a year for five years on cars with a list price over £40,000 (£50,000 for electric). Older cars are taxed by CO2 band, so the difference between a low and a high band can be significant every year. The first-year rate, which is based on CO2, can also be large on a new car. Use the road tax calculator to see the figure for a specific car before you commit.
14 Think about depreciation when choosing a car
For most owners, the fall in a car's value is the biggest single cost, and it is usually steepest in the first years. A nearly new or used car lets the first owner absorb much of that, so for the same budget you may get a better car. How much a particular model loses varies widely, so look at recent sale prices of the same model and age, not just the new price. Buy a car you can afford to insure, fuel and service as well as buy.
🚗 See your total annual running cost
Enter your fuel, insurance, servicing and mileage to get your own annual figure.
Use the Running Cost Calculator →Frequently asked questions
What is the biggest cost of running a car in the UK?
It depends on the car and the owner. For many people, depreciation or finance payments are the largest cost, followed by fuel and insurance. Fuel and servicing rise with mileage, while insurance, road tax and depreciation are paid whether you drive much or not. The running cost calculator shows the split for your own figures.
How much can I save by improving my driving style?
It varies by driver and car. As an illustration, a petrol car doing 40 MPG over 10,000 miles at 174.1p per litre costs about £1,979 in fuel, so a 5% improvement in MPG saves about £99 and a 10% improvement about £198. Measure your own MPG over several tanks to see what you gain.
Does tyre pressure affect fuel economy?
Yes. Under-inflated tyres have more rolling resistance, so the engine works harder, and they wear faster and can be unsafe. Check pressures monthly when the tyres are cold, using the figures in your handbook.
Is it worth comparing car insurance every year?
Yes. Since 1 January 2022 insurers must offer existing customers a renewal price no higher than the equivalent new-customer price, but different insurers still price the same driver differently. Compare the same cover and excess, and check the total cost of paying monthly against paying annually.
Also useful
Sources
- FCA — FCA confirms measures to protect customers from the loyalty penalty in home and motor insurance markets
- Association of British Insurers — Motor insurance Q2 2026 (average premium £566)
- GOV.UK — Vehicle tax rate tables
- GOV.UK — Check your tyres are safe
- Fuel Finder UK — UK Fuel Price Index (14 October 2026)
Prakash
Prakash is the founder and editor of UK Driving Tools. He maintains the site's calculators and guides and checks the rates and rules they use against official UK sources, such as GOV.UK, the DVLA, HMRC and Transport for London, before publishing.
Pages are drafted with the help of AI tools and then checked by the editor. He isn't a lawyer, accountant or UK-qualified adviser, so every page lists its sources and states what its calculator can't tell you. Nothing on this site is legal or financial advice.
Pages on UK Driving Tools are drafted with the help of AI tools. Before publishing, the figures and rules on each page are checked against the official source named on the page, and calculator examples are tested against the working formula. Pages are updated when rates or rules change. Our Editorial Policy explains the full process, including how to report a mistake.
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