Most motorists in Ireland underestimate how much they spend on owning and running their cars, with annual costs estimated at about €2,000 compared with an actual median cost of almost €3,000, according to a new study by the Economic and Social Research Institute.
The ESRI surveyed a nationally representative sample of more than 800 motorists across Ireland. It found that 72% of participants underestimated their annual motoring costs by a substantial amount.
Drivers were first asked to estimate how much they personally spent each year on owning and running their vehicle, excluding the purchase price and depreciation. The median estimate was €2,000, while the actual median cost was almost €3,000, around 50% higher.
Fuel represented the largest individual expense reported by motorists, with a median annual cost of €1,560. Other costs included insurance, motor tax, parking, tolls and vehicle maintenance.
The study also found major differences in running costs depending on the type of vehicle. Electric vehicle drivers reported annual costs of about €1,560, around half the amount reported by drivers of petrol and diesel cars.
Petrol car owners reported average annual running costs of €2,715, while diesel drivers faced the highest figure at €3,546.
Dr Shane Timmons, senior research officer at the ESRI and co-author of the study, said the findings showed that many motorists were unaware of the full cost of using their vehicles.
“When people think about motoring costs, they focus on the most visible expenses, especially fuel, but overlook other costs that add up over time,” he said.
Timmons said greater awareness of the complete cost of car ownership could help people make more informed decisions about their transport choices.
The findings come as motorists with penalty points also face the possibility of higher insurance premiums.
Data from the first half of 2026 analysed by car insurer OUTsurance showed that 387,028 drivers in Ireland held exactly three penalty points. The company said the figure represented the vast majority of motorists with penalty points.
More than 1,000 drivers had accumulated 12 points, the mandatory threshold for disqualification, while slightly more than 900 had 11 points and were one offence away from reaching the threshold.
Ian Kennedy, chief marketing officer at OUTsurance, said insurers consider several factors when calculating motor insurance premiums, with penalty points among the significant considerations.
He said insurers also consider the type of offence committed and the kind of driving licence held, rather than simply counting the number of points.
“As a general rule of thumb, the more points on your licence, the more you’re likely to pay,” Kennedy said.
The combined findings highlight the range of costs motorists can face beyond fuel, from insurance and taxation to maintenance and penalties that can affect future insurance premiums.
