Motorists have been told that rise in the cost of fuel can be offset by cheaper car insurance premiums.

According to recent research from Sainsbury’s Bank found that the annual cost of running a car, has risen by 13.55 per cent in the last year, therefore car owners were advised to shop around for cheaper car insurance products to help counter affect the rise in fuel as well as road taxes.

Since 2007, the cost of fuel has risen by 19 per cent and road tax has increased by 12.5 per cent. Moreover the cost of servicing a car has increased as has, MOT, with the costs rising from 5.5 per cent and 9.3 per cent respectively.

Despite the rise in car insurance premiums, Sainsbury’s Bank was quick to point out that motor insurance providers endeavour to supply good value cover, which can ease the stain on policy holders and their wallets.

Further research from the used car website, glass.co.uk, found that 38 per cent of motorists are considering downgrading their current motors to smaller; cost-efficient models to save on costs maintain a car, which includes petrol, road tax and car insurance.

Adrian Rushmore, managing editor of glass.co.uk, said: "Household budgets are being squeezed ever-more tightly and consumers are looking for new ways to reduce their outgoings."