With rising costs and tighter budgets, where you live now plays a bigger role than ever in how much your car truly costs you. Owning a car is no longer just about affording the vehicle itself. For many drivers, the real financial strain begins after the keys are in hand.
A new study by SDVH (Self Drive Vehicle Hire) has broken down the combined expenses of insurance, petrol, parking and MOT costs across UK cities, revealing exactly where drivers pay the most and where they get the best value for money. London stands far ahead as the most expensive place to own a car, with a total cost of £976.43.
Insurance alone averages £830.73, with parking at £9.20 and petrol at £136.50, further increasing the total. Congestion charges and dense urban living only intensify the financial pressure. Worcester (£838.02), Birmingham (£837.62), Coventry (£837.32), and Wolverhampton (£837.17) round out the bottom five. In each of these cities, insurance premiums of £704.02 dominate the total cost, outweighing otherwise moderate petrol and parking prices. The figures show clearly that insurance, more than petrol or parking, is now the single biggest factor driving up ownership costs in many urban areas.
Exeter takes the crown as the most affordable city, with total annual ownership costs of £613.85. Low insurance premiums at £479.20, reasonable petrol at £129.90 and parking at £4.75 keep it firmly in first place.
Plymouth (£615.20) and Bath (£616.24) round out the top 3, both benefiting from identical insurance costs, though Bath’s parking at £5.07 nudges it slightly higher. Bristol (£617.80, 4th) remains competitive despite parking climbing to £6.10 and petrol at £132.50.
Overall, the most affordable cities share one clear theme: lower insurance premiums and manageable parking charges. Even small differences of a few pounds per category quickly add up across the year, meaning drivers in these areas can save hundreds compared to those in higher-cost cities.
James McNally, motoring expert at SDVH, said: "It has become significantly more expensive to own a car in the UK over the past few years. Insurance premiums, in particular, have risen sharply, and for many drivers, that is now the single biggest cost of ownership.
“We regularly speak to customers who are surprised that insurance can cost more than their fuel over the course of a year. One of the most important things drivers should keep in mind is that location has a huge impact on price.
“Two people driving similar cars with similar records can pay very different premiums simply because of their postcode. Urban density, traffic levels and claim frequency all influence what insurers charge."
