A new survey by the AA has found that it cost motorists an average of €10,593.60 to drive a family car for the last 12 months.

While fuel costs did fall in the last 12 months, these savings have almost been almost cancelled out by rises in insurance costs, meaning that the average cost of driving only fell by €17.60.

Average drivers saw 20% increases in their premiums during the year.

The rising cost of car insurance has led the Consumer Association of Ireland (CAI) to call on the Government to examine why price hikes have been so severe.

The average price of petrol at 145.3 cent per litre in July of this year was over 7% cheaper than it was 12 months ago.

“This is the biggest 1-year rise in Insurance prices in well over a decade.” says Conor Faughnan, Director of Consumer Affairs at The AA.

“It marks a big change in the market with insurers nervous about rising claims and about improving their reserves. All prices are rising but if you have had no claims or points in the year and have done nothing wrong it feels unfair.

"Unfortunately the trend is set to continue for the rest of the year and into 2016 in the AA’s view,” he continues.