According to a major breakdown cover company, the cost of running a car has increased by roughly £540 over the past twelve months, hitting thirty million drivers across the UK.

The average car now costs almost £5,540 a year to run (or over £15 a day), compared to £5,000 a year ago. This includes an allowance for the loss in the vehicles value.

Of course, this news means yet more misery for Britain's motorists, whose household budgets have already been stretched by rising Council Tax, soaring domestic energy bills and higher mortgage rates. So, to turn those frowns upside down, here is a list of money-saving ideas for motorists.

Depreciation is the tendency for (a vehicle's) value to fall over time. Depreciation varies across makes and models, but tends to be greatest for vehicles in the 'Family Car' category, because of a plentiful supply of used cars in this sector. On the other hand, prestige German marques, compact executive cars and 4x4s hold their values best.

Hence, it's worth checking the residual values of used cars (seven million change hands each year) in order to get an idea of how much you can expect to lose over, say, the first three years of ownership.

Whether you're looking for a new or used car, it pays to shop around. Haggling for discounts also makes sense, because the price you see is nothing but the maximum price, not the price you should stump up.

Although all motorists must have some form of car insurance (third-party cover is the minimum legal requirement), millions of us routinely overpay for this cover. To prune up to £400 a year from your premium, shop around for a better deal. And whatever you do, don’t be enticed by payment protection insurance! (A huge rip-off). Frequently, this covers employees only so may be no use to a self-employed individual

Extended warranties are also a big con. Three in five new cars are sold with extra warranties which lengthen the manufacturers' usual guarantee, but these may prove extremely poor value for money.

GAP insurance: if your car is written off after an accident or theft, your motor insurer's pay-out may not be large enough to settle your finance agreement in full. In essence, GAP insurance covers the difference. Consumers find this product difficult to understand, so dealers charge the earth for it and trouser huge commissions. Avoid!