Motoring costs have risen by more than 10% in the past 12 months to push the average driver's bills beyond £5,000 per year for the first time.
Environmental pressures and the credit crunch are blamed for the leap in motoring costs.
Poor public transport is also blamed for not providing a viable alternative in a report published by Motor Insurance.
The report says the average driver is now paying out £5,540 for a year's motoring.
Fuel is the largest single factor in this cost, with depreciation second and finance payments third.
In the last five years, drivers have seen the price of petrol rise by 71%.
Motor Insurance managing director Paul Cosh said: "Britain's drivers are paying too much simply to use their cars for commuting and daily transport."
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