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Driving costs steady despite higher gas
Lower insurance premiums, taxes and costs for other services offset rising pump prices: AAA.
March 21, 2005: 2:46 PM EST

NEW YORK (CNN/Money) - The average cost of driving in the United States is nearly unchanged from one year ago despite higher costs for gasoline, a travel group said Monday.

The AAA estimated it will cost an average of 56.1 cents a mile, or $8,410 a year, to own and operate a new passenger car in 2005, compared to $56.2 cents a mile, or $8,431 annually, in 2004.

The group said offsetting higher gasoline costs were reductions in the annual average cost of insurance, licensing, registration and taxes, as well as tires and maintenance.

The cost of gasoline is estimated to average 8.5 cents a mile or $1,285 this year, the AAA said, versus 6.5 cents a mile or $975 last year.

In a separate report released on Monday, the AAA said gasoline prices rose to another record high despite crude prices falling from all-time peaks.

The average price of a gallon of regular unleaded gas rose to $2.072, according to AAA, the largest U.S. motorist organization, formerly known as the American Automobile Association.

The group's study on driving costs calculates the average expenses associated with owning and operating a vehicle for five years and 75,000 miles.

Expenses include depreciation, insurance, fuel, tires, license, registration and taxes, vehicle financing, routine maintenance and repair.  Top of page

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