2 - In the UK we have vehicle excise duty (annual car tax) which is related to the official figures for emissions of the vehicle. Generally larger engines produ

2 - In the UK we have vehicle excise duty (annual car tax) which is related to the official figures for emissions of the vehicle. Generally larger engines produce more emissions so there is a recurring cost to buying a larger car beyond the fuel itself. 3 - I heard a UK insurance industry analyst explaining that premiums are up year on year because the most fuel price sensitive customers (predominantly younger drivers and retirees) are driving more miles since prices fell last year, and these groups are also more accident prone.