You may be wary of flying due to strikes and ash clouds, but beware the bill for a car

This means even staying at home will cost more. A trip to London from Edinburgh will set you back around 72 or 144 return on petrol alone, compared with 55 one way last year. Similarly, a round trip to Inverness will cost about 58, compared with 42 last year.

There may be cheaper options by booking in advance on the train, or bagging a bargain flight. But for a family, the car may still be the cheapest option.

But that's only half the bad news. If you fancy going further afield, you will pay even more in most European countries, with some exceptions such as Austria, Hungary, Ireland, Spain and Luxembourg. Diesel drivers fare much better, where much of Europe significantly undercuts our pump prices.

According to insurer Sheilas' Wheels, nearly 3.4 million motorists plan to take their car to Europe this summer, with 43 per cent driving to France, nearly a quarter to Belgium and a fifth to Germany.

When they cross the Channel, they will be hit by a currency double whammy from dollars and euros. In France and Italy, expect to pay around 122p per litre for unleaded petrol, (?1.39), in Germany 126p (?1.44) and in Norway 144p (13.03 krone).

Some regions are cheaper, with unleaded in Spain at 103p (?103.5) Portugal 117p (?1.34) and Switzerland 105p (1.72 Swiss francs). Cheapest of all is the United States, where petrol costs UK travellers just 49p per litre.

The picture reverses, though, when it comes to diesel, for which we typically pay 121p per litre. This compares with 111p in France, 107p in Germany, 95p in Spain and 93p in Portugal.

But these are not the only additional costs. You will need to make sure you have adequate insurance and breakdown cover, and there will be wear and tear on your car. There will also be ferry crossings and tolls to pay for.

The pound is slightly stronger against the euro than it was this time last year, buying about ?1.13, compared with last year when we nearly reached parity. Nevertheless, we have still seen a devaluation of the pound against the euro of more than a third compared with a few years ago, when one pound typically bought ?1.44.

The AA estimates a return trip from Edinburgh to Bordeaux is approximately 2,060 miles. Last year petrol costs alone for the round trip might have reached 288, but this year they will be nearer 363, filling up en route. Then there are tolls on top, which involve 5 on the M6 and 54.77 in France, up from 43 last year. Finally, you have to add in the ferry crossing.

If you take your car you have the convenience of transport at the resort, without the added expense of hiring a vehicle.

If, after doing the sums, you decide they add up and will drive to your holiday destination, the next thing to do is make sure you have adequate cover.

While EC law requires every insurer to provide minimum third-party cover automatically, your policy may not offer comprehensive protection. If you write off your car through your own fault, no-one will pick up the tab.

Every summer, insurance companies receive calls from motorists in tears when they discover they are not covered after totalling a top-end BMW or similar.

Some UK insurers will automatically provide comprehensive cover overseas, or in certain destinations. The AA, for example, provides up to 90 days' cover free of charge and there's no need to tell them when you are travelling.

But others may want to be notified, may charge an additional premium or offer no cover at all. It is always best to call your insurer first to make sure all eventualities are safeguarded.

Next you need to think about breakdown cover. There is nothing worse than breaking down in a strange country where you do not speak the language and have no idea where to find a good garage, let alone spare parts for a right-hand drive.

You may already be covered for driving abroad under your existing breakdown policy, or this cover might be included in a packaged bank account deal. If not, organisations such as Europ Assistance, Green Flag, the AA and RAC have links with overseas emergency rescue networks and should be able to solve all your problems with one quick phone call to English-speaking helplines which do all the work for you, instructing rescue services and liaising with garages.

Unlike UK cover, many European breakdown policies, such as those offered by the AA, Direct Line and Europ Assistance, will insure the car rather than the individual, so all drivers are covered. Read the small print carefully, as others may only protect one named driver.

Basic cover can be bought for under 30, with deluxe policy costs rising to well over 100. However, be careful: with some of the cheaper policies, you have to pay and then claim when you return. In other words, you are on your own and will not receive the back-up support available with the more comprehensive networks.

A decent-quality policy should give breakdown cover for the duration of the holiday, plus a week leading up to departure. That way, if the car breaks down before you set off, you should be given a replacement.

It should also offer roadside assistance and towing to a garage, and where the vehicle cannot be repaired, a car to continue your holiday or alternative accommodation.

Read both the cash and time limits carefully. Contracts should offer at least 60-minute roadside help. Also look at cash limits on car replacement. Replacement hire car cover can typically be anything from 750 to 1,500. Also check limits on overnight accommodation protection. Some offer only minimal nightly payments.

Tips to keep you on the right road

Plan thoroughly. Make sure your car is road worthy, up to the journey, and that you can adjust your headlights before leaving the UK. Plan your route in advance, and make sure you take everything with you necessary for the trip. A first-aid kit is useful, as is a spare pair of glasses.

Don't drink and drive. Limits are much lower on the continent, and penalties stringent.

Know the laws of the countries you are driving in. Countries have different rules on speeding, and what must be carried. Most countries require a red warning triangle, and some outlaw sat navs if they interfere with police signals.

Always carry identification, such as a passport, and other papers, including vehicle registration and insurance documents.

Don't rely on cash. Some toll booths and garages may not accept credit or debit cards. Keep some cash handy.