How Inflation is Driving Up Gas and Car Insurance Prices
In March 2022, the average price of a gallon of gas was $4.29. That’s 40% higher than it was 2 years ago. At the same time, car insurance premiums have risen from 5% to 15%, costing Americans over $1500 more per year. As if that wasn’t bad enough, America’s largest auto insurers are filing for rate increases this year. When asked why, businesses cited increased car prices, rising medical costs, and higher fuel theft. What’s the common denominator behind all these woes? Inflation.
Inflation makes it more expensive than ever to own a car. Unfortunately, car ownership isn’t optional for most people in America. So how do consumers handle it? Some try switching to cheaper gas, to the peril of their vehicle. Others might try foregoing insurance, an illegal move in 48 states. Hybrid or electric vehicles can be great investments for the future, but supply chain shortages make them hard to grab now.
Instead, Americans should cut unnecessary trips out of their routine. Driving 10% less saves $275 per year. People who drive less also pay less in car insurance. Other ways to save gas while driving are slower braking, less idling at drive-thrus, and no speeding.