Apr 12
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It costs a lot more to drive a car today than it did just last year. Not only is the cost of gas putting a huge dent in our pockets, but when you compare car insurance rates with last year some companies have increased their premiums. According to the Standard-Examiner’s article “Gas prices, insurance increases to make driving more expensive this summer,” author Kristy Eppley Rupon says that the average driver is paying $825 more this year to drive. The cost of purchasing your car has been increasing steadily as well, so drivers are being hit on all fronts.
Even though prices seem to be rising across the board, it still is not too expensive to drive compared to the alternatives. You should definitely be evaluating your car and driving habits though to see what you can do to make the most of your money. Many Americans are driving their cars longer instead of purchasing a new car when they thought they would. Finding cheap car insurance is still possible, but you have to do your research and make adjustments like increasing your deductible. There are even people moving so that their commute to work is shorter or joining carpools to save on gas and mileage.
While gas prices are seemingly out of control, they are not likely to go down below $3/gallon anytime soon based on the troubles in the Middle East, oil futures investing, and increased summer driving habits. The article says that the best way for us to get gas prices down is to consume less oil from foreign countries both by driving less and investing in alternative fuels. Insurers like Estrella Insurance are affected by high gas prices just like us and watch closely to see what changes can be made. If people decide to drive less or cut down the number of cars in their family, it could increase insurance costs for everyone as companies lose members. Regardless of why it costs more to drive now, everyone has to make personal changes and sacrifices to adjust to our new economic normal.
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