The Skyrocketing Prices of Gas and Car Insurance
Inflation at large in the U.S is on a steady rise, and the market which reflects this most clearly is gas and oil prices. Forces such as COVID-19, the sanctions on Russia, labor shortages, and general inflation have all led to an all time high in gas prices. Reaching $4.29 in March of 2022, a 39.7% increase from just 2020.
This has made it so it takes $51.87 to fill a car on average. Prices like these have led to gas inflation being 43% of Americans biggest worry of 2022. The price increases aren’t exclusive to just gas though, insurance has also seen a rise in the last few years. Premiums rising by 10% and several large companies filing to increase their rates by up to 12%
Americans in response may resort to cheaper gas, something that can cause permanent and expensive car damage. Others may look into electric or hybrid vehicles, an expensive and inaccessible option. Many are also just simply driving less, 80% of Americans saying that if gas prices reach $5 per gallon they will limit their driving even more.
It’s a hard time for any consumer in this period. Utilizing any coupons available, comparing car insurance rates, and limiting driving are the most realistic options, but more money being spent is nearly inevitable. Regardless, the smart and prepared consumer is projected to fare the economic storm far better than the unprepared.