America’s largest auto insurers are filing for rate increases in 2022. For their reasons, these companies cite instances of fuel theft, increased car prices, rising medical costs, and the price of gasoline, among others. What do all of these issues have in common with each other? Inflation.
At its highest point in 40 years, inflation is impacting all aspects of a consumer’s life in the United States. One of the places Americans notice it the most is at the pump. Gas prices averaged $4.29 in March 2022, almost a 40% increase since 2020. It costs over $50 to fill a regular car, and with insurance rates rising as well, car ownership is becoming more expensive with time.
Since car insurance is mandatory in most states, higher premiums aren’t escapable. Car owners looking to save money need to reduce gas consumption and take advantage of insurance discounts. Buying a more fuel efficient vehicle is difficult given current supply shortages, but drivers can make fewer sudden stops, avoid drive thrus, and reduce the number of unnecessary trips they take.
Driving defensively (and less often) can also give people discounts on their car insurance, doubling the benefits they receive for their efforts.