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How to reduce auto insurance payments after gas prices hit all-time high

01.07.2022

In June, gas prices hit a new all-time high, surpassing $5 per gallon for the first time since AAA began tracking prices in 2000.

The cost of a barrel of oil hit more than $120 in June, nearly double the price from August last year, according to AAA. Oil demand continued to surpass the tight global supply, as a result of this.

As the summer driving season has gone up, gasoline in the U.S. has become more in demand. The national average gas price in June increased to $5.01, an all-time high, up 58 cents from May.

The demand we are seeing shows that high prices have not really deter drivers, according to AAA spokeswoman Andrew Gross. If prices stay above $5, we may see people change their daily driving habits or lifestyle, but it hasn't happened yet. If you want to reduce your auto insurance payments due to rising gas prices, you can take steps to reduce your auto insurance payments. You can compare multiple providers and find your personalized rate in minutes without affecting your credit score, using a marketplace like Credible.

Demand for gas continued to grow despite rising prices, according to AAA. As drivers head into the summer months, it's reached 9.2 million barrels per day.

The rise in prices at the pump is due to the dynamic between decreased supply and increased demand, according to AAA. This means that the price of gas will likely stay elevated for the near future due to increasing crude oil prices. One company is doing what it can to lower the cost of another product, donuts, after gas prices go up. National donut chain Krispy Kreme has announced that every Wednesday through the summer it will lower the cost of a dozen glazed donuts to the national average price for a gallon of gas that AAA reports each Monday. The typical cost for a dozen glazed donuts is about $12.

If you are struggling with rising gas prices and want to save money, you may consider lowering your auto insurance premium. You can compare multiple car insurance providers at once, and choose the one with the best rate for you.

How can I save on auto costs?

There are some steps drivers can take to reduce their auto expenses as the cost of driving continues to rise. The drivers can save money by buying a used car, rather than a new one, and not just the initial cost of the vehicle. They could potentially save on the insurance price. Auto insurance premiums decrease by about 3% for each year the vehicle ages, according to a study.

A clean driving record with no accidents or tickets will help drivers get better average car insurance rates. While violations will fall off a driver's record after a certain period of time, they can take proactive steps to help clear it, such as taking a driver's safety course.

Different insurance companies will give discounts for different reasons. For example, teen drivers can get a discount if they have good grades. If you combine your auto insurance type with another insurance type, such as homeowners insurance, you can get better rates.

If you are shopping for car insurance, you can compare quotes from multiple companies at once and find the best deal.

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