The Domino Effect of Gas Prices

Gas prices are on the rise.  The topic of gas prices in the media and public policy has been very relevant in the past few years.  Gas prices have increased 39.7% since 2020. 43% of Americans state that rising gas prices are their biggest concern for 2022.  Many consumers are noticing the domino effect of rising gas prices.  Higher gas prices have affected other car-related expenses, including increasing insurance premiums.  Inflation is affecting all aspects of life in the United States, including gas prices and car insurance.  In the past few years, gas prices have been affected by supply chain confusion, COVID-19, general inflation, labor shortages, and most recently, the Russia-Ukraine conflict. 

Consumers are trying to balance gas prices in many different ways.  Some may try switching to cheaper gas, which may cause powertrain damage, damaged transmission, and potential engine failure.  Some may try foregoing car insurance altogether.  Others may attempt to purchase hybrid or electric vehicles, which has become more difficult amid supply chain shortages.  To maximize your gas mileage without damaging your car, avoid behaviors that increase fuel use, including sudden stops, prolonged idling, and speeding.  Consider driving less, taking advantage of all discounts, and comparing car insurance quotes to protect your car insurance rates from changing gas prices as well. 

the effect of inflation on gas and car insurance

Author: Brandon Park