As war in the Middle East pushes the national average for gas to around $4 a gallon, American drivers are feeling a significant pinch at the pump. Fuel costs have surged 37% since the start of the war, according to insurance-comparison marketplace Insurify.
Typically, higher gas prices lead consumers to cut back on how many miles they drive. Fewer miles driven translates to fewer accidents and lower car insurance premiums.
But a new report from Insurify shows any silver lining to drivers cutting back on miles is incredibly thin.
When gas prices rise 10%, people cut their driving by about 3% on average, according to the report. If Americans were to cut their total mileage by 10% this year, the average annual insurance premium would likely drop to $2,209.
While that’s slightly less than the current $2,222 average, the actual savings are negligible when compared to the soaring cost of gasoline.
