Inflation Affects Fuel and Insurance Premiums

Last Updated:
May 8, 2022
Author:
Brian Wallace

Ah the good ol’ days… Back in 1993, the cost of gas was just $1.07, but in 2022, we’ve seen massive price hikes, topping $4.29 this past March. Perhaps the worst and most concerning part of the increased cost is that it’s risen by almost 40% just since 2020. One wonders what kind of precedent this may be setting for the future.

Of course, it’s not every day that we are faced with a global pandemic, which is responsible for much of the inflation we’re experiencing. Nevertheless, it doesn’t look as though prices are going to drop nearly as rapidly as they rose, and the cost of owning a car can be a real struggle for many who are already finding it difficult to make ends meet.

Unfortunately, along with the price hike for fuel, comes an increase in insurance premiums as well. In fact, increased cost of fuel, increased cost of medical expenses, increased cost of vehicles, more frequent fuel theft, and labor shortages have all contributed to the insurance price hike.

It can be difficult to bring balance back into this situation when it comes to our budgets, but all is not lost. We can all do a few things to save money. Things such as reducing driving (which reduces premiums), not letting the car idle, not speeding, looking into insurance discounts, and shopping premiums every year, will all save money in the long run.

As long as inflation remains the number one concern for most Americans, we need to change our tactics and solve the budgetary issues in more creative ways.

the effect of inflation on gas and car insurance

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