SALT LAKE CITY — With summer in full swing, many are rethinking their road trip plans. While high gas prices are often the first deterrent that comes to mind, a new survey by Experian reveals that rising auto insurance premiums are also a significant factor influencing these decisions.
Gas Prices and Insurance Premiums: A Double Whammy
According to Experian’s survey, gas prices are the top reason people are reconsidering long summer drives. However, the cost of insurance is a growing concern. Trisha Madsen, a driver affected by rising premiums, shared her frustration earlier this year, stating, “They have doubled the premium on me.”
Over the past five years, the average auto insurance premium has increased by more than 20%. For some, like Madsen, the hike has been even steeper. “To double them is quite a deal!” she exclaimed.
Experian’s latest data indicates that 71% of drivers are now reconsidering their summer travel plans due to these escalating costs.
Adjusting Travel Plans
Rod Griffin, Experian’s Senior Director of Public Education and Advocacy, explained how the rising costs of road-tripping have forced many to reconsider their plans. “Their road trips are being adjusted,” Griffin noted. He pointed out that higher insurance premiums have become a critical consideration for many, whether due to the fear of an accident necessitating a claim or the need to lower insurance costs to balance out inflated gas prices and other travel expenses.
“They’re telling us they’re trying to find ways to save money this summer so that they can still have some road trip but do so that it doesn’t break the bank,” Griffin added.
Strategies to Mitigate Costs
Improving your credit score is one effective strategy to lower auto insurance premiums. Additionally, shopping around for better insurance rates can lead to significant savings. In response to these challenges, Experian recently launched a website designed to help consumers compare coverage and prices, offering a practical solution for those looking to cut costs.
Conclusion
As summer travel plans hang in the balance, the dual impact of high gas prices and rising insurance premiums is prompting many drivers to reassess their road trip plans. By taking proactive steps such as improving credit scores and comparing insurance rates, travelers can find ways to enjoy their summer without breaking the bank.