Car ownership becoming more expensive as gas, insurance costs rise
- AAA national gas average: $3.66 per gallon
- Annual car insurance average: $2,500 per plan
- Experts only expect those prices to increase during summer months
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(NewsNation) — It didn’t take long: Gas prices are rising again, with reports showing a 10-cent jump in costs since last month and a more than 60-cent increase since the start of the year.
That’s not the only cost Americans have to worry about heading into the summer months: Car insurance rates are also climbing, now costing over $2,000 annually.
The car costs are adding up for Americans, leaving their wallets lighter.
Gas prices on the rise
In Menlo Park, California, drivers could expect to spend up to $7.29 per gallon of regular gas. NBC reporter Scott Budman shared an image from a Chevron gas station over the weekend reflecting these costs.
Gas prices are averaging just over $5.40 per gallon throughout the state, according to GasBuddy.
Across the U.S., gas prices aren’t as high as in California but are still hovering around $3.66 per gallon, AAA reported. The national average was around $3.07 back in January, according to GasBuddy.
To make matters worse, travel experts say those prices are only expected to increase in the summer.
“They’re complaining constantly that they are spending so much on gasoline. And they are,” gas station owner Ernie Giannecchini told NewsNation. “They’re spending $70, $80, $100 when normally they’d be spending $30 or $40.”
Add to the list: Car insurance
Plus, Americans have the added costs of car insurance to add to their monthly auto fees. Drivers are now paying about $2,500 annually on car insurance, a 26% increase from last year, according to a new Bankrate report.
On top of inflation, where someone lives plays a large role in car insurance costs. The same report showed that weather and population are factors driving up costs. Distracted driving may also be playing a role.
“Now, with more and more technology that’s on cars, it’s a good thing that keeps us safer. But when those cars are in accidents, it costs a lot more money to repair them,” Scott Holeman, a spokesperson for the Insurance Information Institute, said.
Car insurance companies say they don’t anticipate prices going down any time soon. In fact, some believe it’s going to get worse with costs rising.
