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Is the price of gas sending your finances into a tailspin? For many families across the country, the cost of operating a vehicle has become a tremendous financial burden. Unless you’re a voting member of OPEC, or majority shareholder of a major oil company, there isn’t a lot you can do to affect the cost of a gallon of gas. Fortunately, there are other things you can do NOW to effectively reduce the operating cost of your vehicle and keep a little more money in your wallet.
Save on Car Insurance
Shop Your Current Policy: Gas prices have skyrocketed over the last few years but you may not realize auto insurance rates have come down dramatically. If you haven’t shopped your current policy with other insurance carriers in the last year or two, you may be surprised at what you can save in premiums.
Drop Unnecessary Coverage: If your car is older, you may want to consider dropping comprehensive coverage on it. Money Magazine recommends dropping comprehensive coverage if your vehicle is worth less than 10 times what you are paying a year to insure it. Most states require (and for good reason) you to maintain liability insurance; however, dropping comprehensive can save you a few hundred dollars a year.
Raise Your Deductible: If you have an emergency fund in place (even a small one), you can save a substantial amount of money on your auto insurance by raising your deductible from $500 to $1000. A few years ago I calculated the difference in savings versus the risk and wrote about it in my article Is a Higher Automobile Insurance Deductible Right for You?
Improve Your Mileage:
Gas Saving Tips: Nothing against Eco-Snobs, but we all can’t afford to drive vehicles with the latest hybrid technology. There are many things you can do to improve the efficiency of your current automobile. Simply slowing down on the highway from 75mph to 65mph will improve your fuel efficiency by 15%. Find this and several other gas saving tips in my article Save $1.00 or More Per Gallon of Gas.
Consider Alternate Modes of Transportation: Let’s face it, we are a society on the go. Living in America and owning a car [practically] go hand in hand. As fuel prices continue to soar, so has the demand for inexpensive, fuel efficient scooters. You can find answers to any questions you may have about scooters at the Scootdawg Scooter Forum.
No one can be certain where the price of gas is heading. There is a general consensus that it will continue to climb, but others think the price is artificially high and will come down dramatically after the summer driving season is over. Until then, I hope you are able to moderate your vehicle operating costs with the tips above.
{ 2 comments… read them below or add one }
I can almost guarantee the price of gasoline will never, ever, go below what it is now. Once it went over 2 dollars I don’t think it ever went back in the ones again.
My girlfriend and I are training for a half marathon and we both agreed that if we complete it, we are going to buy motor scooters! I had one as a kid. They are a lot of fun and, you are right, could save you thousands a year on fuel.
Just watch out…you wouldn’t believe the people that pull out in front of you at night time. Completely oblivious to you even being there…
Great post!
Interestingly enough, I’ve been thinking a lot about car insurance. You brought up a really, really good point- if you haven’t shopped around for awhile, do it!
I hadn’t even thought of switching from Farmer’s Insurance until I just recently got married. Since researching different insurances, I can add my wife’s car and SAVE $30 a month doing it!
Shop around for more car insurance. It makes a big difference. You’ll be surprised what you find out. I’m living proof of that!