The Downside of Cheaper Gas

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An Exxon Mobile Corp. Gas Station Ahead Of Earnings Figures
Daniel Acker/Bloomberg via Getty Images

By Dandan Zou

With gas rates down by more than $ 1 a gallon in the previous year, Americans jointly are investing $ 350 million a day less at the gas pump than they were a year back, states the American Vehicle Association. The drop in gas expenses, together with a more effective economy, has really triggered more driving– and more accidents. Which’s consisting of as much as higher insurance coverage expenditures.
Through the very first 7 months of 2015, U.S. vehicle drivers put a record 1.8 trillion miles on the roadway, states the Federal Highway Administration. The National Safety Council estimates a 10 percent increase in traffic casualties over that time compared with a year back.
If gas were still expensive, it might pay to reshop your policy and to drive carefully. When it is, motorists have the tendency to accelerate and brake slowly and keep a continuous speed to conserve gas, states Pennsylvania State University instructor Guangqing Chi, who has in fact studied the relationship. That’s an exceptional method to keep your record clean and your rates low.

 

DailyFinance.com