More About Oil Price And Car Insurance

Falling oil prices mean cheaper gas, and that makes most of us pretty happy. The average price for gas in the States is now $2.083 a gallon, nearly fifteen cents less than it was a year ago. Over time, though, cheap gas isn’t always a good thing. It can have a big impact on the economy, and, in turn, your wallet. You should know that gas price is also influencing car insurance premiums.  Read more about oil price and car insurance.  Visit our website to get car insurance quote for free.

@ car insuranceThere are a number of complicated political factors that explain the price drop, but at the core, it’s the basic chain of supply and demand.

There’s a little less demand for oil—people may be driving less, fuel-efficient cars are popular—but it’s mostly that there’s a ton of supply. There’s been a huge, global overproduction of oil, and that’s due to lots of different things that are happening all at once.

For most of us, cheap oil has been a welcome change. You’re not spending as much on gas, you’ve got extra cash to save, and hey—you can finally take a long road trip without destroying your budget.

In terms of the economy and the everyday consumer, this is the main benefit: more cash in your pocket while prices are low. According to AAA, consumers saved over $115 billion in gas last year.

Insurance premiums will soon increase if they have not already. People are driving more than ever which means a drastic increase in the frequency of accidents and therefore claims that companies have to pay. This means auto insurance companies have to increase premiums across the board to compensate for this trend. So actually save that extra money that you are getting from lower gas prices to be able to pay your premium when your renewal offer comes around.

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