A new study highlights the impact of rising gas prices, car insurance premiums and maintenance costs on the way Americans get around.
The cost of gas, insurance and maintenance have made vehicle ownership more expensive than ever, and many Americans are changing their driving habits as a result. The LendingTree survey of 2,001 U.S. consumers ages 18 to 80 revealed that the vast majority of respondents have altered their habits over the past year due to transportation costs.
1 In 5 Drivers Said They Drove Less Over The Past Year
More specifically, 54% of drivers said they changed how much they drive. Compared to a year ago, 34% said they drive more, while 20% said they drive less. The top reasons cited for driving less include gas prices (64%), health or disability (24%), changes in household finances (20%), maintenance or repair costs (14%), and car insurance costs (14%).
Interestingly, the only demographics in which a majority said they were driving more than they were a year ago were 56% of Gen Zers (aged 18 to 29) and 52% of parents of children younger than 18. Those driving more said the top reasons were gas prices (54%), car insurance costs (28%) and a vehicle purchase (26%).
Additionally, 81% of respondents said they made changes to their driving habits over the past 12 months, with the most common including combining errands into fewer trips (38%), driving less overall (31%) and searching for cheaper gas before filling up (28%).
Some went even further by avoiding certain stores, restaurants or events because of the drive (19%), skipping or reducing recreational trips (17%) and delaying the purchase of another vehicle (15%).
Carpooling Is On The Rise
Chevrolet
Nearly 3 in 10 surveyed drivers have carpooled about once a week or more over the past year. Overall, 29% of them reported carpooling about once a week or more, with Gen Zers being the most likely to adopt this practice (52%). In addition, 51% of respondents said they would likely carpool if they regularly traveled to the same destination as someone outside their household.
That said, not everyone is open to carpooling. Overall, 39% of respondents said they never carpooled, with the most commonly cited reasons being preferring to drive alone (30%), not knowing anyone traveling to the same destination (23%) and having schedules that don’t align with someone else (22%).
“When gas prices and other transportation costs rise, many people respond by cutting unnecessary trips, while others drive more because life gives them little choice,” said Matt Schulz, LendingTree chief consumer finance analyst. “As much as people would love to be more flexible with their driving habits, sometimes it isn’t possible.”
The survey also shows to what extent households are being affected by rising monthly transportation costs. According to LendingTree, 30% of households spend less than $100 on transportation each month, 26% spend $100 to $249, and 20% spend $250 to $499. Another 14% spend $500 to $999, while 10% spend $1,000 or more per month on transportation.
