In the time of rising oil prices, how does one cope with the runaway costs associated with daily transportation? According to the American Automobile Association (AAA), the average cost of driving and owning an auto using 15,000 miles annually is about $7,830. However, SUVs cost even more and burn approximately $9,990 per annum. Please not that the costs of ownership that AAA incorporated into their analysis include gas, maintenance, insurance, tax depreciation, registration, financing and more.
Herein, as costs keep rising, there are a few things that are within your control. Here are some costs saving measures for your daily commute:
1. Buy a Gas Efficient Car
At the moment, hybrid or alternative fuel vehicles have not reached the stage where they can match the cost effectiveness of traditionally fuelled vehicles. At the present moment, the current stock of hybrid vehicles do not offer significant savings in terms of gas expenditures and collective costs of ownership to merit a switch from a purely financial point of view. However, hybrids are a better alternative from an environmental point of view.
Since we are only discussing economics of buying a car, you can also find a traditional alternative that can provide close to, if not the same, gas mileage as a hybrid. A car with good gas mileage can save you thousands of dollars over the life of ownership.
2. Buy an Affordable Used Car
Buy a used car that is no more than three years old. Make sure the car is in good shape and have it checked out by an independent mechanic. A car that is three years or younger is most likely still under warranty and, depending on the type of car, it may worth getting an extended warranty.
A new car loses most of its value in the first three years. So it is best to buy a used car still under factory warranty that is at maximum three years old.
3. Get Low Car Insurance Quotes
Use a site like SecureInsuranceQuates.com to get competitive low auto insurance rates. Car insurance rates are different for each car owner and the type of car being driven, so don’t presume that your insurance rate will match that of your family or friend’s. Go online to obtain an attractive yet personalized insurance quote that meets all of your needs.
Shopping around online for the best auto insurance rate quote can potentially save you hundreds of dollars each month.
4. Collision & Comprehensive Coverage
If your car is not worth a whole, let’s say approximately less than $2,000, do you really need to pay extra for collision and comprehensive coverage? If you drop the coverage you may be able to cut your auto insurance premium by one-third.
5. Raise Your Deductible
If you can afford to increase your car insurance out-of-pocket deductible from $250 or $500 to $1,000, you can on save an average of 15% or more on your auto insurance.
6. Car Pool
Lest we forget, the omnipresent Car Pool. The car pool is the topic that never goes away when it comes to saving money on gas and helping the environment. Cut your commuting gas costs in half by sharing a ride.