Inflation
and high gas prices
are making a serious dent in car-owners’
budgets—even just getting to and from work right now is going to cost you. According to a recent report from Axios
, annual commuting costs are up by an average of $757 or 35% from last year. As many Americans returned to in-person work over the past few months, the rising cost of commuting is adding to the debate between workers and employers on whether or not returning to the office is truly worth it.
Car ownership super app Jerry
is here to dive into the new study, explain what it means for you, and show you how to offset the rising cost of commuting by saving an average of over $800 a year on car insurance
. The real cost of commuting to work
On average, U.S. commuters will spend $657 on gas this year, which is a 58% increase from 2021. While gas prices and inflation are impacting nearly everyone, certain cities are being hit harder than others.
Pittsburgh (60.1%), Philadelphia (59.9%), Cincinnati (59.1%), Phoenix (58.1%), and Columbus (58.0%) top the list as the five cities with the highest percentage change in annual commuting cost from 2021 to 2022, but New York City has seen the highest dollar amount increase of $1,290 dollars.
In order to find the average cost of commuting, the office equipment review website Overheard on Conference Calls
used census and government survey data to find the average commute distance in miles (roundtrip) for 96 cities. They then multiplied that mileage by the cost of gas, while also factoring in expected annual maintenance costs.
Because of inflation, the average cost of car insurance and wear and tear are also up by about 8% this year and were factored into the final numbers.
What is being done about higher commute costs?
For those who recently returned to the office or who have no choice but to work in person, these high commute costs can put a real damper on workplace morale and are hurting employee retention rates.
To mitigate this, some workplaces have been offering perks like fuel stipends, gift cards, and more flexible work-from-home benefits.
Cities with public transportation systems, like New York City’s MTA, are avoiding fare hikes and launching publicity campaigns to encourage ridership. Other localities like cities in Silicon Valley are further investing in public transportation to help lessen the burden for individual commuters.
In Philadelphia, legislation that is en route to becoming law will require firms with 50 or more employees to offer commuter benefits.
MORE: Rising Gas Prices Mean Your Costco Membership Could Pay For Itself
The cost of your car insurance matters
When budgets are tight, don’t rule out your automotive insurance premiums as a place for potential savings.
For many people, the hassle of researching quotes and changing plans is enough to deter them from looking for a new car insurance plan—that’s where Jerry comes in.
A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and can even help you cancel your old policy. To ensure you always have the lowest rate, Jerry will even send you new quotes every time your policy comes up for renewal!
With Jerry, you’re always getting the best coverage at the best price. Sign up today.