The Savings of EV Drivers Increase As Gas Prices Continue to Rise
The more expensive gas gets, the more money you could be potentially saving by switching to a hybrid or fully-electric car.
Written by Allison Stone
Reviewed by Kathleen Flear
Driving and
owning a car
right now is more expensive than ever. Americans have been dealing with high gas prices
for months with no end in sight while oil companies rake in record profits. Some drivers, like this
Forbes
contributor, look to electric cars as the most obvious alternative to shelling out at the gas pump, but there are still plenty of holdouts to the idea of an EV transition. Read along with the car ownership experts at
Jerry
as we break down just now much you can save by driving an electric car. How much do EV drivers really save?
One of the biggest turnoffs to EV ownership is the high initial sticker price. It’s true that electric cars on average do cost more than their gas-powered counterparts (about $10,000 more according to
Kelley Blue Book
), but certain incentives like the $7,500 federal tax credit help to close that gap. As electric cars become more mainstream and charging infrastructure expands, that gap is likely to close even more.
While the full tax credit is no longer available for popular models from Tesla, General Motors, or Toyota, there are still plenty of affordable options on the market that qualify for the credit like the Nissan Leaf, the Kia EV6, or the Volkswagen ID.4.
EVs also benefit from having lower maintenance, fuel, and tax costs to offset the upfront price.
The U.S. Department of Energy even reported that after 15 years, electric cars generally cost less overall when you factor in the price, maintenance, financing, repairs, the federal tax break, and fuel costs.
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Calculating your potential savings with an EV
Another helpful tool from the U.S. Department of Energy is the Alternative Fuels Data Center has a useful Vehicle Cost Calculator
website
.Anecdotal evidence from Forbes claims that after switching to an EV, Senior Contributor Marshall Shepherd slashed his monthly fuel bill in half from $600 to $300.
In addition to fuel savings, some states and localities have additional perks for EV drivers that could save you in the long run. For example, Georgia residents that drive EVs are allowed to use toll lanes at no cost.
At the end of the day, whether or not an EV will truly save you money depends on your lifestyle, but for most people investing in one can be a huge money-saving lifestyle change.
MORE: California Can Set Emissions Standards Again
Are gas prices going to be high forever?
It doesn’t look like
gas prices will be going down
any time soon, so switching to an electric car could be a sound investment for someone looking to save money. Even switching to a hybrid car or a gas-powered car with great mileage can make a difference both in your personal finances and in reducing
greenhouse gas emissions
. If gas bills are starting to add up and you’re looking for ways to save, it’s time to reevaluate your car insurance plan. All you have to do is take 45 seconds to sign up with the Jerry app.
A licensed broker, Jerry helps users gather and compare quotes sourced from 55+ top providers like Progressive, Allstate, and Nationwide for free. Just download the app, answer a few questions, and review the list of competitive quotes Jerry sends straight to your phone.
Users save an average of over $800 a year on car insurance with Jerry—and it only takes a minute to sign up.
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