A customer fills up his vehicle with fuel at a gas station on April 13, 2026 in Miami, Florida. As the US military blocked the Strait of Hormuz, fuel prices rose above $100 per barrel.
Joe Raedle | Getty Images
As war in the Middle East pushes the national gasoline average to around $4 a gallon, American drivers are feeling a significant pinch at the pump. Fuel prices have increased by 37% since the start of the warAAccording to insurance comparison marketplace Insurify.
Generally, higher gasoline prices cause consumers to reduce the number of miles they drive. Fewer miles driven translate into fewer accidents and lower car insurance premiums.
But a new report from Insurify shows that the upside for drivers reducing miles is incredibly slim.
When gas prices rise 10%, people reduce their driving by about 3% on average, the report found. If Americans reduced their total mileage by 10% this year, the average annual insurance premium would likely drop to $2,209.
While that’s slightly lower than the current average of $2,222, the actual savings are negligible compared to the soaring cost of gasoline.
Reducing driving by 10% would save the average person just $27 a year on insurance. That same person would end up spending $385 more on gas in 2026, even after reducing their miles, Insurify said.
Matt Brannon, senior analyst at Insurify, told CNBC that falling insurance costs, about 1% per year, aren’t moving the needle for most consumers.
“Gasoline prices could outstrip the savings they could get from insurance, especially if you drive a lot,” Brannon said.
Insurers, meanwhile, are finding that the benefits of consumers driving in fewer accidents are being offset by the cost of auto parts, which has increased 4% year over year, according to Insurify.
Progressivefor example, warned in March that retaliatory tariffs and rising auto parts costs could put pressure on profit margins and lead to rate hikes.