Gas prices dip as holiday season ends: AAA

If demand for gas remains low, motorists will likely see pump prices gradually decrease. 

The average price of gas dropped to $3.09 for the week ending January 4, a 3-cent drop from the week prior, according to the latest report from AAA. Pump prices on average are 15 cents less than a month ago and 17 cents less than a year ago. 

“January is a bit of blah time of year, and gas prices are in the doldrums as well,” AAA spokesperson Andrew Gross said. “Barring some unexpected shock to the global oil market, gas prices will likely shuffle up and down a few cents for a while.”

The West Texas Intermediate (WTI) – an oil price benchmark – increased by $2.32 to $72.70 at the close of Wednesday’s formal trading session. Gas demand fell from 9.17 to 7.95 million barrels per day last week, according to new data from the Energy Information Administration (EIA). 

Oil prices experienced a drop Wednesday after the Federal Reserve decided to pause on another interest rate hike. 

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Gas prices by state

Since last week, these 10 states have seen the largest decreases in their average gas prices, according to AAA. 

• Ohio (-14 cents)
• Indiana (-10 cents)
• Florida (-9 cents)
• Delaware (-8 cents)
• Michigan (-8 cents)
• Maryland (-7 cents)
• Wyoming (-7 cents)
• Tennessee (-6 cents)
• Idaho (-6 cents)
• Nebraska (-6 cents)

Fuel costs in ten states are above $3.25 a gallon. Here are the nation’s 10 least affordable markets.

• California ($4.71)
• Hawaii ($4.66)
• Washington ($4.11)
• Nevada ($3.94)
• Oregon ($3.76)
• Alaska ($3.62)
• Pennsylvania ($3.38)
• New York ($3.34)
• Arizona ($3.33)
• Vermont ($3.28)

If you are looking to reduce your car ownership costs you may find some savings by shopping for cheaper auto insurance premiums. Credible can help you compare multiple insurance quotes to find the best insurance rate for you.

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Auto insurance premiums and claims continue on an upward trajectory 

The auto industry is facing challenges, experiencing a continuous increase in premiums and claims, according to AM Best’s latest Market Segment Report. 

Insurers are experiencing a rise in auto insurance claims, primarily because drivers are returning to work. More people are now on the road compared to the height of the COVID-19 pandemic. The greater the number of drivers on the road, the higher the reported accidents, causing premiums to escalate. 

“Workplace patterns have changed post-pandemic with work-from-home arrangements, reducing the number of vehicles on the road,” AM Best Senior Industry Analyst Christopher Graham said in a press release. “However, driver inattentiveness and riskier driving habits have become more problematic in the last few years, and as a result, auto severity has worsened.”

Various factors can impact your car insurance rate – from your credit score to your driving habits. Shopping for the best provider is a time-tested way for drivers to help reduce their car insurance costs. Visit Credible to speak with a car insurance expert and get your questions answered.

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