A customer fills his vehicle with fuel at a gas station on April 13, 2026 in Miami, Florida. As the United States military blockades the Strait of Hormuz fuel prices rose above $100 dollars a barrel.
Joe Raedle | Getty Images
As war in the Middle East pushes the national average for gas to around $4 a gallon, American drivers are feeling a significant pinch at the pump. Fuel costs have surged 37% since the start of the war, according to insurance-comparison marketplace Insurify.
Typically, higher gas prices lead consumers to cut back on how many miles they drive. Fewer miles driven translates to fewer accidents and lower car insurance premiums.
But a new report from Insurify shows any silver lining to drivers cutting back on miles is incredibly thin.
When gas prices rise 10%, people cut their driving by about 3% on average, according to the report. If Americans were to cut their total mileage by 10% this year, the average annual insurance premium would likely drop to $2,209.
While that’s slightly less than the current $2,222 average, the actual savings are negligible when 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 still end up spending an extra $385 on gas in 2026, even after cutting back their miles, Insurify said.
Matt Brannon, a senior analyst at Insurify, told CNBC that the drop in insurance costs, roughly 1% annually, doesn’t move the needle for most consumers.
“Gas prices might overwhelm the savings they could get from insurance, especially if you’re driving a lot,” Brannon said.
Insurers, meanwhile, are seeing the benefits of consumer driving less and fewer accidents negated by the cost of auto parts, which has risen 4% year over year, according to Insurify.
Progressive, for example, warned in March that retaliatory tariffs and rising auto part costs could pressure profit margins and lead to rate hikes.