'Outrageous': Rising gas, car insurance prices affect Michigan drivers
FOX 2 (WJBK) - The cost of owning a vehicle is becoming burdensome due to the increase in prices for gas and auto insurance – no matter what kind of car you drive.
When it comes to gas, Michiganders are paying 44 cents more than this time last month, according to AAA.
"I think they’re outrageous," said Warren Barker, a motorist. "Every day, they’re going up 5, 10, 15 cents a gallon."
Drivers are now paying an average of $3.65 per gallon for regular unleaded gas, a new high for 2024. A full 15-gallon tank of gas now costs $54.
"Then, when they’re supposed to be coming down, it takes forever to come down back to the regular price," Barker said.
FOX 2 Detroit has seen prices as high as $3.85 a gallon when paying with a credit card, and $3.75 when paying with cash, in the Southfield area.
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As for insurance premiums, things are not any better.
"I’m looking for new insurance. I don’t have a choice," Ron Spurlock said.
Spurlock is among many Michigan drivers seeing a big jump in monthly car insurance payments.
"(I'm) trying to find something cheaper, but at the same time I got to get the same coverage," Spurlock said. "It’s difficult to find that because everybody’s prices are about the same."
Stephan Crewdson with J.D. Power gave insight into why auto premiums are on the rise lately. J.D. Power is a data analytics, software, and consumer intelligence company best known for its automotive research.
"What’s been driving it is inflation," Crewdson said. "The same things that are driving up the cost of all the things we as consumers buy, is driving up the cost of insurers having to pay for claims – when a claim happens in an auto collision."
The increase in car insurance is something J.D. power has not seen in 30 years, Crewdson said. The reason? Auto parts have gone up in price and insurance companies have paid out higher settlements after crashes.
However, Crewdson said car insurance discounts are available; shoppers just have to ask about them.
"In a lot of these cases, the consumer has to let their insurer know that they qualify (for certain discounts)", he said.
Drivers can ask about lower insurance rates if they have taken a defensive driving course, are affiliated with a certain credit union, own a home, among other conditions.
Experts at J.D. Power said there could be some relief if inflation goes down over this year.