Whether venturing across the country or taking a journey somewhere local, many people who are planning road trips this summer have already factored in a variety of costs like gas, tolls, and accommodations into their travel budgets. However, there are other less obvious costs that could dent their wallets. This is especially true as inflation has impacted the cost of many expenses, including auto insurance, which has increased over 20% in the last year, according to the March 2024 Consumer Price Index.
While not all drivers are approaching the summer driving season the same way, according to a recent survey from Experian many are giving special consideration to their budgets and how to safeguard their finances from overspending. While the survey uncovers which costs are weighing on drivers the most, proactive planning and smart money moves can help road trippers avoid a financial flat tire this summer and beyond.
Expected Distance and Cost
The survey revealed that drivers plan to travel about 500 miles and spend more than $1,000 on their getaway. Only about 1 in 9 road trippers plan to drive more than 1,000 miles.
Like the variations in distance, drivers are also setting different road trip budgets for themselves. Even though the average budget is $1,007, about 1 in 9 drivers plan to spend $2,000 or more on their trip. It’s ok to spend a little more than expected while on vacation, but it’s important that vacationers be prepared in advance for the extra spending. Saving for a trip and setting aside emergency funds for surprise costs can go a long way to ensure road trippers don’t hit a financial pothole.
Getting There and Back
The survey data also showed that two-thirds plan to use their own car for road trips this summer, with 66% of road trippers saying that they plan to use their own car for at least a long weekend trip if not more. Meanwhile, 21% plan to rent a car for their summer drive.
For those renting a car, it’s a mixed bag of good and bad news. The good news is that rental car prices are falling from their higher pandemic-era costs since vehicles are no longer available to buy or rent. The bad news is demand is highest during the summer months, resulting in the tendency for rental car prices to peak, so it’s important to set an appropriate budget for this expense.
Drivers who plan to use their own cars should factor in the cost of maintenance and preparation for the drive, like getting an oil change or new tires. These expenses can be overlooked easily since they don’t fall under traditional vacation charges, but driving a car that is in good shape is important when hitting the road.
Anticipating the Top Costs
Factoring in all the road trip costs, it’s no surprise that gas, food, lodging, and insurance all add up and affect the budget’s bottom line. In alignment with this, most drivers surveyed say they expect gasoline and lodging to be the biggest expense on their road trip, while 47% say food will top their list of expenses. Focusing on gasoline prices, 76% of respondents said gas will be one of their top three expenses on their summer travels. Entertainment costs are another anticipated expense, with 18% of vacationers reporting it as one of their top three.
Car insurance costs also top the list, with 11% of respondents noting that it will be a top expense for them. Whether it comes to vacation travel or everyday transportation, insurance costs have become a pain point among motorists as insurance costs have climbed over the last few years.
Ways to Save
If roadtrippers need to lower costs to create a realistic summer road trip budget that will save them money all year long, they may want to consider comparing car insurance quotes online using Experian’s free insurance marketplace. The marketplace delivers multiple tailored rates from up to 40 top providers and can potentially help drivers find a better rate on their auto insurance policy.
While there are many expenses to consider when planning a road trip, vacationers should not overlook the cost of their auto insurance. Shopping around for insurance not only ensures drivers are getting the best coverage at the best price, but the savings can trickle down to other parts of their budget and free up extra cash that they can spend on their trips.
Drivers should also leave room in their budget for unexpected expenses. Whether it’s missing a reservation or getting a flat tire, these unplanned costs can put a dent in their finances if they don’t have a plan. Accounting for potential hiccups can save road trippers time, money and stress.
Regardless of their vacation plans, people should always be thinking about their credit health. A healthy credit score can impact the cost of auto insurance, the terms and rates of loans and the types of credit cards someone qualifies for. It’s always important to pay bills on time and in full and limit debt.
Whether embarking on a weeks-long trip or heading out for a weekend, financial planning is just as important as planning the logistics. Drivers should not overlook their auto insurance when searching for savings, and using the free tools and resources that are available can make saving easier than ever before.
Rod Griffin is the Senior Director of Consumer Education and Advocacy for Experian.
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