How To Save Money By Carpooling
How much money does carpooling save? That depends on how much carpooling you do and if you qualify for low mileage discounts on your auto insurance rates. Read this guide for more on the benefits of carpooling to school and work and how to save money by carpooling, including saving money on gas, taxis, and your auto insurance. If you're carpooling, you can find even cheaper car insurance by comparison shopping online. Enter your ZIP code below to get started for free.
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UPDATED: Nov 12, 2020
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Most people hate sitting in traffic, which is why most would find it unnerving to discover that the average American spends 40 hours each year stuck in it! To reduce traffic in this great nation, many experts think that the secret lies in carpooling.
In 2009 in the United States, 43.5% of all trips were carpools, but only 10% of commute trips were. Not only would an increase in carpooling mean fewer cars on American roads each day, but up to 1,600 pounds of greenhouse gasses could also be spared each year by carpooling just twice a week.
By picking up the habit of carpooling just once per week, Americans could cut traffic by up to 20%. They could also take advantage of the High Occupancy Vehicle (HOV) lanes found in many cities and effectively cut their commute in half. Apart from saving time and saving the environment, carpooling will help you save on the one thing we all can’t live without – Money.
Top 4 Ways Carpooling Helps You Save Money
These are the four major ways you will save money if you start carpooling:
1) Your Car Will Last Longer
Carpooling will keep you from driving as much as you normally would. If you drive your vehicle less, it will depreciate at a slower rate. The less wear and tear on your vehicle, the higher the resale value it will have if you eventually decide to sell it. By driving your car less frequently, you will also put fewer miles on it and increase its lifespan. Between the extra money you will gain when you sell your vehicle, and the money you will save by having fewer oil changes, getting fewer tire rotations, and other routine maintenance, you will have a bundle of extra cash at your disposal. In fact, South Florida Commuted Services estimates that the average carpool-er can save up to $600 each month just by starting to carpool!
2) You Won’t Spend As Much On Gas
It takes more than 13 million barrels of oil per day to fuel the 250 million cars driving around the United States. By deciding to carpool, not only will you save the environment by preventing pollution and unneeded oil drilling, but you will also save hundreds of dollars per year on fuel costs. The average American household spent $1,962 on gas in 2015. By carpooling as using less gas, you will be able to spend your money on other things, pay off your debts, and increase your savings!
3) You Will Save On Your Taxi Costs
Many new age taxi companies such as Uber and Lyft offer carpool options, which are significantly cheaper than regular fares. These services allow passengers to find a partner to share their ride with, therefore both lowering costs for riders and increasing earnings for drivers. The way it works is to basically have the riders split the costs of the trip. When you ride a taxi by yourself, you are responsible for 100% of the taxi fee. When you choose to use “UberPool” or “Lyft Line”, you only need to pay a fraction of that.
4) Your Car Insurance Premiums Will Decrease
Car insurance companies calculate your risk by looking at many different factors including your age, the car you drive, where you live, etc. One of the major things they will look at when calculating your premiums is the amount you drive. The more you drive, the greater the risk you will be involved in a car accident. After all, the more time you spend on the road, the more you expose yourself to getting into a collision.
Carpooling is a great way to save on your auto insurance because it cuts back on your annual mileage. If you begin carpooling, you might be able to qualify for low mileage discounts, which many auto insurance companies offer to policyholders who don’t drive as much. If you start carpooling with a group of people from work, for example, and decrease the days per week you drive from 7 to 3, chances are your insurance company will reward you.
To see how carpooling can affect your wallet, call up your insurer today to see what kind of discounts will be available.