Survey: 88% of Americans Have Made Sacrifices to Deal With High Gas Prices; 24% Cut Back On Car Insurance

Americans remain frustrated with high living expenses, driven by high gas prices and inflation. Facing rising costs, Americans are driving less, delaying car repairs, and cutting back on car insurance coverage in 2026, according to a new Insurify financial survey of 1,500 Americans.

The cost of living has climbed faster than normal in recent years. Even before the start of the Iran war, Americans felt gripped by an affordability crisis.^[1] Since then, the war’s outbreak has disrupted supply chains, broadly raising costs. The inflation rate has increased from 2.4% to 3.5%, and the average gas price has risen to more than $4 per gallon.^{[2] [3]}

Insurify’s survey shows just how many Americans are feeling some financial pain. Nearly 3 in 5 Americans (57%) say that gas prices are unaffordable.

The data suggests that rising gas prices have made other costs feel more expensive as well. As of mid-2026, 42% of Americans say car insurance is unaffordable, up from 31% in January.

But gas and transportation costs are far from the only expenses causing concern for Americans. Broadly, consumers are worried about the ever-creeping cost of essentials. About 4 in 5 Americans (79%) are concerned about the cost of living, with 65% having a negative view of the economy.

Fears of inflation could lead to economic tightening later in the year. The Federal Reserve voted to keep interest rates steady at the end of July, though some members of the board favored a small rate hike to more aggressively combat inflation.^[4] And forecasts suggest one or two increases by the end of the year.^[5]

Economic issues, particularly inflation, are likely to play a role in the 2026 midterm elections. Heading into the second half of 2026, Insurify’s survey demonstrates how gas, insurance, and other living expenses are influencing Americans’ financial opinions and decisions.

Key findings

• Two in five Americans (42%) say car insurance is unaffordable, up from 31% at the start of 2026. Insurify projects the average cost of full-coverage car insurance will rise to $2,242 by the end of the year.

• Most Americans (57%) say gas is unaffordable, 55% say groceries are unaffordable, and 54% say car maintenance costs are unaffordable.

• Two-thirds of Americans with home insurance (65%) say their premiums increased in the past 12 months. Two in five Americans with home insurance (40%) say it is unaffordable, up from 29% at the start of 2026.

• Four in five Americans (79%) are concerned about the cost of living, including 73% of those who identify politically as Republican or right-leaning.

• To deal with higher gas costs, 69% of Americans have started driving less, 46% have delayed car maintenance, and 24% have reduced their car insurance coverage.

Most Americans say gas and car maintenance are unaffordable

The Iran war has eroded the global oil supply, creating ripple effects across economies and consumer outlooks. Many ships can no longer sail safely through the Strait of Hormuz; normally, about 20% of exported oil passes through the strait.^[6] As a result, the national average cost for a gallon of gas rose as high as $4.50 in mid-May.^[3]

Research suggests gas prices are more likely to drive broad inflation, compared to other commodities.^[7] Insurify’s survey found something similar.

Compared to January, Americans rate many of their living expenses as feeling more unaffordable, coinciding with the increase in gas prices. Most Americans now say food/groceries are unaffordable (55%), up from 37% at the start of the year. Meanwhile, the share of Americans saying car maintenance is unaffordable has gone up from 42% to 54%.

Housing costs, generally Americans’ most expensive budget item, are a particular pain point. About 43% of Americans say their rent or mortgage is unaffordable, up from 31% at the start of the year. The average home price rose slightly in the first quarter of 2026, but the swing in survey results is more likely a reflection that Americans feel everything is less affordable now.

Younger Americans are more likely to say they’re struggling with housing costs compared to other generations. As of mid-2026, majorities of millennials (53%) and Gen Z (53%) say their mortgage or rent is unaffordable. Young adults tend to have more student debt and lower incomes than older generations yet still compete with higher-income workers for housing. In recent decades, home prices have outpaced inflation, causing many to delay or give up on homeownership.

Economic pessimism is in no short supply across various demographics. Two-thirds of Americans (65%) say they view the economy negatively, including 72% of women and 70% of baby boomers.

Insurify asked Americans which aspects of the economy concern them. Overall, the cost of living is the most common financial worry. Nearly 4 in 5 (79%) are concerned about the cost of living. A further 72% are concerned about gas prices, and 41% are concerned about interest rates.

People’s political preferences are often linked to their view of the economy.^[8] For example, 56% of Republican or right-leaning respondents say they feel positively about the economy, compared to just 21% of Democrats or left-leaning respondents.

However, asking Americans about specific economic issues reveals some common ground across parties. Like Democrats, the majority of Republicans say they’re concerned about economic issues like the cost of living (73%), inflation (71%), and gas prices (67%).

Delaying big purchases? 2 in 3 Americans say this isn’t a good time to buy a car

Americans are generally willing to spend more when they’re feeling optimistic about the economy.^[9] Insurify’s data aligns with that idea, as just 33% of Americans say now is a good time to buy a car. The cost of a new vehicle, along with the cost of insurance and vehicle maintenance, has surged since the COVID-19 pandemic. The typical new vehicle has gone up in cost from about $40,000 to $50,000 since 2020.^[10]

Only 29% of Americans say now is a good time to buy a home. Among those who aren’t already homeowners, the figure was lower, at 23%. Although home prices aren’t increasing as rapidly as they were early in the pandemic, they’re still prohibitively expensive to many, especially given high mortgage rates. The Fed kept interest rates the same at the end of July, but investors still expect one or two rate hikes by the end of 2026, which could lead to more upward pressure on mortgage rates.^[5]

	Share Who Agree - All Americans	Share Who Agree - Democratic/Left-Leaning	Share Who Agree - Republican/Right-Leaning
Now is a good time to buy a car	33%	30%	41%
Now is a good time to buy a home	29%	25%	38%
Now is a good time to start a business	39%	37%	47%

Americans with right-leaning political views express more confidence in the economy and are similarly more willing to commit to a large purchase. Nearly 2 in 5 (38%) believe now is a good time to buy a home, compared to just 25% of left-leaning respondents.

88% of Americans have made sacrifices to deal with gas prices

Wages often don’t keep up with costs, which means that Americans have to pull from their budgets elsewhere when paying higher prices. Nearly 9 in 10 Americans say they have made adjustments to deal with the higher cost of gas. The most common sacrifice is cutting back on spending (76%). Additionally, nearly 7 in 10 (69%) say they have started driving less, and 48% are trying to generate more income.

Smaller but significant shares of Americans are making sacrifices that could end up hurting their finances in the long run. That includes delaying car maintenance or repairs (46%), which could cause further problems if left unaddressed. More than one-third have taken on additional debt, such as credit card debt, and 24% have reduced their car insurance coverage, leaving them less financially protected if involved in an accident.

Apart from making sacrifices, 24% of Americans say high gas prices have made them consider purchasing an electric vehicle (EV). EV sales declined after the government ended the federal tax credit for them in 2025 but could increase if high fuel costs persist. Used EV sales were 54% higher in the first month of the war compared to the previous month.^[11]

The survey findings suggest that driving an EV, and thus being more insulated from rising gas prices, is consistent with less pessimistic economic views as of mid-2026. While 65% of Americans view the economy negatively, only 40% of EV drivers share that view.

2 in 3 Americans say gas costs have disrupted 2026 travel plans

Apart from day-to-day commuting, gas prices are getting in the way of recreational travel for some Americans. Even travelers who aren’t driving face higher costs for airfare as a result of fuel prices.^[12] 

Broadly, two-thirds (67%) say gas prices have disrupted their 2026 travel plans in some way, such as taking fewer trips (48%) or shorter trips (26%). Gen Z, with its reputation for splurging on experiences, reports an even larger drop-off in travel plans.^[13] More than three-quarters of Gen Zers (76%) say high gas prices have disrupted their travel plans.

Americans say their car and home insurance have gotten more expensive but aren’t sure why

Gas isn’t the only transportation cost getting more expensive for drivers. The average annual cost of car insurance has risen 36% since the end of 2022, from $1,650 to $2,237 for full coverage. Insurify’s Insuring the American Driver report found that 27 states saw their average premiums increase in the first half of 2026.

In Insurify’s financial survey, nearly two-thirds of drivers (63%) said their car insurance rates have increased in the past 12 months. For homeowners insurance, that figure is even higher, at 65%.

While drivers know their rates went up, they don’t necessarily know why. In fact, 70% of car insurance policyholders who reported an increase said they don’t know why their premiums increased. Of those who did know, the most common reasons cited were inflation and more personalized policy changes, like adding another driver to the policy or filing a claim.

For home insurance policyholders, the same share (70%) of those who said their rates increased didn’t know what caused the increase. Of those who did know, the most common reasons included inflation, weather risks, and construction costs.

Tips: How Americans can save on commuting when gas prices are high

Unsurprisingly, Americans tend to drive less when gas prices are high. Some combine multiple errands into one trip. Some carpool with coworkers. These efforts help save some money, but Insurify estimates that Americans could spend an extra $385 on gas in 2026, even if they drove 10% fewer miles. Fortunately, there are other steps drivers can take to make sure they aren’t overpaying for transportation.

• Tire and engine maintenance: Properly inflated tires can improve gas mileage, as the engine has to overcome more resistance when turning underinflated wheels. Proper inflation can also extend the lifespan of the tires.^[14] Engine maintenance is another priority. While paying for an oil change can be annoying, delaying one too long can damage the engine, leading to higher repair costs.

• Driving slowly and smoothly: Poor driving behavior can cause unnecessary spending on higher fuel costs. One analysis showed that aggressive driving behavior, including speeding and rapid changes in speed, can lower fuel economy up to 30%–40%.^[15] Of course, driving less aggressively can also reduce the chance of an accident. An at-fault accident, on average, raises a driver’s car insurance premiums by 34%.

• Remove bulky, heavy items: A car’s engine has to work harder when it’s dealing with additional weight or wind resistance, which lowers fuel efficiency. A large rooftop cargo box can lower fuel economy by up to 25% at interstate speeds. An additional 100 pounds within the vehicle’s trunk can reduce a vehicle’s mileage per gallon by about 1%, according to the U.S. Department of Energy.^[16]

• Compare car insurance costs: Gas isn’t the only large commuting expense drivers pay. By the end of 2026, Insurify projects the average annual cost of full-coverage car insurance will be $2,242, roughly the same as the average annual gas spending ($2,411), according to Bureau of Labor Statistics data.^[17] Drivers who want to save on transportation could make a sizable dent in expenses by switching to another insurer that charges them a better rate for similar coverage.

Methodology

The proprietary data featured in this study comes from an online survey that Insurify commissioned. The survey’s respondents consisted of 1,500 U.S. residents between 22 and 70 years old who own or lease a car. Respondents were asked up to 15 questions about their finances and insurance, among other topics. The survey fieldwork took place from June 15 to June 18, 2026.

For media inquiries or questions about our study, please contact the author here.