Survey Finds Pumped-Up Gas Prices Mean Driving Less, Vacationing Closer To Home And Doubling-Up On Groceries
The Progressive Group of Insurance Companies Finds People's Appetite for Driving Drops as Gas Prices Rise
MAYFIELD VILLAGE, Ohio — May 2, 2005 —Pain at the gas pump has people looking for ways to cut costs, according to a recent countrywide online survey conducted by the third largest auto insurer in the country, the Progressive Group of Insurance Companies.
Last year, when prices topped $1.75 a gallon, half of all drivers surveyed by Progressive (50 percent) said they would change their driving habits as a result of rising gas prices. When the same question was posed this year as gas prices reached an all-time high of $2.22 a gallon, 14 percent more drivers (57 percent) said they'd change their driving habits. And the more gas prices rise, the more people are willing to change: 66 percent will change how they drive if prices reach $2.40 a gallon, and 78 percent will if prices reach $3 a gallon.
What will they do differently? According to this year's survey results, the majority say they will drive less often (52 percent) while others will drive shorter distances (24 percent). Some will cut down on driving to see family and friends (23 percent).
Also, the majority (61 percent) say higher gas prices will affect their summer vacation plans. For example, they will vacation closer to home (24 percent), cancel vacation plans altogether (14 percent), fly instead of drive (13 percent) or take short day trips instead of driving to a destination farther away (11 percent).
"It's intuitive, yet interesting, to see that the more gas prices climb, the more changes there are in people's driving behavior," said Robin Harbage, product development general manager, Progressive. "In fact, we saw higher percentages across most categories this year with gas at $2.22 a gallon versus last year when it was 'only' $1.75 a gallon."
The survey also found people are willing to change more than just their driving habits: Three out of four drivers (76 percent) plan to make lifestyle changes as a result of rising gas prices. The leading thing drivers say they will do is double-up on groceries in order to make fewer trips (47 percent), followed by talk on the phone rather than visit friends/family in person (41 percent) and watch more television or movies at home (40 percent).
Fifty-two (52) percent of all drivers say they'll pursue other money-saving options as a result of rising gas prices. To save money on transportation costs, drivers are four times more likely to buy a vehicle that gets better gas mileage (24 percent) and three times more likely to buy a cheaper grade of gas (20 percent) than to shop around for auto insurance (6 percent). And while it might not net much in savings, a whopping 93 percent of drivers say they would drive out of their way to save 20 cents a gallon on gas.
"Driving out of the way to save 20 cents a gallon is pretty extreme when you stop to think about how much money you're really saving," said Harbage. "Assuming you fill your 20-gallon tank about once a week and save 20 cents a gallon, in a six-month period you'll save $104. You could very easily save that much or more on a six-month auto insurance policy just by visiting an auto insurance Web site or an independent agent or broker, because rates can vary by hundreds of dollars among companies."
The Progressive Group of Insurance Companies, in business since 1937, ranks third in the nation for auto insurance based on premiums written and provides drivers with competitive rates and 24/7, in-person and online service. The products and services of the Progressive Direct Group of Insurance Companies are marketed directly to consumers by phone at 1-800-PROGRESSIVE and online at progressivedirect.com through the Progressive DirectSM brand. The Drive Group of Progressive Insurance Companies offers insurance through more than 30,000 independent insurance agencies that market their products and services through the Drive Insurance from ProgressiveSM brand. For more information, go to driveinsurance.com. The Common Shares of the Progressive Corporation, the Mayfield Village, Ohio-based holding company, are publicly traded at NYSE:PGR. More information can be found at progressive.com.
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Robin Harbage is available for interview. For assistance in setting up an interview, contact our Media Relations Department.
*Editor's note: 2004 Gas Prices Survey results available upon request.
Did You Know...
According to a countrywide survey by The Progressive Direct Group of Insurance Companies…
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The Power Of The Pump
Fifty-seven (57) percent of drivers say they will change their driving habits as a result of rising gas prices. They will:
- Drive less often (52 percent)
- Drive shorter distances (24 percent)
- Cut down on driving to see family and friends (23 percent)
A Good Excuse Not To Visit My Mother-In-Law
Five times more drivers say they'll cut down on driving to see family and friends as say they'll take public transportation (23 percent and 4 percent, respectively).
Wow, No Traffic Today
Nearly half (49 percent) of the drivers who say they'll change their driving habits due to higher gas prices plan to cut back on driving by 20 or more miles a week.
Top 5 Things Drivers Will Do As Gas Prices Continue To Increase
| |
If gas prices reach |
% change |
| $2.40 a gallon |
$3.00 a gallon |
| Drive less often |
58% |
68% |
17% |
| Drive shorter distances |
33% |
41% |
24% |
| Cut down on driving to see family/friends |
31% |
37% |
19% |
| Take public transportation |
8% |
12% |
50% |
| Cut down on driving to my child's event/activity |
7% |
11% |
57% |
Robbing Peter To Pay Paul?
A whopping 93 percent of drivers say they would drive out of their way to save 20 cents on a gallon of gas. Of these drivers:
- 35 percent would drive less than five miles out of their way
- 39 percent would drive between five and 10 miles out of their way
- 5 percent would drive more than 20 miles out of their way
Hey Honey, How About Vacationing In The Backyard?
Sixty-one (61) percent of drivers say higher gas prices will affect their summer vacation plans. Of those 61 percent:
- 24 percent will vacation closer to home
- 14 percent will cancel their summer vacation plans
- 13 percent will fly instead of drive to their summer vacation destination
- 11 percent will take short day trips instead of driving to a vacation destination farther away
Top 5 Lifestyle Changes People Will Make As Gas Prices Rise
Three out of four drivers (76 percent) plan to make lifestyle changes as a result of rising gas prices. Those who'll make changes say they will:
- Double-up on groceries in order to make fewer trips (47 percent)
- Talk on the phone rather than visiting friends/family in person (41 percent)
- Watch more television or movies at home (40 percent)
- Spend more time on the Internet or computer (38 percent)
- Walk or bike to convenient destinations (33 percent)
When given the opportunity to write-in their answers, one person said "sell the car."
Will Work For Savings
Fifty-two (52) percent of all drivers say they will pursue other money-saving options as a result of rising gas prices. To save money on transportation costs, drivers are four times more likely to buy a vehicle that gets better gas mileage (24 percent) and three times more likely to buy a cheaper grade of gas (20 percent) than to shop around for auto insurance (6 percent).
Interesting write-in answers include: drive slower and drive with the air conditioning off.
If gas prices go as high as $3 a gallon, many drivers say they will drive only when necessary. A few people say they'll stop driving all together.
Cruise Control
When asked which cost of owning a vehicle was most outside their control, the majority of drivers say gas prices (65 percent), followed by auto insurance (14 percent), maintenance/repairs (12 percent) and MSRP (Manufacturer's Suggested Retail Price) (9 percent).
Gas Prices Are Up And So Is The "Surf"
Men are more likely than women to spend more time on the Internet or computer as a result of rising gas prices (42 percent versus 35 percent) — although women are more likely to talk on the phone rather than visit friends and family in-person (43 percent versus 38 percent).
Are Men Smarter Shoppers?
To save money on transportation, men are more likely than women to buy a car that gets better gas mileage (28 percent versus 21 percent).
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