“Smart Strategies to Reduce Your Commuting Expenses”

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Reduce Commuting Costs Amid Rising Inflation

As inflation continues to impact consumer spending and more companies return to in-person work, commuters are feeling the strain of rising transportation costs. According to AAA, the average annual cost of owning and operating a new vehicle reached $10,728 in 2022. Driving to work can significantly impact your budget. However, there are several strategies to reduce commuting expenses, such as using a more fuel-efficient car, carpooling, or utilizing public transportation.

1. Use a More Fuel-Efficient Vehicle

If your household has multiple vehicles, opt for the one with the best gas mileage for the longest commute. Small differences in gas mileage can add up: a vehicle that gets 30 MPG can save you $918 annually compared to one that gets 20 MPG, based on fuel costs of $3.67 per gallon and driving 15,000 miles per year. Considering a new car? Choose a fuel-efficient electric or hybrid vehicle. Federal tax credits of up to $7,500 for new vehicles and up to $4,000 for used ones are still available. Weigh potential fuel savings and tax benefits against the car’s purchase price and ownership costs.

2. Join a Carpool

Carpooling with a neighbor, friend, or family member who has a similar destination and work schedule can cut commuting costs and reduce the stress of traffic. Some large employers offer employee van pools or shuttles. Check your local transit agency’s website for carpooling options and resources to find carpool buddies.

3. Take Public Transportation

Switching to public transportation can save the average household up to $10,000 per year, according to PublicTransportation.org. Besides saving money, public transportation allows you to read, nap, or catch up on work during your commute. Monthly or annual passes are generally cheaper than daily payments. Check if you qualify for special rates, such as senior or student discounts.

4. Walk, Bike, or Ride a Scooter

Depending on the distance between home and work, your fitness level, and available time, biking, walking, or riding an electric scooter to work can save money and provide a workout. Walking costs the least but takes the longest. Electric bikes and scooters cover more ground without breaking a sweat, making longer commutes feasible. Wear appropriate safety gear and check local laws before hitting the road.

5. Take Advantage of Employer Stipends, Reimbursements, or Tax Savings

Your employer may offer stipends or reimbursements for parking fees, biking to work, or taking public transportation. Some companies have programs allowing you to set aside pretax money for qualified parking and transit costs. In 2023, you can save up to $300 per month for parking and up to $300 for transit passes or commuting in qualifying vehicles through employer-sponsored plans.

6. Find Fuel Savings

Simple habits can help lower fuel costs. Maintain your car, properly inflate tires, and avoid sudden braking or accelerating. Stop-and-go traffic consumes fuel; negotiating flexible hours can help you avoid traffic and save gas. Use gas apps like Gas Guru and Gas Buddy to find the lowest prices near you. Signing up for gas station or supermarket rewards programs can earn significant discounts on fuel. You can also earn cash back, points, and other rewards by using a gas rewards card to pay at the pump.

The Bottom Line

Some money-saving commuting methods can also help reduce car insurance costs. Insurance companies often discount premiums if you drive fewer than 10,000 or 12,000 miles annually; pay-per-mile auto insurance is another option. New or alternative-fuel cars may earn discounts too. Reviewing your credit score before shopping for insurance can provide insights into what insurers might see. Improving your credit score could help lower car insurance costs and increase savings on your daily commute.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to help you with the best solutions tailored to your needs.

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