Increasing Gas Mileage Is Changing Vehicles, Repair Costs And Premiums

Mileage and insurance. When these two words are linked together, most people assume that the subject will be “mileage-based insurance” or the “pay-as-you-drive” model of insurance. But often overlooked is the effect that the quest for better gas mileage has had on auto insurance. Our desire for better miles per gallon (mpg) has impacted the auto insurance business from premiums to collision repair. In late 2009, the Obama administration advanced by four years the George W. Bush administration’s requirement that the new U.S. vehicle fleet (cars and trucks) attain a combined 35.5 mpg.