How to Save Money on Gas

There are many ways to save money on gas, but gas discount programs, fuel-efficient cars, and carpools are just some of the methods people have been using to save money.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 10, 2022

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Here's what you need to know...

  • Using public transportation will save you on gas
  • Carpooling is another good option
  • Purchasing a fuel efficient vehicle can save you a lot of gas money
  • Consider an electric bike for errands and short commutes

Almost everyone these days is asking for ways to save money on gas. Gasoline prices have surged upward along with other commodity prices over the past few years. Knowing how to save money on gas is one way to pocket hundreds, if not thousands, of dollars per year.

One of the easiest ways to save money on gas is to use public transportation. If you live in a metropolitan area, taking the bus, commuter train, or subway, can save you money on gas and car repairs.

Driving a car isn’t just about the cost of gasoline to keep it running. You must provide regular service to keep the car in good working condition.

If you’re thinking about saving money, compare your car insurance rates with competitive car insurance quotes by typing your ZIP code on this page!

Then, consider new ways to save money on gas, including:

  • Carpools
  • Discount programs
  • New fuel-efficient vehicles

How do carpools help drivers save money on gas?

Driving yourself to work can be an expensive proposition for many employees.

If you’re driving an average of 50 miles to work each day, and your car gets 13 miles per gallon in stop and start traffic, you’ll use about four gallons of gas every day. At about $4 a gallon, that’s about $15 to $16 a day.

Carpooling to work with colleagues or neighbors saves money on gas when each passenger contributes an equal amount to drive to work. Two people driving to the same destination will reduce gas costs by about 50%.

Add another two passengers, and the price of gas declines by 75%. If gas sells at about $4 per gallon, you’re paying the equivalent of $1 per gallon with three passengers in the car.

Saving money on gas, along with tolls and parking fees, makes carpooling a cost-effective and social way to drive to work! It is also a useful way to save money on a road trip!

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How do gas discount programs help to save money on gas?

Depending upon where you live in the United States, many retailers have launched successful gas discount programs or gas station reward programs. A buyer of food or other products or services earns points that can be redeemed at a gas retailer.

For example, a family buys groceries at a large retail food chain. For each $100 spent, the family earns a 10-cent discount on each gallon of gas they purchase.

If the family of four spends the average $800 per month, reported by the USDA, they will save 80 cents per gallon when they use the earned discount for a single fill up.

If the family owns a larger vehicle, such as an SUV, the discount helps them save about $24 (assuming a 30-gallon tank). If the family owns several vehicles, some gas discount programs allow them to use the earned discount to fill up more than a single car at the pump.

The percentage amount saved by the family depends on how they drive the SUV or other vehicles. If they use the vehicles for personal use, and don’t commute a long distance or drive it for business purposes, the family can save a meaningful percentage of funds used to buy gas.

If the family fills the tank once or more per week, such gas discount programs probably won’t have a meaningful impact on the family’s gas expenditures.

Which cars help me save money on gas?

According to Consumer Reports in April 2016, the BMW i3 Giga is the most fuel-efficient car driven in the United States with a 141 mpg highway.

The Mitsubishi i-MiEV SE comes in second in fuel efficiency, with an average of 116 mpg highway. If your car is a gas guzzler, you may want to consider trading it in for something that is more fuel-efficient in order to help lower your bills and pay less for gas.

Other highly fuel-efficient cars include:

  • Toyota Prius – 48 mpg highway
  • Volkswagon Jetta – 45 mpg highway
  • Honda Fit – 42 mpg highway
  • Ford Fusion Hybrid – 41 mpg highway

Buying an electric car or bike can also help you save money, due to the recent car inflation on gas vehicles and gas prices. Although electric cars haven’t really caught on with U.S. drivers, purchasing an electric bike can a make a dent in gas savings for an individual or family in some climates.

The bike’s charge allows the driver to travel about 40 miles. That makes an electric bike a good idea for a short-term commuter or student.

Outfitting the electric bike with a basket or carriage compartment can make the vehicle useful for running errands without spending money on gas.

Over a year’s time, the money saved in gas can easily pay for an electric bike. Prices vary, but the average electric bike (such as HyBikes) costs about $1,000.

Fuel-efficient cars helps drivers save on car insurance — request car insurance quotes now by entering your ZIP below!

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