40% Drop in Fuel Economy; Big Swings at the Pump; Why Your Driving Habits May Be Costing You More Than You Think

Mercury Insurance shares data-backed eco-driving techniques that can help reduce fuel costs and vehicle wear

LOS ANGELES, March 17, 2026 /PRNewswire/ -- With gas prices fluctuating nationally in recent years, Mercury Insurance (NYSE/NYSE Texas: MCY) is highlighting how driver behavior can significantly influence fuel costs. 

According to the U.S. Department of Energy, aggressive driving — rapid acceleration and hard braking — can reduce fuel economy by up to 40% in city driving and 30% on highways, increasing annual fuel expenses by hundreds of dollars.

For the average American driver, that inefficiency adds up quickly. AAA estimates that annual fuel costs can exceed $2,000 depending on vehicle type and region. A 30–40% reduction in fuel economy can translate into hundreds of dollars in additional fuel expenses each year — before factoring in the added wear on key vehicle components.

"Most drivers think of aggressive driving as a safety issue, but it's also a cost issue," said John Dicken, Director, Material Damage Claims at Mercury Insurance. "From a claims standpoint, we see how habits like hard braking and rapid acceleration accelerate wear on brakes, tires and suspension components. Smoother driving isn't just more efficient — it helps reduce preventable damage over time."

The Hidden Cost of Driving Aggressively

Fuel is only part of the equation.

• Brake replacement can range from $300 to $800 per axle, depending on the vehicle.
• A new set of tires can cost $600 to $1,200 or more.
• Poorly maintained or underinflated tires can lower gas mileage by roughly 0.2% for every 1 PSI drop in pressure, according to federal transportation data.

Over time, inconsistent maintenance and aggressive driving habits compound these costs.

"Driving behavior directly impacts how often certain parts need to be replaced," Dicken added. "When drivers anticipate traffic, maintain steady speeds and keep up with routine maintenance, they reduce strain on their vehicle and potentially avoid unnecessary repair expenses."

Practical Eco-Driving Tips That Make a Measurable Difference

Mercury Insurance recommends the following strategies to improve efficiency and reduce vehicle wear:

Accelerate gradually: Avoid rapid starts and jackrabbit acceleration, which significantly reduce fuel economy.

Brake smoothly and anticipate stops: Looking ahead and easing into stops reduces stress on brake systems.

Maintain consistent speeds: Using cruise control on highways can help improve fuel efficiency.

Keep tires properly inflated: Check tire pressure monthly and before long trips.

Remove excess weight: Extra cargo and unused roof racks reduce efficiency and increase drag.

Efficiency, Safety and Sustainability

The Environmental Protection Agency reports that transportation accounts for roughly 28% of total U.S. greenhouse gas emissions. While vehicle technology continues to improve, individual driving behavior remains one of the most immediate ways drivers can reduce both fuel consumption and environmental impact.

"Small, consistent changes in how we drive can produce meaningful savings over time," said Dicken. "It's one of the simplest ways drivers can protect both their budget and their investment."

For more information about efficient driving and other cost saving measures, visit the Mercury Blog.

About Mercury Insurance
Mercury Insurance (NYSE/NYSE Texas: MCY) is a multiple-line insurance carrier predominantly offering personal auto, homeowners, renters and commercial insurance through a network of independent agents in Arizona, California, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia, as well as auto insurance in Florida. Mercury writes other lines of insurance in various states, including commercial, business owners and business auto, landlord, home-sharing, ride-hailing and mechanical protection insurance.

Since 1962, Mercury has provided customers with tremendous value for their insurance dollar by pairing ultra-competitive rates with excellent customer service, through more than 4,200 employees and a network of more than 6,340 independent agents in 11 states. Mercury has earned an "A" rating from A.M. Best, as well as "Best Auto Insurance Company" designations from Forbes and Insure.com. For more information visit www.MercuryInsurance.com or follow the company on X, Instagram or Facebook.

Media interested in receiving updates from Mercury can learn more at the Mercury Newsroom.

SOURCE Mercury Insurance