Home » Automotive Advice - Eco-Friendly and Gas-Friendly Vehicles. » American company seeks to provide insurance against rising gas prices

American company seeks to provide insurance against rising gas prices

By using strategies that delivery companies and airlines have used for years, and American company is trying to protect consumers against a possible raise in gas prices.

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The idea is simple. By paying a fixed monthly amount, the consumer is protected if prices rise beyond a certain amount over the course of a year. If oil prices climb, the consumer is reimbursed the difference between the maximum predetermined rate, and the actual price of gas.

The catch? Well, the service, offered by LoveMyGasPrice.com, is only available in the United States for now. There, it costs $3.99 a month to cap your gas price at $2.75 per gallon (about $.69 a litre) for the first 20 gallons you use. As of today, the average cost of a gallon of gas in the US is $2.39 per.

If customers go above the 20 gallon maximum, then they can choose to spend another 3.99 $ for protection on 20 gallons more.

Having said all that, there’s no doubt that the idea is interesting and is very low-risk for the consumer. The company itself offering the insurance? Well, that’s a different story.

 

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