With summer 2025 heating up, planning your vacation comes with new considerations as travel costs continue to shift. The rise of discount airlines has made air travel increasingly competitive, often beating the cost of fueling up the family SUV for a road trip. Let’s break down why flying might be your best bet this summer, alongside strategies to manage rising vehicle-related expenses.
The Gas Price Rollercoaster
Gas prices remain a key factor in travel decisions. While 2024 saw some relief from the 2022–2023 highs, prices are still volatile. Here’s a snapshot of U.S. gas prices as of October 2025, based on the latest trends:
- National average: $3.68 per gallon (October 15, 2025)
- Previous week average: $3.65 per gallon (October 8, 2025)
- Annual average (2025 so far): $3.55 per gallon
- Most expensive week in 2025: June 12, 2025, at $3.89 per gallon
- Cheapest week in 2025: January 15, 2025, at $3.22 per gallon
Though prices have dipped slightly from last summer’s peak of $4.99 per gallon, they’re still above the six-year national average. In states like California, prices have hit $6.10 per gallon recently, making long drives costly. Compare that to discount airlines like Spirit or Frontier, where round-trip fares can start as low as $49 for domestic routes, and flying often becomes the cheaper option for families.
Beyond Gas: The Rising Cost of Driving
It’s not just fuel hitting your wallet. Auto insurance costs have surged, with the average annual cost of full-coverage insurance rising to $2,543 in 2025, a 12% jump from last year, according to Bankrate. J.D. Power reports that 55% of U.S. drivers shopped for new insurance policies in the past year, up from 50% in 2024, driven by premium hikes averaging 15% nationwide.
Strategies to Cut Driving Costs
If you’re set on driving this summer, here are ways to ease the financial strain:
- Pay-Per-Mile Insurance: Companies like USAA, Allstate, and Nationwide now offer plans where you pay a base rate (e.g., $30/month) plus a per-mile fee (e.g., 6 cents/mile). For a driver covering 800 miles in a month, that’s $78 total—potentially cheaper than traditional policies for low-mileage drivers. Analyst Shannon Martin notes these plans are gaining traction, especially for remote workers. However, if you drive over 5,000 miles annually, a standard policy might still be more economical.
- Raise Your Deductible: Increasing your deductible from $500 to $1,000 can lower your monthly premium by 10–20%. Just ensure you have enough savings to cover the higher out-of-pocket cost in case of an accident. For example, a $1,000 deductible saved one family $200 annually on their premium, though they paid more upfront after a minor collision.
- Choose a Cheaper Vehicle: Insurance costs scale with a car’s value and repair costs. A 2015 pickup truck, for instance, costs significantly less to insure than a 2023 sedan. One driver reported paying 30% less to insure their older SUV compared to a newer compact car with identical coverage.
- Pay Premiums Upfront: Paying your annual insurance premium in full can shave 8–12% off your total cost. For a $2,543 policy, that’s a potential savings of $200–$300.
Why Air Travel Wins in 2025
Discount airlines have reshaped summer travel. Carriers like Allegiant and Southwest offer fares that can undercut the cost of gas, tolls, and vehicle wear for long trips. For a family of four, a 1,000-mile road trip at $3.68 per gallon in an SUV averaging 20 MPG costs $184 in fuel alone, not counting maintenance or unexpected repairs. Meanwhile, round-trip flights for four can be booked for as low as $400 total on budget airlines, especially if you’re flexible with dates and avoid peak holiday weeks.
Staycation or Vacation?
If gas and insurance costs make driving unappealing, and airfare doesn’t fit your budget, a staycation might be the answer. Explore local attractions, host backyard BBQs, or take short day trips to keep costs low. For those set on traveling, booking flights early through discount carriers or using fare-comparison tools like Google Flights can lock in savings.
Ultimately, summer 2025 travel comes down to math. With gas prices still high and insurance costs climbing, flying is often the smarter choice for longer trips. For shorter journeys, optimizing your vehicle expenses can make driving more affordable. Wherever you go—or stay—plan early to keep your summer budget in check.
