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

Mercury Insurance (NYSE: MCY) warns that aggressive driving can cut fuel economy by up to 40% in city driving and 30% on highways, raising annual fuel expenses by hundreds of dollars.

Rhea-AI Summary

Mercury Insurance (NYSE: MCY) warns that aggressive driving can cut fuel economy by up to 40% in city driving and 30% on highways, raising annual fuel expenses by hundreds of dollars. The release links driving habits to brake, tire and suspension wear and offers practical eco-driving tips.

Key figures cited include AAA annual fuel costs exceeding $2,000 for many drivers and EPA data that transportation equals 28% of U.S. greenhouse gas emissions.

Argus Mar 17 session

-0.90% close to close Open Argus

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News Market Reaction – MCY

On Mar 17, the day this news came out, MCY closed 0.90% below the previous close.

Data tracked by StockTitan Argus for the Mar 17 session.

Key Figures

City fuel economy loss: up to 40% Highway fuel economy loss: 30% Annual fuel costs: $2,000 +5 more

City fuel economy loss

up to 40%

Aggressive driving impact in city driving (DOE data)

Highway fuel economy loss

30%

Aggressive driving impact on highways (DOE data)

Annual fuel costs

$2,000

Estimated annual fuel costs for average American driver (AAA)

Fuel loss per PSI

0.2% per 1 PSI

Mileage reduction from underinflated tires

Brake replacement cost

$300–$800 per axle

Typical brake replacement range by vehicle

New tire set cost

$600–$1,200+

Cost for a set of tires

Transportation emissions share

28%

Share of total U.S. greenhouse gas emissions (EPA)

Fuel economy reduction range

30–40%

Overall reduction from aggressive driving behaviors

Historical Context

5 past events · Latest: Mar 12

5 events

1. Mar 12

   Driving law update

   24h Move

   -1.1%

   California 2026 driving laws and safety-focused regulatory changes highlighted.

2. Mar 10

   EV travel trends

   24h Move

   -0.7%

   EV adoption and travel tips for spring break road trips discussed.

3. Mar 5

   Severe weather risks

   24h Move

   -2.0%

   Storm frequency statistics and preparedness guidance for homes and vehicles.

4. Mar 3

   Tax-time reminders

   24h Move

   -0.3%

   Insurance documents and digital access reminders for tax preparation.

5. Feb 26

   Auto theft trends

   24h Move

   +1.3%

   National auto theft decline and evolving tech-driven theft tactics outlined.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

greenhouse gas emissions, Environmental Protection Agency, U.S. Department of Energy

3 terms

greenhouse gas emissions medical

"The Environmental Protection Agency reports that transportation accounts for roughly 28% of total U.S. greenhouse gas emissions."

Greenhouse gas emissions are the gases a company releases into the air—like carbon dioxide or methane—that trap heat in the atmosphere and contribute to global warming. For investors, these emissions matter because they can lead to higher regulatory costs, fines, shifting consumer preferences, and physical risks (like supply-chain disruptions), or create opportunities in low-carbon products; think of emissions as a company’s climate footprint that can affect future profits and value.

Environmental Protection Agency regulatory

"The Environmental Protection Agency reports that transportation accounts for roughly 28%..."

An environmental protection agency is a government body that sets and enforces rules to limit pollution, protect air and water quality, and manage hazardous waste. Investors care because its regulations can change the costs, legal risks, and market opportunities for companies—think of the agency as a referee whose new rulings can raise compliance bills, create winners and losers, or open markets for cleaner technologies.

U.S. Department of Energy regulatory

"According to the U.S. Department of Energy, aggressive driving — rapid acceleration..."

A cabinet-level federal agency responsible for national energy policy, energy research, and managing certain energy resources and infrastructure. Investors watch it because its rules, funding decisions, technology grants, and program priorities can change costs, create markets, or shift demand—much like a city's zoning board or grant-maker reshaping which projects get built and which technologies get a boost.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/40-drop-in-fuel-economy-big-swings-at-the-pump-why-your-driving-habits-may-be-costing-you-more-than-you-think-302715965.html

SOURCE Mercury Insurance

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How does Mercury Insurance (MCY) quantify the fuel economy loss from aggressive driving?

Aggressive driving can reduce fuel economy up to 40% city / 30% highway. According to Mercury Insurance, that loss can add hundreds of dollars to annual fuel costs and increase wear on brakes, tires and suspension, raising maintenance and repair frequency.

What are the main cost impacts cited by Mercury Insurance (MCY) from poor driving habits?

Poor driving raises fuel and repair bills through increased wear on components. According to Mercury Insurance, brake replacement can be $300–$800 per axle and tires $600–$1,200, plus higher fuel spending from reduced efficiency.

Which eco-driving tips does Mercury Insurance (MCY) recommend to reduce fuel costs?

Mercury Insurance recommends gradual acceleration, smooth braking, steady speeds, proper tire inflation and removing excess weight. According to Mercury Insurance, these behaviors measurably improve fuel economy and reduce component wear over time.

How much can underinflated tires affect fuel economy, per the information Mercury Insurance (MCY) cites?

Underinflated tires lower gas mileage roughly 0.2% per 1 PSI drop. According to Mercury Insurance, checking tire pressure monthly and before long trips helps preserve fuel efficiency and prevent added tire and suspension wear.

Does Mercury Insurance (MCY) link driving behavior to environmental impact and how?

Yes. Mercury Insurance highlights that transportation is about 28% of U.S. greenhouse gas emissions, so improved driving habits reduce fuel use and emissions. According to Mercury Insurance, small, consistent changes can yield meaningful savings and lower environmental impact.