Auto insurance rate increases fall
The cost of auto insurance is expected to rise by 3.5 percent in 2004, the smallest increase in four years, reports the Insurance Information Institute.
The declining number of auto accidents due to better drivers and safer cars and crackdowns on fraud and abuse are behind the trend, though rising costs for medical care, vehicle repairs and skyrocketing jury awards remain a problem.
Rising automobile theft rates and fraud will keep costs higher for motorists in some states, such as Florida, Massachusetts and New York.
The projected increase represents a substantial slowdown from 2003 when auto insurance costs rose by 7.8 percent. The average cost for auto insurance nationwide for 2004 is estimated at $871, up $29 per vehicle from last year.
"A reduction in auto accidents, combined with improved insurer financial performance are contributing to a significant moderation in the cost of auto insurance in 2004," said Robert Hartwig, senior vice president and chief economist of the institute. "Some drivers are even seeing rate decreases, especially those with the best driving records."
