If all our neighbors would only drive less, we get lower prices insurance.



And that could be in the process of events. If the Americans spend less time on the road, the frequency of auto accidents is decreasing. And when auto accidents go, so do demands on auto insurance. That gets the ball rolling: When auto insurance companies see their costs to claims steadily declined, they typically respond to market conditions by reducing auto insurance quotes and ultimately auto insurance rates in a bid to remain competitive. And voila! We write smaller checks for our auto insurance premiums.

With run-away petrol prices, Americans are driving less. The Federal Highway Administration (FHWA) reported in May 2008 that the Americans are the driving force in the "historic lows". The estimated "vehicle miles traveled," or VMT for March 2008 fell 4.3 percent compared to March 2007, making it the sharpest dip for any month since the FHWA began tracking traffic volume trends in 1942. Follow want driving trends? The FHWA published monthly "traffic trends."

If car accident claims, car insurance can usually fairly quickly. To adjust premiums, it must be new auto insurance rates with each country in which they operate. You can file new auto insurance rates any time they want to respond to market conditions, and many states offer a "file and use" system, where auto insurance companies can file new car insurance and begin immediately with them without prior approval by the State Insurance Department. Some states even have a "use and file" system so that insurers, the new car insurance and then officially file it shortly thereafter. In this way auto insurance companies can begin transfer of savings (or increased) right away.

The nation's largest auto insurance are the first to trends in accidents and claims payments due to the sheer amount of data their claims. For example, State Farm, the nation's largest auto insurance, handles over 19 million auto insurance claims per year (that is little more than 17 claims per minute, all day, every day).

More Robert Pass, Director of Personal Lines for Property Casualty Insurers Association of America (PCIAA), an industry trade, says: "That's where you see competition kick in." He points out that if you live in a state That a "prior authorization", it would take longer to see rate cuts. That means Californians and New Yorkers could tapping their toes waiting car insurance price cuts, while all other bags savings.

Car insurance, we point out that auto insurance rates have been steady or declining in recent years anyway. For example, State Farm customers in all states have seen rate cuts between January 1, 2004, December 31, 2007, and customers in 39 of these countries saw double-digit percentage decreases. (State Farm policyholders in New Jersey got the largest decrease of 29.19 percent.)

More passport indicates that other factors may offset the trend in reduced driving, especially medical costs of personal injury claims, legal fees and court costs related to claims disputes and repair costs, which, because now rising faster than the rate at which car - Accidental damage.

Darn repair, medical and legal costs! Would it not for those drivers could already see lower auto insurance rates (as we sit at home). However, auto insurance generally agree that if we see substantial reductions in car accident, car insurance lower rates are not too far behind.

Maybe in the 6 - $ a-gallon mark?

If reduced driving mean lower auto insurance rates?

Insure.com called on the nation's top auto insurance companies, whether high petrol prices and lower taxes are the translation to reduce auto insurance rates yet. Here are their answers.

State Farm spokesman Dick Luedke pointed out that State Farm auto insurance rates nationwide have been on the decline since 2004, but reduced car accident claims are not directly lead to a further auto insurance rate cuts: "Our actuaries look at claims data not only to see the recent past, but also to see what the future, as the petrol prices. "

Luedke says there are no hard and fast rule which level the auto accident reduction would spark lower auto insurance rates, but says: "If we saw a reduction as large as 10 percent to accidents, we would have responded long before."

Allstate spokesman Holl Craft Kate says: "We have just recently been a decline in motor vehicle claims frequency and if they continue through the summer months, we would probably be able to attribute it to an increase in fuel costs."

Progressive spokeswoman Leah Knapp said: "We do not speculate on future price changes, but it would be correct to say that we continually review market and business conditions, including the supervision of losses, so that we make sure our policies are priced exactly we do everywhere Business. In our analysis suggests, our prices, adaptation, we can try to either raise or lower tax rates accordingly. "

Nationwide Vice President & surplus participation, Standard Auto Product & Pricing, Larry Thursby, noted that "customers have fewer accidents." But he notes, it's been this way for a few years due to a variety of factors, such as an ageing population, the safe driver, graduated licensing laws for young people and crackdowns on drunk driving. In addition, potential auto insurance rate reductions due to accidents by inflation in the usual suspects: medical and hospital costs, repair costs and court costs.