NEW YORK – The Insurance Information Institute has reported that the cost of auto insurance will only rise .5%-representing the smallest increase in six years.
Despite record vehicle-related losses arising from the 2005 hurricane season, the average cost for auto insurance nationwide for 2006 is estimated at $867-an increase of just $4 per vehicle from last year.
III Senior Vice President and Chief Economist Robert Hartwig cited the declining number of auto accidents, safer cars, new auto theft technology, fraud fighting efforts and graduated licensing laws for teen drivers as key factors contributing to the cost slowdown.
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"Many people who, for example drive safe cars, have excellent safety records and good credit-based insurance scores may see their rates go down, often by 3% to 5% or about $25 to $50 per vehicle. This is welcome news for drivers who have been battered by record high gas prices over the past year.
Record catastrophe losses associated with the five storms that hit the Southeast in 2005 Hurricanes Katrina, Rita, Wilma, Dennis and Ophelia resulted in nearly 674,000 claims for vehicles that were damaged or destroyed costing insurers some $3.2 billion. Listed below are some auto insurance and claim statistics:
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