Farmers Insurance has recently released the results of a preliminary economic analysis on the effects of gasoline prices on vehicle miles traveled, choices of transportation, and driving habits in the U.S. The insurer looks to study the long-term effects of rising gas prices and consumer's responses.

According to Farmers Insurance, the analysis includes an economic demand model of vehicle miles traveled that controls for effects of income, gasoline prices, and the price of alternative transportation methods, specifically air travel. However, the model does leave out factors that impact the quantity of driving, such as car prices and maintenance costs.

"Higher gas prices have begun to persuade drivers to begin to change their driving habits, both in terms of lengths and frequency of trips as well as choice of vehicle," said Kevin Mabe, insurance economist at Farmers in a release. "The more that consumers decrease their driving because of higher gasoline prices, the lower the probability of a collision."