High gas prices could have a saving grace for American motorists–lower insurance rates, according to a consumer group.

An analysis by the Consumer Federation of America contends that those who are driving less as a result of higher gasoline prices could save an average of 5-to-10 percent–about $47 to $94–on their auto insurance rates.

CFA noted that any premium savings as a result of less driving prompted by soaring fuel costs will vary by insurer, and warned that some changes in mileage might not produce savings at all with some carriers.

However, J. Robert Hunter, director of insurance for the CFA, as well as a former Texas insurance commissioner and federal insurance administrator, said that “most insurers include miles driven and how the car is used as major factors in determining rates, so if consumers have altered their driving habits, they may qualify for immediate rate relief.”

According to the CFA analysis, at a national average of $2.20 per gallon, gasoline prices at the pump were 41 cents higher (22.7 percent) in late December than one year before.

Joseph Annotti, senior vice president of public affairs for the Property Casualty Insurers Association of America, took issue with the CFA analysis. He said the dramatic increase in gasoline prices has taken place only in the last few months, “and there has been no evidence they have had a significant impact on Americans' driving habits.”

However, he added, “to be sure, individuals who have dramatically reduced the number of miles they drive each year–for whatever reason–should check with their insurer or agent to determine if they qualify for a discount.”

Robert P. Hartwig, senior vice president and chief economist at the Insurance Information Institute in New York, agreed that the CFA analysis “makes common sense,” but whether Americans will drive less is an open question, he added.

Mr. Hartwig said there is anecdotal information that auto usage declined after the hurricanes, but there are indications usage levels are rising again.

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