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.
“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, the institute's senior vice president and chief economist. “Some drivers are even seeing rate decreases, especially those with the best driving records.”
The projected increase represents a substantial slowdown from 2003, when auto insurance costs rose by 7.8 percent, the III noted. The institute estimates the average cost for auto insurance nationwide for 2004 at $871, an increase of $29 per vehicle from last year, or about the cost of one tank of gas these days.
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