The number of miles Americans drive is dropping, and that could mean good news for the nation's auto insurers, one investment analyst said.
Meyer Shields, an analyst with Stifel Nicolaus, said in a note that reports from the U.S. Department of Transportation indicate Americans are driving less miles. He speculated that the primary cause of this trend is the rising price of gasoline.
For insurers, he continued, this can have a positive impact on accident frequency and underwriting.
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