If a majority of American drivers will begin to drive less often, it is possible that car insurance companies will offer lower auto insurance rates. If one will closely observe, this could already be slowly happening already.
It is sort of a domino effect. When drivers lessen their time on the road, the rate of vehicular collisions or other road accidents also decrease. When accident rates decrease, only a few will have to file for claims on their car insurance. As this goes on in the next few years, auto insurance rates will also have to go down.
Car insurance companies normally respond to the market trend. Once they see that only a small percentage of their clients are filing for claims, it will have to take action by lowering auto insurance rates also. This will reflect first in the auto quotes they prepare for their clients as part of their goal to stay abreast in the competition among car insurance providers. Before you know it, you will be paying lower monthly premiums already.
Gas prices are steadily increasing because of global and national problems. The Federal Highway Administration (FHWA) has been releasing statistical studies to support their claim that car traffic is decreasing. In March 2008, the vehicle miles traveled or VMT dropped to 4% in a period of one year. This is so far the steepest decline recorded since FHWA started recording traffic volume trends sixty years back.
Car insurance companies are quick to respond to changes. When they see that a client hardly files for claims, they do not think twice in adjusting insurance premiums accordingly. They do this partly to get the loyalty, trust and affirmation of clients, and ultimately to stay in business. After all, their clients are practically the lifeblood of their company.
As an insurance holder, you can always have your premium adjusted if you feel you deserve a lower rate. This can be normally done upon renewing your insurance policy or right before you are about to renew.
Of course, Americans still wish that gas prices will someday start to go down again as it has been depleting their monthly budget, especially the middle class. But for now, while the United States is experiencing serious economic instability and the gas prices are continually soaring, there is some positive light to see in this seemingly dour situation.
At the very least, Americans can do their share in looking for ways to save on gas and drive less, and that will hopefully continue to further lower auto insurance rates also.