Auto Insurance Premiums Expected To Remain Virtually Unchanged In 2006

The cost of auto insurance is expected to rise by just 0.5 percent in 2006, the smallest increase in six years. The average cost for auto insurance nationwide for 2006 is estimated at $867—an increase of just $4 per vehicle from last year, despite record vehicle-related losses arising from the 2005 hurricane season. The projected increase represents a continued slowdown from 2005 when auto insurance costs rose by 2.5 percent. Experts cited the declining number of auto accidents, safer cars, new auto theft technology, fraud-fighting efforts and graduated licensing laws for teen drivers as additional key factors contributing to the cost slowdown.