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Auto Insurance Outlook

The outlook is good for motorists on the auto insurance front. The Insurance Information Institute is predicting auto insurance rates will just slightly increase this year, but some say not everyone will feel the benefit.

Motorists in 2005 will see the smallest auto insurance increase in five years according to the Insurance Information Institute.

Jennifer Moore, a motorist, says, "Compared to previous rates going up or whatever, a 1.5 percent raise isn't that bad, especially for people like me who are going to start paying their own insurance soon. That's a good thing to hear."

Experts cite a declining number of automobile accidents, safer cars and new auto theft technology as key factors behind the trend. According to the report, the average cost of auto insurance for 2005 is estimated at $870, an increase of $13 per vehicle from last year.

Guy Cockrell is an insurance sales manager with AAA. He says while an increase of 1.5 is extremely low, most Floridians will not experience the benefit.

Guy says, "We're a transient state. We have a large population increase, there are a lot of seniors that live in Florida, there is a lot of tourism in Florida. There are a lot of factors that go into keeping Florida rates a little higher."

The report also notes that new vehicle security devices like electronic tracking systems have helped keep premiums low. The report also notes the rising costs for medical care, vehicle repairs and higher jury awards remain a problem.


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