Strong competition among auto insurers and consumers purchasing more smaller vehicles that cost less to repair will help keep insurance premiums down for many drivers this year, according to a Wall Street Journal
A recent report by the Insurance Information Institute estimates that the average rate consumers will spend on auto insurance in 2006 will rise only $4, or 0.5 percent from last year, to $867. This is compared to last year’s insurance rates, which climbed 2.5 percent, according to the WSJ
In addition, the report found that consumers who drive the same vehicle and maintain a clean driving record will see their insurance premiums actually go down an estimated $25 to $50 this year.
The institute determines the average policy premium by adding up all premiums paid nationwide and dividing by the number of cars insured.