Auto Insurance rates falling

As if rising gasoline costs weren't enough to dampen our love of the open road, auto insurance rates have been increasing steadily for about the past four years. But there's some good news for many of us -- rates are falling in many places, and overall, the growth rate is dropping. Last year alone, American auto insurance rates rose nearly 8%, on average, but this year's average increase is expected to be just 3.5%.



According to a New York Times article, "After nearly 25 years of rising auto insurance rates, prices leveled off in 1997 and 1998, then dipped to an average cost of $680 per car across the country in 1999 and 2000. But the insurers said costs began to get ahead of them again and they began raising prices to an average of $842 per car last year." Ouch.



Many insurers are cutting rates in some or all regions, but they're generally not doing so with a broad stroke. Instead, some are cutting rates for their better customers (those who manage to avoid accidents, speeding tickets, and claims) while raising them for those who cost them more. Some of the many insurers involved include GEICO, a unit of Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B); USAA; Progressive (NYSE: PGR); Allstate (NYSE: ALL); and State Farm.