Less Driving Could Mean Lower Car Insurance Premiums for US

cars on the roadRecent research is indicating that ever since the early 2000’s Americans are steadily driving less and less .The initial thought was that this might have something to do with the so-called Great Recession, and it does, to a small extent, but there are a number of changes affecting the total American Vehicle Miles Traveled (VMT, for short). This has far reaching implications for a number of industries, but for the average American, there is one clear-cut potential benefit: lower car insurance premiums .

Fewer Drivers, Lower Risk

How do you get lower car insurance premiums from a decrease in the driving population, you ask? Fewer drivers on the road means there’s less of a chance of you getting into an accident with another vehicle or vice versa. This decrease in risk then translates to lower car insurance premiums for you because there’s less of a chance that your insurer will have to pay a claim.

Where Did All The Drivers Go?

no cars on the roadThere are a number of factors contributing to the decrease of drivers in the US. As outlined in an article on Time.com , these factors include higher unemployment, higher gas prices, and a rise in telecommuting, online shopping, and, of course, traffic jams. Young Americans are also waiting longer to get drivers licenses and purchase vehicles, choosing instead to use alternate means of transportation including biking, walking, and public transit.

Constantly Changing Numbers

Car insurance is a “living” industry. The data insurers use to calculate insurance premiums changes constantly and insurers are adjusting their rates (and sometimes how those rates are calculated) in response to those changes. To be sure you are getting the best car insurance premium rates available, it’s a good idea to maintain safe driving practices, be an alert and defensive driver, and to shop around before buying or renewing your insurance policy.

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