# Auto Insurance Rate Increases Dropping 

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The cost of auto insurance is expected to rise by 3.5 percent in 2004, the smallest increase in four years, according to the Insurance Information Institute (I.I.I.). 

The declining number of auto accidents due to better drivers and safer cars and crackdowns on fraud and abuse are behind the trend, though rising costs for medical care, vehicle repairs and skyrocketing jury awards remain a problem, according to the I.I.I. analysis. 

Rising automobile theft rates and fraud will keep costs higher for motorists in some states, such as Florida, Massachusetts and New York. 

The projected increase represents a substantial slowdown from 2003 when auto insurance costs rose by 7.8 percent, the I.I.I. observed.

Sources:
- Insurance Journal (http://www.insurancejournal.com/news/national/2004/03/30/40611.htm)