Auto Insurance Rates Down 2.8% in 1998

Auto insurance rates fell 2.8% last year nationwide--the first decline in 25 years--and could fall further this year, an industry group said. The Insurance Information Institute said the drop reflected greater competition among insurers, more skilled drivers on the road, safer vehicles and less tolerance for drunk drivers. The New York-based institute said it expected an additional drop of about 4.5% this year, adding that “motorists with good driving records may see even bigger savings.” Despite the decline in rates, auto insurance spending rose slightly in 1998, largely because of record new-car sales, which drove up the price of vehicles being insured, the institute said.