Automobile Insurance Rates Make A Barometer of Accident Costs

Drivers, themselves, set their own automobile insurance rates and they are not doing a good job of it. Insurance premiums are based on the total number of accidents among a group of drivers and the cost of these accidents. Traffic safety engineers know that both the frequency and severity of accidents is the cause of the increasing rates at an alarming rate. By applying the rules of careful driving, the public could eliminate more than half the accidents immediately and bring about a sharp reduction in insurance premiums. Safe driving is the only way to cur down on both accidents and insurance premiums. This statement highlights the direct relationship between effective traffic safety efforts and doing something to keep insurance premiums at the lowest possible level.