According to the Insurance Information Institute III, in 2004, auto insurance cost rise in about 3.5% which relatively the smallest increase over the last four years. Due to vehicles with more safety features, better drivers and decrease on fraud, the number of car accidents decreases. However, rising car theft rates and scams keep auto insurance cost higher in some states which includes New York, Massachusetts, and Florida.

A tremendous increase of 7.8% in 2003 in auto insurance as the Institute also represented. The 2004 nationwide average estimated at 871 dollars which has 29 dollars increase from the previous year. Nowadays, even insured drivers makes a fewer claims, an auto insurance claims that have been filed are still costing everyone's premium cost. Insurance companies costing more on vehicle repair on the increasing number of crashes which considerably also affects auto insurance premium rate. Sadly, insurance industry thinks that this is due to accidents which involves sport utility vehicles.

Medical Coverage cost is considerably one of the reason why there is an increase on premium. There is an over 20 billion medical claims this year which insurance companies could pay, therefore, those losses must be reflected on the next year's premium cost. Higher cost for medication, hospitalization and others are also included.

It is difficult to track some relative factors why premium increases if you have changes on your policy. Some of these are policyholder's driving record; when you move to a new location; purchase a newer car; and others. However, knowing these information may considerably educate you to find you the best and quality auto insurance plan for your own protection.