For the first time this millennium, auto insurance rates are supposed to go down this year. In fact, the Auto Insurance Institute predicts that some people will save a substantial amount because rates are declining. Why? Well, New Jersey – which has been the most expensive of any state - has lessened regulations and improved the availability of competition. So, rates there will go down. Secondly, dozens of states have increased teenage driving restrictions. These include increasing the driving age and restricting the time of day teens can drive. In addition, cars are much safer than they used to be. One automaker – Volkswagen - has done a controversial series of commercials regarding the safety of their cars. Honda and Volvo are also competing for the title of “Safest Car.” Another factor is the baby boomers. The generation has gotten older, and, therefore, they are driving safer. Road design itself has improved, preventing a lot of accidents, as well. New dividers and guide wires are included in this category. A guide wire keeps cars going in the right direction and eliminates head on collisions. So, all of these things combined have all led to more competition and lower prices. Just be sure to save big money by shopping around.