1. The amount of driving done - the media is reporting that as gasoline prices have risen, the American consumer is driving less than last year - about 5% less.


2. Various anecdotal reports are that drivers becoming aware that speed is a factor in gas mileage and are slowing down.

These two factors together may well provide for a significant drop to the bottom line over the year or two, as accidents fall due to less driving, and driving at lower speeds.

It may further very well be that as all staples and non-discretionary inflationary costs hit home more, your typical "drinking driver" won't be able to afford to drink as often, thereby dramatically lowering accident rates for those insurers specializing in the high-risk driver category.

Something to consider if you invest in insurance companies.