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Auto insurance rates not the only thing to benefit from less traffic

Posted On Thu, September 10, 2009

Metropolitan areas with traffic problems are generally considered more likely to saddle drivers with high auto insurance rates, but a recent study finds other reasons for cities to devote more effort to improving their roads and other infrastructure.

The Reason Foundation recently studied various metropolitan areas such as Detroit, Atlanta and Denver with an eye on the economic benefits that can be achieved by reducing traffic. The study applied to suburban areas surrounding the cities as well.

"If you focus on the projects proven to improve mobility and eliminate traffic jams, your investment will be rewarded several times over," said Adrian Moore of the Reason Foundation.

The organization said that many of these areas would see multibillion dollar annual gains in economic activity at a time when they are facing budget deficits and other revenue issues.

The report helps offer a new perspective on traffic problems, which have come down somewhat during the recession but which may be poised to come back along with the economy in the coming months. Traffic can also cause higher auto insurance rates by contributing to accidents and other problems, while also reducing the local quality of life.

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