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How the ARRA act could lead to a lower auto insurance premium down the road

Posted On Wed, February 17, 2010

As the American Recovery and Reinvestment Act marks its first year, AAA is applauding the act's results regarding safety improvements that have been made to many roads and highways across the country.

Utilizing $26.6 billion that was given to the Federal Highway Administration for highway projects and safety upgrades, AAA said that the funding had led to significant safety improvements such as the installation of rumble strips, median barriers and roundabouts.

"Motorists and other transportation system users have received a direct safety benefit from the money provided through the American Recovery and Reinvestment Act," said AAA President and CEO Robert L. Darbelnet. "These low-cost, easy-to-install countermeasures will help prevent vehicles from drifting out of travel lanes and reduce crashes at intersections."

As the nation's roads become safer and prevent more accidents and fatalities on the road from occurring, another benefit of the act may also be seen in declining auto insurance premiums as insurers will not have to deal with as many claims as before.

Victor Mendez, an administrator for the FHWA, added that the stimulus package had not only put a number of Americans back to work, but had also saved lives with the numerous transportation upgrades across the country.

According to AAA, rumble strips - which were installed on roads in at least six states - help lessen the 25,000 deaths that are caused by road departures. Additionally, the installation of 75 miles worth of median barriers can reduce crossover median deaths by more than 80 percent.

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