When U.S. Secretary of Transportation Mary Peters announced thatAmericans drove 10 billion fewer miles in May 2008 than in May2007, she was sounding the alarm that the declining funds from thegas tax could affect the country's infrastructure, which is heavilyreliant on this source of funding.

Will this decrease in vehicle miles driven — which is thethird-largest monthly drop in 66 years — have auto insuranceimplications as well? Claims spoke with Kevin Mabe, chief economistat Farmers Insurance, to obtain more details about how rising gasprices and fewer driven miles could affect the auto claimworld.

CLAIMS: Gas prices have reached recordhighs this summer. How does this affect typical drivingbehaviors?

MABE: We have read press reports that consumershave been paring back their driving and consolidating trips anderrands. Ridership on public transportation has increased thisyear. The sales of hybrid vehicles have increased, while the salesof trucks and large SUVs have decreased.

CLAIMS: If drivers are logging fewermiles, then one might logically conclude that the frequency of autoaccidents would decline, as well. Do you agree with thisstatement?

MABE: Fewer miles do not necessarily lead to alower accident rate. Fewer cars can also result in higher speedsand more severe accidents as well as more reckless driving. Highergas prices can cause consumers to revert to smaller cars, whichhave higher accident frequencies, more advanced unibody andpower-train technologies that cost more to repair, and a higherlikelihood of a passenger sustaining injury in a collision with alarger vehicle.