If the predictions are true, car insurance premiums should be dropping in 2007. How much could you save if you shopped around now? It all depends.

According to the Insurance Information Institute, the average U.S. driver could be paying less for auto insurance in 2007. Safer cars, a competitive marketplace, new underwriting and aggressive fraud-fighting have all combined to drive down the cost of car insurance. The Insurance Information Institute expects the average premium expenditure to drop 0.5 percent. They also attribute the drop in costs to fewer costly claims.

However, the cost of insurance per individual driver still depends on a lot of factors including:

* Your age
* Your driving record
* The amount of coverage you get
* How long it's been since you have had coverage
* The type and age of vehicle you are insuring
* Your credit score
* Where you live
* How many miles you drive every year

So is it worth it to shop around for a better deal on your car insurance? It could be. Although the average savings due to price drops may not be significant, you still may be able to save by doing some comparison shopping. What's more, you may want to adjust some of your coverages and deductibles since you last shopped. Reducing some coverages on older vehicles and increasing your deductible can help you save more on auto insurance costs. You may also get a better rate if your credit score has improved.

Try to get at least three different quotes when you comparison shop, and make sure you are getting quotes on the same limits, deductibles and coverages from each insurance company.

Who knows? With a downward trend in auto insurance premiums, we U.S. drivers may see some financial relief this year.