It's been a recurring story that rising gas prices can save consumers money on insurance because they're driving less and qualifying for low-mileage discounts, but there's another interesting effect on the economy as well: Progressive Corp, the United States' third largest auto insurer, is benefitting because they're not paying as many claims.

The combination of the highest unemployment rate in four years and gas prices above $4 / gallon in much of the country means that for the first time since 1980, Americans are driving less and in as a result, the number of accidents per insured vehicle fell by 0.5 percent in the first quarter of this year, as compared to the first quarter of 2007, when the number of accidents had shown an increase.

Why is Progressive benefitting more than other companies? It is because their customer base has a larger-than-average number of "non-standard" drivers – many of whom, because of youth or previous records, are more likely than most to be involved in accidents. Since this same group is also the hardest hit by the higher price of gasoline, and the most likely to reduce their driving to compensate, Progressive is reaping the rewards, by paying fewer claims.

According to the Federal Highway Administration, Americans drove roughly 20 billion fewer miles in the first quarter of 2008 than they did in the same period of 2007, representing a 2.1% decline.