INSURANCE COMPANIES FIGHTING FOR YOUR DOLLARS?

TRY drhowell.net SEARCH

For auto insurers, 2008 is shaping up to be another tough year.

Insurance prices are being driven down by tough competition even as accident costs are edging up after years of steady declines. The price of competition is rising, too, with the top insurers spending around $500 million a year to keep their names in front of potential customers.

Allstate Corp., the nation's largest publicly traded auto insurer by market share, says it is poised to outperform its rivals in the toughest auto-insurance market in years. It won't be easy.

Allstate is locked in a fierce battle for U.S. drivers with State Farm Mutual Automobile Insurance Co., Progressive Corp. and Berkshire Hathaway Inc.'s Geico unit. In 2007, Allstate's overall premiums dropped a bit, with decreases in its homeowners business outweighing a 2.1% increase in auto premiums. [...]