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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. [...]

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MASS DRIVERS LOVE NEW AUTO INSURANCE WEBSITE

The state's Web site that gives motorists a place to compare automobile insurance rates does not give consumers accurate price comparisons, Attorney General Martha Coakley said Tuesday.
Officials cautioned consumers about relying upon rate information obtained from the commonwealth’s Division of Insurance's Web site InsureMASS. A letter sent Tuesday from the attorney general’s office to the commissioner of insurance expressed concerns that the Web site does not allow for accurate price comparisons for the majority of consumers. [...]

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COMPARISON SHOPPING COMES TO MASS DRIVERS

The state Division of Insurance's new auto insurance Web site apparently has been popular with consumers, generating an average of about 19,500 hits a day since its launch a month ago.

But the InsureMASS site, which is designed to be a roadmap to help navigate the competitive insurance market that begins here next month, isn't winning any popularity contests in insurance industry circles.

The Web site does offer a useful database of insurance agents. But drivers who log on to the site will most likely focus on its insurance premium comparison tool.

That rate comparison system has created plenty of buzz among insurance agents, although it's probably not the kind of buzz that Insurance Commissioner Nonnie Burnes would have wanted. [...]

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ALL STATE - AUTO INSURANCE

California Insurance Commissioner Steve Poizner has ordered Allstate Corp., which covers about one out of every 10 insured cars in the state, to cut its automobile rates by 15.9% -- an average savings of $124 per car, according to state regulators..

The order, which came at the close of a lengthy proceeding before an administrative law judge, was more than twice what the Northbrook, Ill., company wanted to grant its policyholders. Allstate is considering whether to appeal the rate cut order.

"California's consumers deserve a competitive marketplace in which to shop around for the best rates that meet their needs," Poizner said in a statement. "This reduction reaffirms my commitment to ensuring that excessive rates are not charged. At the same time, the rate reduction is fair and reasonable for the company." [...]

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PROGRESSIVE VS. GEICO?

Many drivers in Nebraska should see lower car insurance rates because there have been fewer accidents.

State Farm insurance says its auto insurance rates in the state were 18% less expensive at the end of 2007 than they were at the end of 2003.

The decrease in Nebraska was the 11th biggest decrease in rates that State Farm reported. The biggest rate decrease of 29% came in New Jersey between 2003 and 2007.

Nationwide, the company's auto insurance rates fell nearly 15% between 2003 and 2007. [...]

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WHY CHOOSE AIG FOR YOUR AUTO INSURANCE?

Completing an auto insurance quote
comparison is a smart way of obtaining competitive rates. Doing so usually
involves having to contact multiple companies individually to request
quotes which can be quite a time consuming process and can quickly become
frustrating.

In today's world of technology, auto insurance has combined nicely with
the internet allowing consumers to compare rates online, complete extensive
research and even purchase a policy online. What took hours a few years
ago, now only takes minutes thanks to online technology. Consumers can log
into websites like http://www.OnlineAutoInsurance.com to obtain instant
online auto insurance quotes from a variety of carriers such as
Progressive, Infinity, AIG and other leading carriers with one simple
process. [...]

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Some legislators do not think this is fair and are doing something to change the law. -AH.

By Meghan Rubado

Ever wonder why people’s car insurance costs change when they move within Central New York?

Turns out, your address has a lot to do with what you pay.

Insurance companies may consider where you park your car, the amount of claims they receive in that area and how far you drive to work when they figure out your insurance costs, said Bruce Green and Anne Kelly, actuaries for the state Insurance Department. When those factors change, your insurance rate will likely do the same.

Insurance companies weigh these location factors with formulas that also factor in your age, how you use your car, the type of car you drive, your driving record and your marital status, among other things. LINK.

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