Auto Insurance Rates

Auto insurance rates have been dropping for the last couple of years as consumers shop around for better deals, and auto insurers are starting to believe it can't go on much longer without compromising profits.

The biggest auto insurers help drive consumer shopping with massive advertising budgets and selective price cuts, putting auto insurers beyond the top-tier in a quandary as they try to find innovative ways to attract attention.

Mild catastrophe seasons over the last couple of years have helped keep insurance profits healthy generally for insurance companies, but a Standard & Poor's report last week on personal lines insurance warns that profit margins could tighten considerably if insurers discount too deeply or loosen terms too far in order to keep their customers.