In 2002, the automobile insurance industry grew by 15%. During the past three years, growth has been only 3% per year.  The two largest car insurance providers in the U.S. are State Farm and Allstate but Geico and Progressive have been threatening their dominance through  unique branding, direct sales expertise, and state of the art technology.

According to auto analyst Michael Grasher , “Geico and Progressive are clearly the innovators in this field, and it’s helped them continue to bring in business despite the recession.”  Traditionally however, the main objective is not to gain more new customers or compete to offer the cheapest insurance but to keep your existing customers happy and in that department Allstate and State Farm currently have the edge.

Although many Americans have forestalled buying new cars they spent nearly $160 billion for premiums on their personal automobile insurance. But since they’re either selling some of the cars they own or waiting longer to buy a newer car, fewer policies are being sold.

In a highly competitive industry, auto insurers spent over $1 billion advertising cheapest insurance products in 2009.

Each brand of auto insurance has a different methodology in selling their products. Some focus on cheapest insurance prices while others focus on better service. Because insurance needs can be very personal many people shop around and weigh their options before making their final decision.