The automobile insurance business in the United States is controlled to a great extent by private insurance companies. There are numerous small and large insurance companies in the market and these share more than half the profits earned from the automobile insurance business. However, due to the recent economic recession, there is a slowdown in the market leading to softening premium regimes. This has, in turn, lead to a slowdown in the growth of the overall insurance industry throughout the US, which, until recently, has shown a considerable expansion. Many cost cutting measures have been implemented by the automobile insurance companies in the present scenario. Another major problem these companies face is the rising expenses that they have to contend with. These increased expenses are a result of the increased number of fraudulent claims or over-treating a legitimate injury on occasion or even treating non-existent injuries. Although corrective measures have been put into place, these activities still affect the development of the automobile insurance market to some extent. Automobile insurance works out to be quite expensive and because it is a legal requirement, there is no option for car owners; they have to comply with the rules. With the recession and the competition to survive in the market, many automobile insurance companies are offering reduced premiums to their customers. This works in favor of the consumer since he or she can get an affordable car insurance policy according to the budget and comply with the legal requirement as well.