Allstate: Wreck rate will fall as economy slows

Allstate Corp., the largest publicly traded U.S. home and auto insurer, said the rate of car accidents will decline this quarter as policyholders drive less because of the slowing economy.

The rising unemployment rate keeps drivers off the road even more than higher-than-average gas prices, Chief Executive Officer Thomas Wilson said today in a conference call.

In other news, Northbrook-based Allstate may be downgraded by Standard & Poor's after posting a third-quarter loss of $923 million.

S&P lowered Allstate's outlook to negative on "sizeable catastrophe losses and realized investment losses," the ratings firm said today in a statement.