Drivers continued to search for cheaper auto insurance in the first quarter, with Berkshire Hathaway Inc.'s (BRKA, BRKB) Geico auto insurance business winning a higher percentage of shoppers than its larger rivals.

The insurer reported Friday that Geico earned $3.261 billion in auto insurance premiums in the first quarter, up 7.6% from the first quarter last year, while closest rivals Progressive Corp. (PGR) edged out Geico with $3.41 billion in premiums, unchanged from the year before, and Allstate Corp. (ALL) said that premiums dropped 2.4% in the quarter to $4.43 billion.

Progressive's policies in force in personal lines insurance rose 4% while Allstate's dropped 1.8%.

"The number of policies-in-force increased in 2009 as more consumers switched to Geico to save money, which management believes is in response to the economic recession," Berkshire Hathaway said in its quarterly report.

Like other insurers, Geico reported that more customers increased their deductible and reduced their overall coverage to save money.

All three insurers also reported more new applications, as drivers switched their auto insurance in search of a better deal, and all three ran advertising that offered to help drivers save more money.

-By Lavonne Kuykendall, Dow Jones Newswires; (312) 750-4141; lavonne.kuykendall@dowjones.com