10 Largest Auto Insurance Companies

A few key players dominate the U.S. auto insurance market, with approximately 72% of the market being held by the 10 largest companies.

These carriers can underwrite many policies. However, their pricing, service quality, and other characteristics vary. We compiled a list of 10 of the largest U.S. auto insurance companies and explained what each one offers.

Which are the biggest auto insurance companies?

When looking at the rankings of the top auto insurance companies in the United States, most of the names are recognizable due to their national television advertising campaigns.

State Farm is the number one auto insurer in the country by market share and written premiums. Geico, Progressive, and Allstate are close behind.

 

The 10 largest insurance companies offer a variety of insurance rates, customer service experiences, and other features. We recommend that shoppers seeking low rates compare quotes from several insurers in order to get the best deal.

Below is a list of the 10 largest U.S. insurers and more information about each one. To learn more about any particular insurer, click on the link in the table.

Rank Auto insurance company Premiums written ($bn) Market share
1 State Farm $41.1 16%
2 Geico $35.2 13%
3 Progressive $32.3 12%
4 Allstate $23.8 9%
5 USAA $15.2 6%
6 Liberty Mutual $12.1 5%
7 Farmers $10.7 4%
8 Nationwide $6.6 3%
9 American Family $5.8 2%
10 Travelers $5.5 2%

1.State Farm

State Farm is an excellent auto insurance company that offers a personal experience, low rates and a local agent.

  • Average six-month premium: $307
  • Market share: 16%
  • Written premiums: $41.1 bn
  • Rating ValuePenguin: 4/5
  • J.D. J.D.: 881

State Farm is the largest U.S. auto insurance company and holds 16% of total market share. State Farm is responsible for more than 15% of the private passenger automobile premiums in America.

The company employs around 60,000 people and has almost 19,000 agents. State Farm is a mutual insurance company. This means that its policyholders own it.

State Farm was one of the most widely available car insurance companies on this list. It offered the lowest car insurance rates in most areas of the U.S.

2. Geico

Geico is considered to be the best auto insurance company. Geico has low rates, availability across the country and an easy-to-use shopping experience.

  • Average six-month premium: $390
  • Market share: 13%
  • Written premiums$35.2 bn
  • Rating ValuePenguin: 4/5
  • J.D. J.D.: 871

Geico is well-known for its animated gecko advertisements. It has been an underwriter to over 16 million auto policies that insure more then 24 million vehicles. Because of its size, the company can employ more than 40,000. It has nine regional offices and three service centers.

Geico’s initial customer base was made up of U.S. military personnel and government employees. The customer base of the insurance company has expanded to include those in the private sector.

Geico, according to our analysis of the top auto insurance companies, is the best college student insurer.

3. Progressive

Drivers with prior accidents are eligible for Progressive’s most competitive rates. The coverage options and satisfaction ratings for claims are not high.

  • Average six-month premium: 394
  • Market share: 12%
  • Written premiums: $32.3 billion
  • ValuePenguin editor’s rating: 3/5
  • J.D. J.D.: 856

Progressive, the third-largest insurance company in the United States, was founded in 1937. You can purchase auto insurance online, in person or over the phone through Progressive. Customers can also sign up through independent agents.

It employs over 35,000 people, and it has more than 400 offices. Progressive is a publicly traded corporation.

4. Allstate

Allstate has higher rates but typically scores better than average in claims satisfaction. The insurer does offer discounts that may make policies more affordable.

  • Average six-month premiumPrice: $624
  • Market share: 9%
  • Written premiums$23.8 billion
  • ValuePenguin editor’s rating: 3/5
  • J.D. J.D.: 876

Allstate was founded in 1931 and is America’s second-largest publicly traded insurance company for property and casualty. Allstate, like State Farm has a network of agents that can help you. More than 46,000 employees are currently employed by the company.

Esurance, which is a subsidiary to Allstate, also operates in this space. Allstate claims that the Esurance brand is targeted at self-directed, brand-sensitive customers while Allstate is designed for customers who value personal and local service.

Allstate is the top pick in customer service on this list of largest car insurance companies.

5. USAA

USAA is a top-rated auto insurance company in the country. You’ll get extremely competitive rates, excellent customer service, and fast claims responses if you meet the qualification criteria. USAA has a restricted membership.

  • Average six-month premium: $223
  • Market share: 6%
  • Written premiums$15.2 Bn
  • ValuePenguin editor’s rating: 4.5/5
  • J.D. J.D.: 890

USAA was established in 1922 by 25 Army officers, who decided to insure their vehicles. The company today serves millions of military personnel, including former and current service members and their families, as well as cadets and midshipmen.

USAA’s headquarters is in San Antonio. The length of the corporate campus is three-quarters mile. USAA is San Antonio’s largest private company.

USAA is the top choice for military veterans and service personnel for car insurance.

6. Liberty Mutual

Liberty Mutual’s rates are more variable by location than the average insurer. Customers rate Liberty Mutual’s claims resolution process below average.

  • Average six-month premium: $627
  • Market share: 5%
  • Written premiums$12.1 bn
  • ValuePenguin editor’s rating3.5/5
  • J.D. J.D.: 867

Liberty Mutual, one of America’s largest insurance companies, has been in existence for more than 100 years. It also has a strong international presence with operations in 17 different countries. This international company offers life, property, and health insurance policies.

Liberty Mutual’s auto insurance products can be accessed through its website, call center, local Liberty Mutual agent/broker, or representatives from its regional subsidiaries. Liberty Mutual’s auto insurance coverage includes a guarantee of rates for one year.

7. Farmers

Farmers offers great discounts and coverage options, as well as excellent customer service. Farmers’ prices may not be competitive for everyone.

  • Average six-month premium: $553
  • Market share: 4%
  • Written premiums$10.7 billion
  • ValuePenguin editor’s rating: 4/5
  • J.D. J.D.: 872

Farmers was originally an insurance company that provided coverage for farmers’ vehicles. It has grown to be the country’s seventh largest insurance company.

Farmers is the only insurance company that offers more products. You can get basic auto insurance, pet insurance, and investment products. Farmers employs almost 13,000 people and underwrites more than 19,000,000 policies in 50 states.

8. Nationwide

Nationwide’s affordability is lower than average, and customer reviews tend towards the negative. Nationwide provides standard coverages and offers discounts that you would expect from a national insurer.

  • Average six-month premiumPrice: $466
  • Market share: 3%
  • Written premiums: $6.6 billion
  • ValuePenguin editor’s rating: 3.5/5
  • J.D. J.D.: 876

Nationwide operates in all 50 states of the United States and does business in many verticals, including financial services, personal lines, and commercial lines. Since 2000, Nationwide has donated more than $430 millions to non-profit organizations.

Nationwide’s motto is “On Your Side”, which influences how auto insurance claims and how premiums and policies are calculated. Nationwide recommends that policyholders have an annual checkup in order to understand their benefits, declarations, and any new discounts or changes. This will help to maintain adequate coverage and keep premiums stable. Nationwide refers to this review as the “On Your Side” review.

Nationwide is the top-rated car insurance company, and it offers the best deals to customers who want to bundle auto and home insurance policies.

9. American Family

American Family is a solid option for auto insurance. It offers reasonable rates that can be very affordable if policyholders take advantage of some of its discounts.

  • Average six-month premium: $387
  • Market share: 2%
  • Written premiums: $5.8 billion
  • ValuePenguin editor’s rating: 4/5
  • J.D. J.D.: 862

American Family was founded with the goal of insuring farmers. The company grew and started to insure non-farmers. The company is today one of the largest insurance companies in America and the largest by market share in Wisconsin.

Customers love the company’s extensive discount catalog, which can lower already low rates. American Family currently covers policies in 17 states.

10.Travelers

Travelers is a great choice for auto insurance coverage because of its moderate complaint rating and the availability of discounts.

  • Average six-month premium$623
  • Market share: 2%
  • Written premiums: $5.5 billion
  • ValuePenguin editor’s rating: 3.5/5
  • J.D. J.D.: 861

Travelers, which is over 160 years old today, is one of the oldest insurance firms in existence. Travelers was actually founded in 1897 and issued its first auto policy before the Ford Model T.

More than 30,000 people work for the company, and there are 13,500 independent brokers and agents in many countries, including Brazil and Canada.

Travelers has a rate pricing program called IntelliDrive. This determines your rates via an app that uses a smartphone to assess your safe driving habits. If you have good driving habits, IntelliDrive could reduce your annual insurance rate by up to 20%.

The top car insurance companies in each state

State Farm, which is the largest insurance company on our list, is the number one in 33 states and District of Columbia. Geico, which took the largest market share in 10 states, was the next most popular insurer after State Farm. Progressive was the largest auto insurance company in seven states and MAPFRE was in one.

Click on the link below to learn more about the top car insurance companies in your area.

The largest auto insurance companies in every state

State The largest insurer
Alabama State Farm
Alaska State Farm
Arizona Geico
Arkansas State Farm
California State Farm

Insurance companies: Big or small?

In order to improve customer service, large insurance companies will often trade off with smaller ones.

  • You will likely only communicate with one agent when you use a small company to insure your auto.
  • Although you may lose your personal connection to a major insurer when choosing one, the biggest companies have greater financial stability. These carriers actually underwrite and pay billions of dollars annually and often leverage their resources in order to offer lower rates for drivers.

If you select a policy from an inexperienced company, it may be necessary to worry about your financial stability. You can find a small insurance company that offers a good level of financial stability. Now think about how much you are willing to pay to get better service. A small company might be better for you if you are looking for great service.

Below is a comparison of the top 10 auto insurance companies based on AM Best’s financial strength rating.

Rating Insurers
A++/Superior State Farm, Geico, USAA
A+/Superior Progressive, Allstate Nationwide
A/Excellent Liberty Mutual, Farmers, Travelers, American Family

Also, consider the availability of coverage options and discounts. Although you may have a more personal experience with small insurance companies, they might not offer the same benefits or discounts as large insurance companies. The representatives of the largest and most well-known insurance companies are often available 24/7 to assist policyholders.

Insurance companies that offer mutual vs. stock coverage

The most important difference between stock and mutual insurance companies is their ownership structure. Stock insurance companies can be privately-owned or publicly-owned, and offer stockholders voting rights. However, mutual insurance companies are owned by their policyholders.

Stockholders are able to benefit from stock appreciation. However, some people feel that investors’ short-term interests may not always be in the best interest of the company. Mutual insurance companies are preferred because policyholders have a strong interest in the company’s success, including lowering insurance rates and exchanging dividends to increase customer numbers.

Below is a list of the 10 largest auto insurers by type.

Insurance companies that offer mutual insurance Stock insurance companies
State Farm Geico
Liberty Mutual Allstate
American Family Progressive
All over the country Farmers
Travelers

 

How to choose the right insurance company

It’s important to choose the right carrier for you, even though there are many large auto insurance companies. To find the best rates for you, we recommend that you compare quotes from several insurers.

Your quote will be affected by the type of auto insurance you choose, whether you want minimum or full coverage. It is helpful to have an idea of what coverages you would like before you buy one.

  • The minimum state requirements for auto insurance specify the minimum coverage required to insure your car.
  • To protect your vehicle from physical damage, full-coverage car insurance includes collision and comprehensive coverage.

We recommend that all drivers purchase full-coverage auto insurance, especially if their vehicle is valued at more than $3,000

Our tool is a quick and easy way to find multiple quotes for car insurance. Enter your ZIP code to get started.

You can also access free online quotes from many insurance companies through their websites. Or, you may want to work with an agent who can help you.

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