US’s top ten auto insurance companies

The market is dominated by the US’s ten biggest auto insurance companies. See what makes them different from competitors in the industry in this article.

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1. US’s top ten auto insurance companies

2. Techniques used to determine which US auto insurance companies are the best

3. Is auto insurance required?

4. Why does auto insurance cost so much?

5. how can you locate the top auto insurance companies in the United States for your coverage needs?

According to the National Association of Insurance Commissioners (NAIC), the top 10 vehicle insurance companies in the US still control a majority of the country’s auto insurance policies, accounting for 77% of all policies. The amount represents a 14.5% rise from the previous year’s just over $213.1 billion in direct written premiums.

But even though a small number of powerful companies dominate the vehicle insurance market, these insurance behemoths nevertheless offer a wide range of goods, advantages, and services to its customers.

Insurance Business lists the biggest vehicle insurance providers in this article to provide consumers with an overview of the coverage provided by the nation’s major auto insurers. We will also provide you with an overview of the various policies offered by these insurers as well as an assessment of how well these businesses handle customer service. The US’s top ten auto insurance companies are shown below, sorted by market share.

US’s top ten auto insurance companies

1. State Farm

Market share: 16.8%

Direct premiums written: $46.7 billion

Shopping experience rating: 877 out of a 1,000-point scale

Claims satisfaction rating: 882 out of a 1,000-point scale

Financial strength: A++

With about 17% of the market, State Farm is the biggest auto insurance company in the United States. In direct written premiums, the amount is greater than $8 billion when compared to the insurer placed second. Drivers may also obtain State Farm policies with ease from anywhere in the nation thanks to the business’s network of more than 19,200 local agents—well, almost anywhere, as the company no longer writes coverage in Massachusetts and Rhode Island.

Regardless of the population, State Farm is renowned for providing rates that are lower than the industry average. Older people, policyholders with named teens, and even drivers with a history of accidents and speeding infractions fall under this category. Furthermore, you have access to a variety of savings alternatives, such as:

• Drive Safe & Save: By downloading the mobile app, you can reduce your yearly rates by up to 30%, contingent on how safely you drive.
• Steer Clear: This program allows young drivers or those under 25 to receive a 20% annual premium reduction if they have not had any moving infractions or at-fault accidents in the previous three years.

Policyholders may get quotations, pay premiums, and file claims using State Farm’s user-friendly website and mobile app, which contributes to the company’s excellent ranking in terms of both purchasing experience and claims satisfaction.

2. Progressive

Market share: 14%

Direct premiums written: $38.9 billion

Shopping experience rating: 853

Customer satisfaction rating: 861

Financial strength: A+

The second-biggest auto insurer in the country provides a wide range of coverages, some of which are unavailable from many of its rivals, such as gap insurance and veterinarian expenses coverage for animals hurt in collisions. Additionally, policyholders can alter policies to better fit their requirements thanks to this.

When it comes to yearly premiums, Progressive is in the center of the pack, but policyholders can take advantage of several discounts to lower costs. Among these is the Snapshot safe driver discount, which uses a mobile app to customize your rate depending on how you drive. However, the insurer’s customer experience and claims satisfaction score are below the industry average.

Based on market capitalization, Progressive is among the biggest insurance providers in the United States.

3. GEICO

Market share: 13.8%

Direct premiums written: $38.1 billion

Shopping experience rating: 857

Claims satisfaction rating: 874

Financial strength: A++

In addition to drivers with a spotless record, GEICO is renowned for providing affordable rates to drivers with bad credit, speeding tickets, and uninsured driving convictions. However, it is a somewhat costly choice for drivers with a history of DUIs.

A usage-based insurance program that can lower premiums for responsible drivers and accident forgiveness are just two of the beneficial extra features available to GEICO policyholders. Customers can acquire a quotation, track billing, and manage their policies online with this Berkshire Hathaway subsidiary thanks to its user-friendly website and strong mobile app.

All 50 states provide GEICO auto insurance policies. If you prefer dealing directly with agents, you might have trouble finding one depending on where you reside as the insurer does not have a large network of local agents.

4. Allstate

Market share: 10.8%

Direct premiums written: $29.6 billion

Shopping experience rating: 853

Claims satisfaction rating: 889

Financial strength: A++

One of the biggest auto insurance companies in the US, Allstate provides several beneficial coverage choices that are often unavailable from many of its rivals in the market, such as:

• Accident forgiveness
• Disappearing deductible
• Gap insurance
• New car replacement
• Rideshare insurance (in most states)

Additionally, Allstate offers a wide range of discount options, such as:

• If you sign your policy at least seven days before its effective date, you will receive an early signing discount.
• EZ pay plan discount: if you set up automatic withdrawal for premium payments;
• Responsible payer discount: if you did not receive any cancellation notifications for non-payment in the previous cycle
• eSmart discount: if you register for ePolicy and go paperless

Allstate’s above-average customer satisfaction rating is indicative of its strong claims-handling history. This assists in offsetting frequently higher auto insurance premiums than those of its rivals.

5. USAA

Market share: 5.9%

Direct premiums written: $16.4 billion

Shopping experience rating: 874

Claims satisfaction rating: 890

Financial strength: A++

Out of all the auto insurance providers on our list, USAA has some of the best ratings for both customer service and claim satisfaction. However, only veterans, active military personnel, and their close families are covered by the specialty insurer.

All drivers, including teenagers, older prople, and those engaged in traffic infractions and accidents, can benefit from the cheap rates offered by USAA. Its extensive range of savings enables policyholders to further reduce rates. In addition to providing the typical coverages available from other insurers, USAA also offers several high-quality add-ons, such as rideshare insurance, automobile replacement aid, and accident forgiveness.

Also, one of the greatest insurance firms in the US to work for is USAA.

6. Liberty Mutual

Market share: 4.9%

Direct premiums written: $13.7 billion

Shopping experience rating: 865

Claims satisfaction rating: 870

Financial strength: A

For drivers who would rather deal with an insurance company online rather than through an agent, Liberty Mutual is a fantastic choice. One advantage of selecting the mutual insurer for your auto insurance is that you get access to both its broad collection of coverage-related information written in plain language and its easy-to-use website. You can also manage your policy digitally by downloading the Liberty Mutual smartphone app. Among the primary explanations for the company’s ranking as the second-best large insurer on the list for shopping experience are these.

On the other hand, Liberty Mutual’s rates are comparatively higher than those of its competitors in the market, and its claims satisfaction rating is below average. To offset this, though, the insurance provides a plethora of coverage alternatives and savings to its clients, including a deductible that drops with each passing year without a claim.

7. Farmers

Market share: 4.6%

Direct premiums written: $12.6 billion

Shopping experience rating: 846

Claims satisfaction rating: 882

Financial strength: A

When compared to other leading auto insurance companies in the US, Farmers’ annual premiums are typically more expensive. Younger and older drivers pay much higher rates. Farmers also have one of the worst ratings for the shopping experience, despite being one of the best auto insurance in terms of claims satisfaction.

Aside from high premiums and comparison shopping for insurance, Farmers provides several coverages, including accident forgiveness and new car replacement, that could come in handy following a collision. Meanwhile, drivers for Uber and Lyft can expand their insurance with ridesharing insurance.

8. Travelers

Market share: 2.1%

Direct premiums written: $5.8 billion

Shopping experience rating: 848

Customer satisfaction rating: 854

Financial strength: A++

Among the many US auto insurance companies renowned for providing affordable rates is Travellers. For drivers with a history of DUIs, rates are likewise comparatively low; however, adding a teenage driver can increase quotes.

There are numerous coverage options available to policyholders. One of the best things about Travellers’ coverage is that it forgives small infractions and accidents, and it has a usage-based insurance scheme that offers discounts to safe drivers. In certain states, Travellers provides ridesharing insurance as well. The insurer’s below-average ratings for customer service and claims satisfaction are another disadvantage.

In addition to auto insurance, Travellers is one of the top cyber insurers in the nation.

9. American Family

Market share: 2.1%

Direct premiums written: $5.8 billion

Shopping experience rating: 867

Claims satisfaction rating: 874

Financial strength: A

American Family offers above-average ratings for both shopping satisfaction and claims satisfaction. It also has a more extensive portfolio with OEM coverage, rideshare insurance, declining deductibles, and accident forgiveness, in comparison to many of its competitors in the sector. Several discounts are offered by American Family, like the KnowYourDrive program that lowers the percentage of safe drivers.

However, just 19 states offer American Family auto insurance. Additionally, its prices are higher than those of its rivals.

10. Nationwide

Market share: 2%

Direct premiums written: $5.5 billion

Shopping experience rating: 861

Claims satisfaction rating: 868

Financial strength: A+

Depending on the kind of driver you are, nationwide rates can be quite affordable. Like the majority of US auto insurance companies, Nationwide offers affordable rates to safe drivers with spotless records. While drivers with bad credit might also receive lower rates, those with a DUI will pay higher premiums. Nationwide generally charges higher rates than the majority of its rivals.

On the other hand, the insurer offers a comprehensive list of coverages and practical extras. These alternatives include pay-per-mile and usage-based plans for individuals looking to cut their insurance expenses. Nationwide’s claims satisfaction rating is a little low, but their shopping experience score is comparable to the industry average. Additionally, Nationwide’s auto insurance plans are not offered everywhere. Massachusetts, Hawaii, Alaska, and Louisiana are the states where it does not sell policies.

Techniques used to determine which US auto insurance companies are the best

The most recent market share data that NAIC published is the basis for the rankings. The order of each company’s direct written premiums on the list is based on its overall market share. We have included the results of J.D. Power’s most current insurance shopping experience and claims satisfaction survey to help readers better understand the kind of service each vehicle insurer offers. A.M. Best’s ratings of the companies’ financial strength were also mentioned.

This is a list of the top ten auto insurance companies in the United States.

Is auto insurance required?

To be able to legally drive a car, a driver must have auto insurance in almost all states. New Hampshire is the lone outlier. If you are found driving without insurance, you may face severe penalties and lose your ability to get insurance in the future.

Even while there are certain commonalities, each state has its requirements for the kinds of coverage. According to the Insurance Information Institute, drivers must obtain most of the policies listed in the table below (Triple-I).

Why does auto insurance cost so much?

The risks you take as a driver will determine whether your auto insurance rates are on the higher or lower side. Car insurance companies consider several factors to determine how much a driver should pay in premiums, including:

• A person’s age
• A person’s gender
• Where a person lives
• A person’s driving record
• Mileage
• Vehicle type
• A person’s credit rating
• Level of coverage

The average yearly and monthly full and minimal coverage premiums from a few of the biggest auto insurance providers in the country are displayed in the table below, sorted by market share.

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