- We establish the top 10 biggest car insurance companies based on market share and annual policies.
- We give a brief summary of each insurer, highlighting their strengths and weaknesses.
- Choosing the best insurer for you requires some careful consideration.
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Buying car insurance can be stressful, especially with all the insurers that are on the market. However, we’ve compiled information on the biggest car insurance companies so you have some sense of direction.
In this article, we’ll go over the largest car insurance companies available in the United States and provide an overview of these insurers and their policies. We’ve reviewed the best car insurance companies on the market, so we’re well-versed on what’s what in the auto insurance industry. If you’re interested in getting free, personalized quotes from our highest-rated providers, fill out the form below.
The 10 Biggest Car Insurance Companies
With so many options available in the auto insurance industry, shopping for coverage can be overwhelming. To make the information more digestible, we’re first going to discuss the 10 biggest car insurance companies in the United States, according to 2019 data from the National Association of Insurance Commissioners (NAIC).
| Biggest Car Insurance Companies | Premiums Written in 2019 | Market Share (%) | Our Overall Rating (%) |
|---|---|---|---|
| State Farm | 40,878,781,217 | 16.14 | 95 |
| GEICO | 34,892,003,836 | 13.78 | 96 |
| Progressive | 31,025,771,905 | 12.25 | 95 |
| Allstate | 23,626,742,688 | 9.33 | 90 |
| USAA | 15,231,169,153 | 6.01 | 96 |
| Liberty Mutual | 11,701,810,697 | 4.62 | 91 |
| Farmers | 10,533,343,298 | 4.16 | 88 |
| Nationwide | 6,245,587,637 | 2.47 | 89 |
| American Family | 5,776,711,158 | 2.28 | 87 |
| Travelers | 4,903,032,869 | 1.94 | 88 |
Who is the Largest Car Insurance Company?
The largest car insurance company is easily State Farm. It commands over 16 percent of the market share and wrote over 40 billion in premiums last year. It has also been the second largest life insurance company in the U.S. since 2016.
Who Are the Top Five Insurance Companies?
In descending order, the top five auto insurers by size are:
- State Farm
- GEICO
- Progressive
- Allstate
- USAA
All together, they make up over 57 percent of the total car insurance market.
A Closer Look at the Biggest Car Insurance Companies
Let’s explore the key elements of each of the 10 biggest car insurance companies, including industry standing, availability, affordability, and coverage.
1. State Farm: Best for Student Drivers
State Farm is the biggest auto insurance company in the U.S. In our research, we’ve noted its financial strength and discounts for students. The company also has great customer service ratings. According to the NAIC, State Farm had 1,522 complaints in 2019, which is above average for an insurer, but State Farm commands more of the market than any other provider.
AM Best financial strength rating: A++
State availability: 48 states
Affordability: Competitive prices and more than 10 discounts, including a 25-percent discount for students
Coverage: Six standard coverage options as well as optional rideshare, rental car, and sports car and classic coverage
| Pros | Cons |
|---|---|
| Strong industry standing | Limited tech options |
| Insurance for classic and antique cars | Reported claims filing issues |
| Loyalty and multi-policy discounts |
To learn more information, read our complete State Farm auto insurance review.
2. GEICO: Best Overall
The second on our list of biggest car insurance companies, GEICO ranks well across the board. It’s available wherever you go, and it’s made the insurance process even easier with the GEICO mobile app. Along with the standard types of car insurance, you can get extras like mechanical breakdown insurance (MBI), which is similar to an extended car warranty.
AM Best financial strength rating: A++
State availability: 50 states
Affordability: Very affordable coverage with more than 15 discounts and a coverage calculator
Coverage: Standard coverage plus optional roadside assistance, rental reimbursement, and MBI
| Pros | Cons |
|---|---|
| Access to agents 24/7 | Reports of slow claims processing |
| Discounts as high as 26 percent | Average or inconsistent customer service |
| Easy-to-use GEICO mobile app | |
| Strong industry standing | |
| Auto Repair Xpress (ARX) repair shops |
To learn more, read our complete GEICO auto insurance review.
3. Progressive: Best for High-Risk Drivers
Also available in every state, Progressive has a mobile app and an online quote tool to aid you in pricing out your insurance plan and your claims process alike. We like Progressive’s variety of discounts, including those for teen and student drivers. However, customers have reported their claims process with the insurer to be just average.
AM Best financial strength rating: A+
State availability: 50 states
Affordability: Competitive prices and two major savings programs (Snapshot and a deductible savings bank)
Coverage: Standard coverage as well as optional rental car reimbursement, loan/lease payoff, and complementary pet coverage
| Pros | Cons |
|---|---|
| Variety of online tools | Reported rate increases |
| Usage-based plans | Average customer service |
| Safe driving discounts | |
| Teen/student discounts | |
| Special coverage options |
To learn more, read our complete Progressive auto insurance review.
4. Allstate
The fourth biggest car insurance company, Allstate has a track record of being expensive, yet comprehensive. While we like its coverage options, especially for those who drive for Uber or Lyft, be prepared to pay for it. Allstate has higher prices than many of the biggest car insurance companies.
AM Best financial strength rating: A+
State availability: 50 states
Affordability: Tends to be expensive with few discounts
Coverage: Standard coverage as well as optional rideshare insurance, classic car insurance, and custom parts coverage
| Pros | Cons |
|---|---|
| Drivewise program | High premium prices |
| Support from local agents | Few discounts |
| Strong financial rating | Rates may increase over time |
| Rideshare coverage |
5. USAA: Best for Military Families
USAA is one of our highest-ranking car insurers, but it’s only available to military members and their families. It’s known for its excellent claims servicing experience, accident forgiveness program, and low policy prices.
AM Best financial strength rating: A++
State availability: 50 states
Affordability: Very affordable coverage and about 10 discounts, including a 15-percent discount for military servicemen
Coverage: Standard coverage plus rideshare coverage, roadside assistance, and rental car reimbursement
| Pros | Cons |
|---|---|
| Accident forgiveness | Membership limitations |
| Flexible payment plans | Limited coverage in some states |
| Great claims service | No brick-and-mortar locations |
| Mobile app | |
| Bundling options |
To learn more information, read our full USAA car insurance review.
6. Liberty Mutual: Best for New Drivers
We recommend Liberty Mutual for students and new drivers. Not only does it provide great discounts but also educational tools to build safe driving habits. However, Liberty Mutual is middle-of-the-road for prices, especially with reported frequent rate increases for policyholders.
AM Best financial strength rating: A
State availability: 50 states
Affordability: Average prices with quite a few discounts for new and student drivers
Coverage: Standard coverage as well as accident forgiveness, rental car reimbursement, and other unique coverage options
| Pros | Cons |
|---|---|
| Discounts for teen drivers | Higher premiums |
| Variety of coverage options | Frequent rate increases |
| Special coverage for teachers | Slow customer service |
| Many add-ons |
To learn more information, read our full Liberty Mutual auto insurance review.
7. Farmers
We like Farmers’ non-standard coverage add-ons and bundling options, but customers have reported increasing rates and average service. However, Farmers might be a more affordable option if you’re dealing with a low credit score. The insurer also has a highly-rated mobile app that lets you manage your policy on the go.
AM Best financial strength rating: A
State availability: 50 states
Affordability: Tends to be expensive with discounts varying by state
Coverage: Standard coverage plus towing and roadside service, rental reimbursement, and rideshare coverage
| Pros | Cons |
|---|---|
| Bundling options | High number of complaints |
| Easy-to-access quotes | Expensive |
| Many discounts, including a safe driving app | |
| May be more affordable for those with low credit scores |
To learn more information, read our full Farmers auto insurance review.
8. Nationwide
Based on our research into the biggest car insurance companies, Nationwide is a good choice for coverage. According to the 2019 J.D. Power U.S. Auto Claims Satisfaction Study, Nationwide is considered “average.” The highlight of Nationwide auto insurance, however, is its SmartRide program. A usage-based discount program, SmartRide gives you instructions for safer driving habits and could lead to discounts up to 40 percent.
AM Best financial strength rating: A+
State availability: 47 states
Affordability: Average prices with many discounts, but excludes a new driver or military discount perk
Coverage: Standard coverage alongside accident forgiveness, roadside assistance, and gap coverage
| Pros | Cons |
|---|---|
| SmartRide program | Inconsistent customer service |
| Vanishing deductible options | Higher rates for those with poor driving records |
| Accident forgiveness for first collision |
9. American Family
American Family is a great choice for bundling with an almost 30-percent discount for those with more than one policy. However, According to the J.D. Auto Claims Satisfaction Study, American Family is considered “average,” but on the lower end of average at that. It’s also only available in 19 states, all of which are mainly concentrated in the Midwest and California. If you’re on the East Coast, you should look for other options among the biggest car insurance companies.
AM Best financial strength rating: A
State availability: 19
Affordability: Competitive rates with good discounts for bundling
Coverage: Standard coverage and optional classic car insurance, commercial car insurance, and rideshare insurance
| Pros | Cons |
|---|---|
| High bundling discount | Particularly limited availability |
| Rideshare coverage | Average customer satisfaction |
| Online chat resource |
10. Travelers
No. 10 on the list of biggest car insurance companies is Travelers. It’s received a superb ranking from AM Best, indicating strong financial stability. Travelers also offers the IntelliDrive program, which rewards drivers based on their safe driving habits. However, online user experiences with Travelers have been mixed.
AM Best financial strength rating: A++
State availability: 43 states
Affordability: Average prices with many discount options (but most are below 15 percent)
Coverage: Standard coverage as well as optional plans like accident forgiveness, gap insurance, and roadside assistance
| Pros | Cons |
|---|---|
| Superior financial strength | Low-rated mobile app |
| Usage-based discounts | Limited state availability |
| Not many discounts |
How to Choose the Best Insurer For You
Now that we’ve reviewed the biggest car insurance companies in the business, you should consider what you’re looking for in an auto insurer. There are pros and cons that come along with every coverage option, so let’s discuss your insurance priorities.
There are some big insurers on this list. State Farm, GEICO, and Progressive account for over 40 percent of the market alone. With bigger companies like these, you’re granted financial stability and lower premiums, but would you prefer to work with a smaller, local provider? Sometimes it can be hard to beat the customer service of a small company, but you will miss out on valuable perks and, in some cases, lower prices because the companies may not have the same financial bargaining chips as leading insurers.
Once you know what you’re looking for, make sure to get a quote from more than one company. You can start getting free, personalized quotes from our top choices for auto insurance by entering your zip code below.
Original article: The Top 10 Biggest Car Insurance Companies (2020)
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