The Top Ten Largest Auto Insurance Companies in U.S. of 2019
The auto insurance market in the U.S. is dominated by a few key players. Actually, the top ten auto insurance companies control over 72% of the market. While the top ten insurance companies underwrite a large number of policies, they have very distinct characteristics. To help you choose the best insurance agency for your situation, we created a list of the best 10 largest auto insurance companies in the U.S.
What 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 TV advertising campaigns. The top 10 insurance agencies offer varied insurance rates, client cases experience and features. We talk about the top ten largest auto insurance companies in the U.S. and what you should know about every one of them below:
Largest Auto Insurance Companies
1. State Farm
State Farm operates as a mutual insurance agency, meaning that it’s owned by its policyholders. State Farm is the largest auto insurance company in the U.S. and possesses 18% of the total available market share. Nearly one in five dollars spent on private passenger auto premiums in the U.S. is paid to State Farm. The company currently employs approximately 70,000 employees and has almost 19,000 agents. In accordance with its large market share, State Farm’s latest annual report shows a net gain of over $1.7 billion.
Our Thoughts: State Farm is a best auto insurance company for anyone who needs a local agent and a personalized insurance experience. However, State Farm doesn’t normally offer drivers the most competitive rates. If you want or need a curated experience, and are willing to pay for it, State Farm is a great choice.
GEICO, well known for its animated gecko, has served as an underwriter to more than 16 million auto policies, which insure more than 24 million vehicles. The company’s size allows it to employ more than 36,000 people across nine regional offices, three service centers and three claims centers. GEICO’s original customer base consisted of U.S. government employees and military personnel. Today, the insurance agency’s client base has extended to include people in the private sector.
Our Thoughts: We consider GEICO to be one of the best auto insurance companies. GEICO offers low rates, national availability and a simple shopping experience. If you’ve had a prior accident, however, you’ll likely receive unfavorable rates from GEICO.
Progressive—the third biggest insurance agency in the country-was established in 1937. The company offers the ability to purchase auto insurance directly, online or by telephone. Alternatively, customer can join through independent insurance agents. The company employs more than 33,000 people and has more than 400 offices. Progressive is a publicly traded company.
Our Thoughts: Progressive offers highly competitive rates to drivers with previous accident. However, claims satisfaction rating and coverage options are average at best. Because of this, we recommend for prospective Progressive clients to shop around and compare rates before signing up for coverage.
Established in 1931, Allstate is the second biggest publicly traded property and casualty insurance agency in America. Like State Farm, Allstate has a roster of local agents ready to serve your needs. The company presently employs more than 79,000 people. Esurance, a subsidiary of Allstate, works in a same space. According to Allstate, the Esurance brand is targeted towards self-directed and brand-sensitive clients while Allstate is geared for clients who enjoy local and personal service.
Our Thoughts: We consider Allstate to be a widely appealing insurance agency because of its high rates and average claims satisfaction ratings. Allstate’s redeeming factors are the wide variety of discounts that it makes available to its clients.
USAA was established by 25 Army officials who decided to insure each other’s vehicles in 1922. Today, the company serves millions of members associated with the U.S. military, including:
- Current Military Members
- Former Military Members
- Family of Military Members
- Cadets or Midshipmen
USAA is headquartered in San Antonio, Texas. The corporate campus’ length extends three-quarters (75%) of a mile. USAA is the biggest private company located in San Antonio.
Our Thoughts: USAA is one of the best auto insurance companies in the country. If you meet their qualification criteria, you’ll enjoy competitive rates, great client care and fast claims responses. The only downside of USAA is its restricted membership.
6. Liberty Mutual
Liberty Mutual is one of the top insurance agencies in the U.S. and has been around for more than 100 years. Liberty Mutual also has large international presence—with operations in 17 countries. The international companies sell property and casualty, health and life insurance policies. The auto insurance industry is a large part of Liberty Mutual’s business, representing 36% of their net written premium from insurance as of their latest annual report.
Our Thoughts: Liberty Mutual is a mediocre insurance agency. The competitiveness of Liberty Mutual’s car insurance rates will depend on your geographic location. While this is often true with most insurers, Liberty Mutual’s rates very more than typical. In addition, Liberty Mutual’s clients rank the insurance agency’s claims satisfaction process as below average.
Farmers started as an insurance agency providing coverage to rural farmers’ vehicles. Since then it has evolved to become the seventh biggest insurance agency in the country. It’s hard to find an insurance agency that offers more products than Farmers. It offers basic auto insurance, pet insurance, and even investment products among a variety of other insurance products. Farmers employ almost 21,000 people, which allow it to underwrite more than 19 million policies across 50 states.
Our Thoughts: Farmers offers decent discount, coverage options and great client care. Eventually, Farmers’ non-competitive rates hold it back from becoming a great auto insurance company.
Nationwide, a Fortune 100 company, paid over $18 billion in claims and different benefits to members in 2017. The company does business across several verticals—including financial services, commercial lines and personal lines—in all 50 U.S. states. Nationwide has contributed over $430 million to nonprofit organizations since 2000.
Our Thoughts: Despite Nationwide not being the most affordable insurance agency, its client reviews tend to be positive. The company offers clients the standard coverage and discounts that you’d expect from a large national insurance agency.
Travelers is over 160 years old, making it one of the oldest insurance agencies operating today. In fact, Travelers issued its first auto insurance policy in 1897, before the Ford Model-T was invented. The company has more than 30,000 employees and 13,500 independent agents and brokers in multiple countries—including the United States, Canada, and Brazil.
Our Thoughts: Moderate complaint ratings and competitive rates make Travelers a great choice for auto insurance coverage. Specifically, Travelers offers great rates for families with clean driving histories. However, drivers with previous accidents and violations should steer clear as Travelers’ rates rise significantly with an accident on record.
10. American Family
American Family was built up with the initial goal of insuring farmers. During the 1930’s, the company extended and started to focus on insuring non-farmers as well. Today, the company is one of the biggest insurance agencies in the U.S. In a recent year, American Family paid out over $3 billion in home, auto and umbrella insurance claims.
Our Thoughts: American Family is a solid choice for your auto insurance needs. The company offers decent rates, which have the potential to be great when policyholders utilized some of its many discounts.