Using market share is an indisputable way of ranking the leading auto insurance carriers in the US. How many automobile policies they sold last year is a matter of statistics (not opinion). Size is a pretty good indicator of an insurer’s popularity. They can only sell policies in large volumes if they do most things right consistently, like offering good coverage at reasonable prices and paying claims with minimum fuss. Below list of largest car insurance companies is based on their market share. The table also provides further information on claims and customer satisfaction.
Many people may make car insurance company comparison largely based on size. Sizeable insurers make people more comfortable for several good reasons. For one, they wouldn’t be where they are if they weren’t solid financially for many years. Secondly, people take comfort from the fact that millions of other people have chosen these carriers before them. Here are a few more facts about the top ten largest vehicle insurance companies in the US;
Large companies dominate automobile insurance market, with the top 5 insurers controlling more than 50% of the national market and the top 10 controlling 70%. This is largely the case in most states too.
Most people would be able to count a few of the names in the top 10 without much thinking as these companies are well known, spend large sums on advertisement, well established for nearly 100 years each and they have good policyholder following. That is why they don’t need introduction. The positions on the table below may change slightly but it is difficult for another company to break into ranks considering how well these insurers cornered the market.
Table: List of Largest Auto Insurance Companies in the US by Market Share
|Rank||Insurance Group/Company||Direct Written
|1||State Farm Mutual Automobile Ins.||36,545,896||18.3||better than most||85|
|2||Berkshire Hathaway Inc. (GEICO)||22,808,382||11.4||about average||83|
|3||Allstate Corp.||20,036,973||10.0||about average||81|
|4||Progressive Corp.||17,518,721||8.8||about average||82|
|5||USAA Insurance Group||10,562,100||5.3||among the best||93|
|6||Farmers Insurance Group||9,985,969||5.0||about average||80|
|7||Liberty Mutual||9,942,667||5.0||the rest||81|
|8||Nationwide Mutual Group||7,468,708||3.7||about average||83|
|9||American Family Mutual||3,694,271||1.9||better than most||83|
|10||Travelers Companies Inc.||3,377,404||1.7||about average||82|
In recent years, one of the most notable changes in the list is the progress of GEICO. This insurer has been moving fast on the list and recently overtook Allstate to take the second place. The table above shows a good selection of companies for people who are worried they cannot find an insurer as good as their current expensive provider. Make no mistake that quotes can be substantially different even between these reputable enough companies by any standard. That is why shopping for car insurance is highly recommended.
Are the Largest Insurance Providers Also the Best?
A logical assumption made by many people is that being one of the leading car insurance carriers in the country is a testament to a company’s positive attributes. So, people believe when these companies claim to be the cheapest and best. And in most cases it is true that they offer the most innovative, comprehensive and reliable coverage. Their prices aren’t bad either especially if you are a low risk driver.
The good thing is that we provided customer and claims satisfaction data for each of these companies. You can use our quote platform above to get quotes from some of these companies and use this post to choose your insurer. This doesn’t mean that you should choose one of these insurers. It is perfectly plausible that a hardly known local company is the best fit for your current circumstances.
The best auto insurance companies are those that can provide a satisfying combination of good coverage options, great customer service, no fuss claim settlements, strong financial standing and competitive pricing.
No doubt about it that the biggest car insurance companies are good but they may not be the best, especially for high risk auto insurance. The biggest companies are known to be distant to high risk drivers. They can also be inflexible with claims and difficult to work with. From time to time we hear stories of one of the large insurance company lawyers coming heavy on policyholders with claims. Unfortunately, being big also facilitates employing the best lawyers. That is why choosing an insurer isn’t always clear-cut and you may need to take the bad with the good.
There are many ways of listing companies, including value for money, claim satisfaction and customer service. However, most of these listings are based on opinion that is open to dispute. For example, some say that mutual insurers are the best value car insurance companies. Here is another list and you are welcome to dispute it. No matter how one sided it may be it is always an eye opener to read other reviews and first hand policyholder experiences.
If you look around our site you will find that we have a few more articles on ranking automobile insurers based on different qualities including customer satisfaction and claims settlement records. Have a good look around to find out more, get a few tips and perhaps get quotes on our platform. This is a great way of making sure that you get all the security of a reliable insurer, great coverage and cheap prices.
What Separates These Biggest Insurers from the Rest?
According to J.D. Power, there are over 200 vehicle insurance companies in the US. However, it is fair to say that the 10 biggest auto insurance companies cream off the market in many ways. First of all, 10 companies collect 70% of premiums. This alone gives them huge financial power.
In addition, these companies are known to cream off the best policyholders. All of them offer great rates for good drivers. But they are usually quick to turn down high-risk drivers or offer them very high quotes.
Considering the number of policies they sell they hugely benefit from economies of scale that puts them ahead of the rest. In other words, they can afford to employ the best people, have the most advanced infrastructure that gathers highly detailed information and delivers laser sharp pricing. This usually translates into better coverage, cheaper policies, faster customer service and claim settlement.
These advantages and future progress of insurers are summarised well by Richard Attanasio, vice president of property/casualty ratings for A.M. Best;
Branding and marketing are important considerations in this highly competitive market. Predictive analytics and data segmentation (big data) will become increasingly important for auto insurers.
These companies heavily advertise to maintain and further their position. The largest automobile insurance companies above price smaller companies out of prime advertising spots. These are also, the carriers with the biggest network of agents that corner the high street.
Predictive analytics and data segmentation is now more important than ever. Companies don’t just look at past claim history anymore but they try to predict who is more likely to make a claim and who is not. Larger companies are almost always one step ahead when it comes to using the latest solutions. That is why they can price the risk better and increase their profits or tighten the screw on competition.
Data segmentation is a great tool for companies to make the most of information available to them. It can allow them to differentiate the market or even allow auto insurance price optimization. In both cases, companies make more money from the same pool of applicants and policyholders.
In short, being the biggest or being insured by the leading insurers has its advantages and shortcomings. In most cases, your circumstances determine which type of carrier you should go with. Always, search for more, gather information and quotes and you will see that the answer will reveal itself.