Utilizing market share is an undeniable method for ranking the leading car insurance carriers in the US. The number of policies they sold last year is a factual statistic, rather than a subjective opinion. Size serves as a definitive indicator of popularity. Selling policies in substantial volumes can only be achieved through consistent adherence to high industry standards, providing good coverage at reasonable prices and efficiently processing claims.
The following list presents the largest vehicle insurance companies, organized based on their market share. The table also offers additional details concerning claims and customer satisfaction.
In the car insurance market, a small number of major players hold significant control, with the top 4 companies alone commanding 53% of the national market share. When considering the top 10 companies collectively, their market dominance extends to 75%. Despite the presence of over 200 automobile insurers in the US, as reported by J.D. Power, this concentration of market share persists across the majority of states.
Size provides people with comfort for multiple reasons and facilitates the comparison of vehicle insurance companies based on objective criteria. Firstly, the enduring financial stability of these insurers has played a pivotal role in their current standing. Secondly, motorists find reassurance in the fact that millions of others have chosen these companies before them. Many drivers can easily name a few car insurers from the top 10, as they are renowned, invest heavily in advertising, boast a century of establishment, and have garnered an impressive following of policyholders.
Table: List of Largest Auto Insurance Companies in the US by Market Share
| Rank | Insurance Group/Company | Direct Written Premium $B | Market Share % | J.D. Power Claims Ratings | Customer Score 100 |
|---|---|---|---|---|---|
| 1 | State Farm Mutual Automobile Ins. | 44.4 | 16 | better than most | 85 |
| 2 | Berkshire Hathaway Inc. (GEICO) | 33.9 | 14 | about average | 83 |
| 3 | Progressive Corp. | 33.2 | 13 | about average | 82 |
| 4 | Allstate Corp. | 25.9 | 10 | about average | 81 |
| 5 | USAA Ins. Group | 15.8 | 6 | among the best | 93 |
| 6 | Farmers Ins. Group | 12.2 | 5 | about average | 80 |
| 7 | Liberty Mutual | 11.8 | 5 | the rest | 81 |
| 8 | Nationwide Mutual Group | 5.8 | 2 | about average | 83 |
| 9 | American Family Mutual | 5.2 | 2 | better than most | 83 |
| 10 | Travelers Inc. | 4.9 | 2 | about average | 82 |
Sources: NAIC 2015 data, III, Nerdwallet, S&P Global Market Intelligence.
In recent years, the automobile insurance landscape has witnessed a notable progress from GEICO and Progressive. These companies have made swift advancements on the list and recently surpassed Allstate, securing the second and third positions. The above table presents a comprehensive array of vehicle insurers, highlighting the availability of numerous excellent alternatives for motorists concerned about factors such as quality, reliability, financial stability, and brand recognition.
It is important to acknowledge that there can be considerable variations in quotes, even among these reputable brands that meet high standards. Therefore, it is highly recommended to engage in thorough comparison shopping to explore and secure better prices.
Many drivers logically assume that being among the top ten car insurance companies in the country is indicative of their positive qualities. The significant number of auto insurance policies sold by larger carriers grants them substantial advantages through economies of scale, placing them at the forefront of the industry.
This enables them to attract and retain top talent, invest in advanced infrastructure to gather detailed information, and provide precise pricing. As a result, they often offer superior coverage, more affordable policies, expedited customer service, and efficient claim settlement processes.
To maintain and strengthen their position, the largest automobile insurance companies heavily invest in advertising. This often restricts smaller participants from accessing prime advertising spots. Additionally, these major insurers possess the most extensive network of agents, effectively dominating the high street market.
While smaller operators may face challenges in competing directly with the larger insurers, they often thrive by placing a strong emphasis on personal service, providing tailored products that cater to specific local needs, and actively supporting the local economy. In doing so, these smaller companies can offer unique value to their customers, thereby establishing their own distinct position in the market.
In essence, there are advantages to being covered by larger auto insurance carriers. However, it ultimately depends on your specific circumstances to determine the most suitable carrier for you. It is always recommended to conduct thorough research, gather information, and obtain multiple quotes. By doing so, you will gain valuable insights and find that the answer will become evident, guiding you towards the right choice.