Using market share is an indisputable way of ranking the leading automobile insurance carriers in the US. Number of policies they sold last year is a matter of statistics (not opinion). Size is a pretty clear indicator of popularity. They can only sell policies in big volumes if they do most things right consistently, like offering good coverage at reasonable prices and paying claims with minimum fuss.
The below list of the largest car insurance companies is based on their market share. The table also provides further information on claims and customer satisfaction.
Size makes people more comfortable for several good reasons and easier to compare auto insurance companies based on numbers. For one, those insurers wouldn’t be where they are if they weren’t solid financially for many years. Secondly, motorists take comfort from the fact that millions of others have chosen these before them. Here are a few facts;
Large names dominate the vehicle insurance market, with the top 5 controlling more than 50% of the national market and the top 10 managing 70%. This is the case in the majority of states too.
Many drivers would be able to count a few of the car insurers in the top 10 without much thinking as these are well known, spend huge sums on advertisement, well established for nearly 100 years each and they have admirable policyholder following. That is why they don’t need an introduction. The positions on the table below may change slightly but it is difficult for another one to break into ranks considering how well they cornered it.
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, one of the most notable changes in the list is the progress of GEICO and Progressive. They have been moving fast on the list and recently overtook Allstate to take the second and third places. The table above shows a decent selection of automobile insurers so it should be evident enough to know that there are plenty of great alternatives for motorists who are worried about quality, dependability, financial strength and recognition.
Make no mistake that quotes can be substantially different even between these brands, who are reputable enough by any standard. That is why shopping around for better prices is highly recommended.
Are the Largest Vehicle Insurance Providers Also the Best?
A logical assumption made by many drivers is that being in the top 10 in the country is a testament to their positive attributes. So, they believe when any of these declare to be the cheapest and best. And often it is true that one of the biggest car insurance companies offer the most innovative, comprehensive and reliable coverage. Their rates 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 them. You can use our platform above to get quotes from some of these brands. This doesn’t mean that you should choose exclusively from the list. It is perfectly plausible that a hardly known local outfit is more suitable 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 auto insurance companies are good but they are not always the right option, especially for high-risk coverage. They can also be inflexible with settlements and difficult to work with. From time to time we hear stories that lawyers of a powerhouse in the sector like above are coming heavy on policyholders with claims. Unfortunately, being big also facilitates employing the finest lawyers. That is why choices aren’t always clear-cut and you may need to take the bad with the good.
There are many ways of listing, including value for money, claim satisfaction and customer service. However, most of these are based on opinions that are open to dispute. For example, some say that mutuals offer best value car insurance. No matter how one sided it may be it is always an eye opener to read other reviews and first hand policyholder experiences.
Have a look around to find out more about each provider, get a few tips and perhaps get quotes. This is a great way of making sure that you get reliability, great coverage and cheap prices.
What Separates These Biggest Automobile Insurers from the Rest?
According to J.D. Power, there are over 200 of them in the US. However, it is fair to say that the 10 mentioned above cream off the market in many ways. First of all, they collect 70% of premiums. This alone gives them huge financial power. Arguably it can be a good or an evil thing. Not many aspire not to be evil.
In addition, they are known to cream off the lowest-risk policyholders. All of them offer great rates for experienced drivers with clean records. But they are usually quick to turn down higher-risk or offer them very expensive quotes. But several of them have subsidiaries that deal in that segment.
Considering the number of auto insurance 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 brightest people, have the most advanced infrastructure that gathers very detailed information and delivers laser sharp pricing. These usually translate into better coverage, cheaper policies, faster customer service and claim settlement.
These advantages and future progress 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 sector. Predictive analytics and data segmentation (big data) will become increasingly important for auto insurers.
They heavily advertise to maintain and further their position. The largest automobile insurance companies above price smaller participants out of prime advertising spots. They also have the most extensive network of agents that corner the high street. So, smaller operators cannot easily stand up to them but they can shine in other areas like personal service, specialist products and giving back to the local economy.
Predictive analytics and data segmentation is now more important than ever. Underwriters don’t just look at history but they try to predict who is likely to make a claim and who is not. Larger vehicle insurance companies are generally 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 making the most of information available. It can allow differentiating or even price optimization. In both cases, they make more money from the same pool of applicants and policyholders. Simply, it is an efficient way of doing things.
In short, being or being covered by the biggest has its advantages and shortcomings. Essentially, 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.