Choosing a large, well-known insurance company comes with several benefits for driers. Along with nationwide availability, expanded policy options and discount opportunities, the largest auto insurance companies are also regularly rated on their customer service experience and financial strength by third-party agencies to ensure they can step in during the insurance claims process. Having access to this information can be extremely helpful when narrowing down the options while shopping for auto insurance.
Bankrate reviewed the most recent National Association of Insurance Commissioners (NAIC) report to determine the largest car insurance carriers by market share. We also considered ratings from industry experts, such as J.D. Power for customer satisfaction and AM Best, which assesses financial stability.
What are the largest auto insurance companies?
The largest auto insurers are determined by their direct premiums written in 2020. Using the most recent NAIC data, these are the 10 largest auto insurance companies in the U.S.:
| Company | J.D. Power score | Average annual minimum coverage premium | Average annual full coverage premium | Market share |
|---|---|---|---|---|
| State Farm | 892/1,000 | $539 | $1,457 | 16% |
| Geico | 881/1,000 | $433 | $1,405 | 14% |
| Progressive | 862/1,000 | $582 | $1,509 | 13% |
| Allstate | 870/1,000 | $696 | $1,921 | 9% |
| USAA* | 909/1,000 | $384 | $1,225 | 6% |
| Liberty Mutual | 876/1,000 | Rates not available | Rates not available | 5% |
| Farmers | 893/1,000 | $808 | $2,000 | 4% |
| Nationwide | 876/1,000 | $501 | $1,485 | 2% |
| American Family | 889/1,000 | $918 | $1,911 | 2% |
| Travelers | 871/1,000 | $469 | $1,325 | 2% |
*USAA does not qualify for official ranking with J.D. Power due to its eligibility restrictions.
State Farm
State Farm is the top auto insurance writer in the U.S., with the largest market share (16.2%) and nearly $40.4 million in direct premiums written in 2020. It ranks within the top 6 for customer satisfaction by J.D. Power and boasts an A++ (Superior) financial strength rating from AM Best. State Farm also offers excellent mobile tools to help policyholders with policy management and claim filing.
For your auto insurance policy, there are several coverage options available, including rental car insurance, travel expenses and roadside assistance. Plus, there are additional opportunities to save with State Farm’s exclusive discount programs, including its Drive Safe & Save and Steer Clear usage-based insurance programs. If you’re a college student, there are extra discounts you can take advantage of.
Geico
Owned by Berkshire Hathaway, Geico is a giant in the auto insurance industry and carries nearly 14% of U.S. market share, writing almost $34 million in direct premiums in 2020. While Geico ranks below average for customer satisfaction, the company has earned an A++ (Superior) financial strength rating from AM Best.
Geico is also known for its affordable rates, thanks to a variety of auto insurance discounts. If you are a veteran or member of the military, there are additional discounts, as well as savings for federal employees and members of other professional organizations. Geico offers comprehensive coverage options, too, including emergency road service, rental reimbursement and mechanical breakdown insurance.
Progressive
While Progressive earned the lowest customer service scores from J.D. Power amongst our top 10 auto insurers, Progressive still boasts the third-largest U.S. market share with over $33 million direct premiums written in 2020. Progressive carries an A+ (Superior) financial strength rating from AM Best, indicating that although their customer service may not be on par with other major insurers, the company has a history of taking care of its policyholders when they have auto claims.
Progressive is known for having robust policy options, such as pet insurance, golf cart coverage and even Segway insurance. Auto coverage includes personal injury protection (PIP), gap insurance and custom parts and equipment value. If you drive for Uber or Lyft, there is rideshare insurance available as well. If you bundle your homeowners insurance or renters insurance, Progressive will discount your auto insurance policy as well. There are also discounts for multiple vehicles and continuous insurance, in addition to special savings for teen drivers. Progressive also gives you extra opportunities to save through its Snapshot program and the Name Your Price Tool.
Allstate
Allstate offers above-average customer satisfaction scores from J.D. Power with an A+ (Superior) financial strength rating from AM Best. It has the fourth-largest market share with almost $26 million in direct premiums written in 2020. Allstate is a solid option for those looking to work with a local agent, but coverage is ample, too, with add-ons for sound system insurance, roadside coverage, rental reimbursement coverage and a personal umbrella policy.
For extra discounts, check out the available savings for multiple policies, good grades, safe driving and owning a new vehicle. Allstate also offers its eSmart discount and FullPay discounts. If your vehicle has extra safety features, like anti-lock and anti-theft devices, you may be able to save extra money off your premium each year.
USAA
USAA is consistently one of the top-rated auto insurers for customer service and satisfaction while also maintaining an A++ (Superior) financial strength rating from AM Best. It is also in the top five for largest market share, writing more than $15.7 million in direct premiums written in 2020. However, to benefit from USAA’s coverage, you must be a military member, veteran or a member of their family.
USAA designs its auto insurance around the needs of military members, offering extended benefits coverage, rental assistance and accident forgiveness. USAA also offers extra savings for defensive driving, driver training and multi-vehicle policies. Additional military-oriented discounts include annual mileage, military installation and vehicle storage discounts.
Liberty Mutual
Liberty Mutual receives mediocre customer satisfaction scores from J.D. Power, but it still has the sixth-largest market share with more than $11.8 million in direct premiums written in 2020. The carrier offers plenty of options for widespread coverage, including new car replacement, accident forgiveness, lifetime repair guarantee, gap coverage and original parts replacement.
Liberty Mutual is known for its exclusive protections for teachers, even offering teachers insurance for all of the teaching materials you store in your car. There are numerous ways to save on your premium, with discounts for online quotes, homeowners, military members, good students and vehicle safety features.
Farmers
While earning average customer satisfaction scores from J.D. Power, Farmers has the seventh largest market share, generating almost $10 million in direct premiums written in 2020, and carries an A- (Excellent) financial strength rating from AM Best. Farmers features coverage options for towing and roadside service, rideshare coverage, loss of use and Guaranteed Value protections.
Farmers may have more expensive rates compared to the other largest insurers, but they also offer many opportunities to reduce the premium. To help aid in these savings, discount options include savings for older vehicles and safe drivers. You can also bundle your home insurance, life insurance, business insurance, renters insurance and condo insurance to save even more money on each policy you have with Farmers.
Nationwide
Nationwide rates above-average for customer satisfaction from J.D. Power and ranks eighth for market share with more than $5.7 million in direct premiums written in 2020. It is an insurer worth considering for drivers with bad credit, offering extra discounts and creative coverage options to help keep costs down. Nationwide’s exclusive programs include gap coverage, accident forgiveness and a Vanishing Deductible, up to $500.
You may also save using its usage-based insurance programs SmartRide, SmartMiles and Safe Drivers, which all reward you for safe driving, whether it’s for low mileage or staying accident-free. With an A+ (Superior) financial strength rating from AM Best, Nationwide has a history of being able to reliably pay out claims. Be sure to take advantage of Nationwide’s On Your Side Review to help you pay the best rates for your policy each year.
American Family
American Family receives below-average customer satisfaction scores from J.D. Power, but it still maintains the ninth-largest market share with nearly $5.2 million in direct premiums written in 2020. Classic car insurance is available for your vintage vehicle, in addition to gap coverage, emergency road service and accidental death and dismemberment coverage.
American Family also gives you several ways to reduce your premium, including multi-vehicle, loyalty, early bird, multi-policy and safe driver discounts. If you maintain low annual mileage, you could earn additional savings. American Family also has discounts for young drivers, including teen drivers, young volunteers and generational savings programs.
Travelers
Travelers is another national carrier with below-average customer satisfaction scores from J.D. Power, but it reigns among the top-rated insurers by AM Best with an A++ (Superior) rating for financial strength. It just makes the top ten largest insurance companies with nearly $5 million in direct premiums written in 2020.
As an auto insurer, Travelers offers accident coverage, crucial protections for new car owners, such as loan/lease gap insurance, rental coverage, roadside assistance, new car replacement and accident forgiveness. Discounts are plentiful and transparent, with Travelers publishing the exact discounts for its saving incentive on its corporate website.
Why should I pick a large car insurance company?
There are a few factors worth considering to help you find the right car insurance company for your needs. The benefits of a large auto insurer are many since they have vast resources to offer.
With more premiums written and a greater surplus, a large insurance company is often more financially stable than a smaller, regional carrier that is more limited in its scope. While some national carriers may have higher rates than regional insurers, they typically offer more discounts and savings programs that policyholders can use to lower their costs.
Large auto insurance companies also tend to offer extended customer service hours, sometimes even offering 24/7 instant support by phone and chat. Smaller companies typically do not have the resources to maintain these extended levels of customer support.
When it comes to whether a large insurance company or small company is better, it all depends on you and what you want in an auto insurer.
Benefits of choosing a large insurance company
| Pros | Cons |
|---|---|
| Generally more financially stable Might offer more discounts Faster customer service Faster claims processing |
Customer service can be delayed due to volume |
Frequently asked questions
What is the best car insurance company?
The best car insurance company for you depends on what you are looking for in an auto insurer. Taking into consideration financial strength, customer service ratings, available coverages and possible discounts are important when picking the right insurance company for you. Also consider the daily usage of your vehicle, especially if you drive for a service like Uber or Lyft, as you may want to find a car insurance company that also provides the right amount of insurance for your usage needs.
What do I need for a car insurance quote?
To get the most accurate quote, be sure to have on hand the full names of all drivers that will be listed on the policy, as well as their birthdays and driver’s license numbers. You’ll also need the year, make, model and vehicle identification number (VIN) of all your vehicles. Knowing what types of coverage you want can also help you review the quotes to ensure you’re comparing rates accurately.
How much car insurance coverage do I need?
One of the biggest questions that drivers have is how much car insurance you need. The coverage requirements for auto insurance vary by state, so consider talking to a licensed insurance agent about what coverage they offer and what coverage you need. Typically, most states require a minimum amount of liability insurance, and if you live in a no-fault state, you may also be required to purchase personal injury protection coverage. The Insurance Information Institute (Triple-I) recommends you purchase coverage beyond your state’s minimum requirements to ensure you are financially protected in the event of a large at-fault loss.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
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