There are several benefits to choosing a large car insurance company for your auto insurance policy. There’s often extended customer service, nationwide availability and expansive discount programs. Plus, with national advertising campaigns, it’s pretty hard to miss providers like State Farm, Allstate and Geico, who are known for their catchy slogans or creative mascots. While smaller companies may be able to deliver personalized service, the options for coverage and resources often tend to be limited.
To determine the largest market share of each car insurance carrier, we look to the most recent reporting from the National Association of Insurance Commissioners (NAIC) for annual market share. We also consider ratings from industry experts, such as J.D. Power for customer satisfaction and AM Best, which judges financial stability. Financial reliability is critical because it signals how efficient and reliable a company will be when it comes to claims processing and payouts.
Based on our analysis, here’s what you need to know about the largest auto insurance companies in the U.S. for 2021.
What are the largest auto insurance companies?
The largest auto insurance companies are determined by a few factors:
- The number of annual direct premiums written
- The number of annual direct premiums earned
- The value of annual direct premiums written
Using the most recent data from the NAIC, these are the largest auto insurance companies in 2021:
|Company||J.D. Power score||Average annual minimum coverage premium||Average annual full coverage premium||Market share|
|Liberty Mutual||867/1000||Rates not available||Rates not available||5%|
State Farm is the largest car insurance company in the U.S., with the largest market share and nearly 40.9 million premiums written in 2019. It ranks within the top 6 for customer satisfaction and receives top scores from AM Best for financial stability, boasting an A++ (Superior) rating. It is also a company known for excellent mobile tools to help policyholders with policy management and filing a claim.
For your auto insurance policy, there are several options for coverage, 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 programs. Plus, if you’re a college student, there are a bunch of extra discounts you can take advantage of.
Owned by Berkshire Hathaway, Geico is a giant in the auto insurance industry that owns 14% of the market share, writing almost 35 million policies in 2019 alone. It only ranks about average for customer satisfaction, but AM Best awards it an A++ (Superior) rating for financial strength.
Geico is also known for its affordability, thanks to a long list of auto insurance discounts. An airbag discount can earn you up to 40% off your premium, while good drivers and new cars may receive discounted insurance as well. 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. Coverage is great, too, with options for personal injury protection (PIP), emergency road service, rental reimbursement and mechanical breakdown insurance.
Among the lowest for customer satisfaction, Progressive still boasts the third-largest market share with over 31 million direct premiums written. AM Best offers a rating of A+ (Superior) for financial strength, showing that although customer service may be lacking, Progressive carries through on its claims.
It’s a company known for having excellent coverage options, such as free pet insurance with your policy. Coverage also 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. 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 offers above-average customer satisfaction scores with an A+ (Superior) rating for financial strength from AM Best and the fourth-largest market share with over 23 million premiums. It’s an auto insurer that is best when you want local agents, but coverage is fantastic, too, with options 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 car. Allstate also offers its eSmart discount and FullPay discounts. If your car has extra safety features, like anti-lock and anti-theft devices, you can save extra money off your premium each year.
USAA is consistently one of the top-rated providers for customer service and satisfaction while also maintaining an A++ (Superior) rating for financial strength from AM Best. It is also in the top five for largest market share, writing more than 15.2 million premiums in 2019. However, to benefit from USAA’s coverage, you must be a member of the military, veteran or their family.
USAA designs its car insurance around the needs of the military, 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 receives just mediocre scores for customer satisfaction, but it still has the sixth-largest market share with more than 11.7 million premiums in 2019. There are plenty of options for widespread coverage, including new car replacement, accident forgiveness, lifetime repair guarantee, gap coverage and original parts replacement.
It’s known for its exclusive protections for teachers, even offering teachers insurance for all of the teaching materials you store in your car. There are a bunch of ways to save on your premium, with discounts for online quotes, homeowners, military members, good students and vehicle safety features.
Falling about average for customer satisfaction, Farmers has the seventh market share with over 10.5 million premiums in 2019. However, it receives high scores from AM Best for financial strength, with an A- (Excellent) rating. Farmers has options for personal injury protection (PIP), towing and roadside service, rideshare coverage, loss of use and Guaranteed Value protections.
Farmers proudly says that you can save an average of $470 when you switch over your car insurance policy. To help aid in these savings, discount options include savings for older cars, safe drivers and high deductible discounts. You can also bundle your home insurance, life insurance, business insurance, renters insurance and condo insurance to save even more money each year.
Nationwide rates above-average for customer satisfaction and falls eighth for market share with more than 6.2 million direct premiums. It’s a provider that is great 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 can also save using its programs SmartRide, SmartMiles and Safe Drivers, which all reward you for safe driving, whether it’s for low mileage or staying accident-free. Plus, with an A+ (Superior) rating for financial strength from AM Best, you can count on Nationwide to pay out your claims quickly and reliably. Be sure to take advantage of Nationwide’s On Your Side® Review to ensure that you pay the best rates for your policy each year.
American Family receives below-average customer satisfaction scores, but it still maintains the ninth-largest market share with almost 5.8 million premiums written. Classic car insurance is available for your vintage vehicle, in addition to personal injury protection, gap coverage, emergency road service and accidental death and dismemberment coverage.
American Family also gives you several ways to save money on your premium, including multi-vehicle, loyalty, early bird, multi-policy and safe driver discounts. If you maintain a low mileage each year, that can earn you additional savings as well. American Family also has discounts for young drivers, including teen driver, young volunteer and generational savings programs.
Travelers is another provider with below-average customer satisfaction, but it reigns among the top-rated providers by AM Best with an A++ (Superior) rating for financial strength. It just makes the top ten largest insurance companies with nearly five million premiums written.
It’s a provider that is best for accident coverage, offering crucial protections for new car owners, such as personal injury protection, loan/lease gap insurance, rental coverage, roadside assistance, new car replacement and accident forgiveness. Discounts are plentiful, too, and transparent, with Travelers publishing the exact discounts for its saving incentive. For example, you can receive up to 15% off with the continuous insurance or paid-in-full discounts.
Why should I pick a large insurance company?
There are a few factors to consider that can help you find the right car insurance company for your needs. The benefits of a large insurance company are many since they have vast resources that to offer.
With more premiums written, a large insurance company is often more financially reliable and secure than a smaller, regional provider that is more limited in its scope. Premiums may be a little more expensive to pay for those national ad campaigns, but there are typically more discounts and savings programs that policyholders can use to lower those premiums.
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 just don’t have the resources to maintain these extended levels of customer support. However, just because a company is available, it doesn’t mean that service will be instant. Larger companies often have much longer wait times than smaller providers.
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 insurance provider.
Benefits of Choosing a Large Insurance Company
|Typically more financially stable
Can offer more discounts
Faster customer service
Faster claims processing
|Customer service can be delayed due to volume
May have higher premiums to pay for advertising
Big business rather than supporting small business
Frequently asked questions
What is the best car insurance company?
The best car insurance company for you depends on what you’re looking for. Taking into consideration financial strength, customer service ratings, available coverages and possible discounts is important when picking the right insurance company to take your business to.
Is car insurance required to drive?
One of the biggest questions that drivers have is how much car insurance you need. The minimum requirements for car insurance vary from state to state, so it’s critical that you research your state’s requirements and talk to your insurer about what coverage they can offer to meet them.
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.