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Largest home insurance companies
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It can be advantageous to choose a national level insurance provider. To help you on your home insurance shopping journey, Bankrate’s insurance editorial team compiled a list of the largest home insurance companies in the U.S. and highlighted some of the pros and cons of each. In many cases, national insurance providers have more robust product offerings than smaller companies. Our overview can help you decide if these product offerings are important for your unique insurance needs.
Key takeaways
- The largest home insurance companies include State Farm, Allstate and Liberty Mutual.
- Large homeowners insurance companies may be more widely available and have perks like a mobile app or 24/7 customer service.
- Considering a mix of large and small home insurance companies could help you find the right fit for your needs.
Largest home insurance companies
Some of the largest home insurance companies are considered the best and most trusted in the industry. Many of these companies have received superior financial strength ratings based on their historical ability to pay claims, and most offer standard coverage options and add-ons so you can tailor your home insurance to your needs.
Based on North American market share data from the National Association of Insurance Commissioners (NAIC), the top homeowners insurance companies are:
- State Farm
- Allstate
- Liberty Mutual
- USAA
- Farmers
- Travelers
- American Family
- Nationwide
- Chubb
- Progressive
- Citizens Property Insurance Group
- Erie
- Auto-Owners
- Universal Insurance Group
- AAA (and CSAA)
- Amica
- Heritage Property & Casualty Insurance
- Mercury
- The Hartford
- Cincinnati Insurance
- Country Financial
- Auto Club Group
- American International Group (AIG)
Top 5 largest home insurance companies
The following table shows the top five largest home insurance companies in North America, ranked by direct written premiums — or the total amount policyholders paid for insurance coverage — and 2022 market share. The table also includes each company’s average annual premium for $250,000 in dwelling coverage, as gathered from Quadrant Information Services, and its 2022 J.D. Power U.S. Home Insurance Study customer satisfaction score.
| Home insurance company | 2022 percentage of market share | Direct premiums written | Average cost of insurance for a $250K dwelling | J.D. Power customer satisfaction score |
|---|---|---|---|---|
| State Farm | 18.35% | $24 billion | $1,462 | 829/1,000 |
| Allstate | 9.02% | $12 billion | $1,340 | 815/1,000 |
| Liberty Mutual | 7.31% | $9.7 billion | N/A | 805/1,000 |
| USAA* | 6.65% | $8.8 billion | $969 | 884/1,000 |
| Farmers | 6.22% | $8 billion | $1,664 | 792/1,000 |
*Not officially ranked with J.D. Power due to eligibility restrictions
State Farm
State Farm is the largest home and auto insurance company in North America, capturing 18.35 percent of the home market and 16.84 percent of auto. State Farm has an extensive network of 19,000 agents across most of the country and is highly rated for overall customer satisfaction by J.D. Power. Many customer needs can be met online, including paying bills, finding a contractor for home repairs and managing your accounts. The company also offers a variety of home insurance discounts, with savings for bundling your policies, having an impact-resistant roof and installing a home security system.
Learn more: State Farm Insurance review
Allstate
Allstate is the second-largest home insurance provider in the country, with 9.02 percent of the total market share. The company stands out for its impressive list of home insurance add-on coverage, including sports equipment coverage, yard and garden coverage, green improvement reimbursement coverage and scheduled personal property coverage, just to name a few. Allstate also has competitive third-party ratings AM Best. You can file claims online or through the Allstate mobile app and use Allstate’s Good Hands Repair Network to find a reputable contractor in your area.
Learn more: Allstate Insurance review
Liberty Mutual
Liberty Mutual is the third-largest home insurance company, with 7.31 percent of the market share. Homeowners can take advantage of endorsements like personal property replacement cost coverage, hurricane coverage, inflation protection and more. The company also offers many discounts, with savings for being claims-free, getting a quote before your current policy expires, insuring a newly purchased home, having a new roof, enrolling in automatic payments and several others. However, Liberty Mutual is rated below average for overall home insurance customer satisfaction by J.D. Power.
Learn more: Liberty Mutual Insurance review
USAA
USAA ranks fourth on the list of largest home insurance companies, but you can only get coverage if you are an active duty or retired military servicemember or an eligible immediate family member. Because of this restriction, USAA is considered rank-ineligible by J.D. Power, though its scores are exceptional for customer service and claim handling. USAA offers several home insurance discounts and add-on coverage options like home sharing coverage, earthquake coverage and military uniform coverage.
Learn more: USAA Insurance review
Farmers
Farmers holds the fifth spot on the list of largest home insurance companies. It’s one of the few insurance companies that offers three tiers of coverage, based on the amount of coverage you might need for your situation. Farmers also offers perks like a disappearing deductible, claim forgiveness, Eco-Rebuild coverage for green homes and other add-ons to round out your financial protection. In terms of discounts, Farmers provides several ways to save, with discounts for not smoking, having a home security system and working as a healthcare provider, teacher, first responder or military servicemember. Like Liberty Mutual, Farmers is rated below the industry average for overall customer satisfaction in the most recent J.D. Power Home Insurance Study.
Learn more: Farmers Insurance review
Advantages and disadvantages of large insurance companies
Large insurance companies typically have more insurance products, competitive pricing and greater availability for customer service and claims. However, smaller insurance companies may offer more personalized service, may have cheaper rates for some coverage types and may offer more flexibility for policyholders. Depending on your circumstances and insurance needs, as well as your preference for customer interactions, a large insurance company may or may not be the best fit.
| Advantages | Drawbacks |
|---|---|
| More insurance products may be available | Customer service may not be as personal as with a smaller provider |
| Longer business hours or 24/7 customer service | Claim process may be longer due to higher volumes of claims being processed |
| Variety of policy management and claims options | Larger companies may be less likely to gear policies toward the specific needs of regional homeowners |
Advantages of a large insurance company
Large insurance companies have some advantages over smaller companies, which can include:
- Multiple insurance products: If you are looking to insure everything with one company, you may find a wider range of insurance products with a large company versus a small company.
- Customer service hours: Larger insurance companies usually have a greater number of customer service representatives, which allows for longer customer service windows of time and the ability to handle a higher volume of calls.
- Multiple access points: Whether you prefer to handle your insurance business over the phone, online or through the app, large insurance companies typically offer multiple ways to access or manage your policy and claims whenever it is convenient.
Disadvantages of a large insurance company
Although there are advantages of using a large insurance company, there are some disadvantages to consider:
- Lack of personal service: This may be true if the insurance company operates through a call-center model instead of the local agency model. In this case, you may have to call an 800 number to speak to a representative. It is unlikely your agent will have a longstanding history with you and your family, and you will not always be able to speak to the same person twice, except in some cases with an assigned claims adjustor.
- Potential for long claims process: In the event of a natural disaster or large number of claims in an area or across multiple states, large insurance company claims may take a longer time to process.
- Specialized coverage: Small insurance companies typically work closely with a local customer base and can provide specialized coverage recommendations to meet their needs better than larger insurers providing coverage to the entire country.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 current rates for ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.