When it comes to comparing largest home insurance companies to regional carriers, there are some key advantages to what you may get from a nationally available insurer. For example, average rates may be more affordable at large home insurance companies, and larger companies typically have more resources, too.
That means you’re more likely to get access to certain features, like 24/7 customer service, online and mobile app accessibility, and even more information about the company’s financial strength from third-party agencies. And, if a personal touch is important to you, many of the largest insurance companies also operate through local agencies. To help you on your home insurance shopping journey, Bankrate compiled a list of the largest home insurance companies in the U.S. and highlighted some of the pros and cons of each.
Largest home insurance companies
Some of the largest home insurance companies are often 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
- Liberty Mutual
- American Family
- Universal Insurance Group
- Citizens Property Insurance Group
- AAA (and CSAA)
- Heritage Property & Casualty Insurance
- The Hartford
- United Property & Casualty Insurance Company (UPC)
- Country Financial
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 2020 market share.
|Home insurance company||2021 percentage of market share||Direct premiums written||Average cost of insurance for a $250K dwelling||J.D. Power customer satisfaction score|
|State Farm||18.41%||$22 billion||$1,360||835/1,000|
|Liberty Mutual||6.41%||$7.7 billion||N/A||806/1,000|
*Not officially ranked with J.D. Power due to eligibility restrictions
State Farm is the largest home insurer in North America, holding 18.41% of the market share in 2021. 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 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 is the second-largest home insurance provider in the country, with 8.77% of the total market share. This company stands out for its impressive list of 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 from J.D. Power and 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
USAA ranks third 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 of a servicemember. Because of this eligibility 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 for increased protection, like HomeSharing coverage, earthquake coverage and military uniform coverage.
Learn more: USAA Insurance review
Liberty Mutual is the fourth-largest home insurance company, with 6.41% 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 the industry for overall customer satisfaction by J.D. Power.
Learn more: Liberty Mutual Insurance review
Farmers holds the fourth 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 additional 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 non-smokers, 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 studies.
Learn more: Farmers Insurance review
Advantages and disadvantages of large insurance companies
Large insurance companies typically have more insurance products, competitive pricing and may be available during all hours for customer service and claims. However, smaller insurance companies can offer personalized service, may have cheaper local rates for some coverages and can 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.
|More insurance products may be available||Customer service may not be as personal compared to a smaller provider|
|Longer business hours or 24/7 customer service||Claim process may be longer due to higher volumes of claims being processed|
|Premiums may be lower than rates from a smaller provider||Some large insurance companies may charge high rates|
|Variety of policy management and claims options||Fewer specialized coverage options available from some large companies|
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.
- Competitive pricing: Each large insurance company uses its own rate structure, which means you can shop and get different quotes from each company. It also means the large companies may price their insurance products competitively to win your business from competitors, even compared to local insurers. Distributing risk with policyholders in multiple states often allows companies to charge lower premiums than some companies who only offer coverage in a few states or cities.
- 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.
- Pricing: Though large insurance companies can offer competitive pricing, they may not be able to provide the cheapest rates for some coverage types in the way some small, local insurance companies may be able to offer.
- 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
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all 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.