The Ten Largest Automobile Insurance Companies of 2019
The auto insurance market in the US is dominated by a few key players. The top ten auto insurance companies control more than 72% of the market. Although the top ten insurance companies underwrite a large number of policies, they have very different characteristics. To help you choose the best insurance company for your situation, we’ve created a list of the ten largest auto insurance companies in the U.S. and discussed what makes each one unique.
Mutual vs. Stock Insurance Companies
The main difference between mutuals and stock insurance companies is the configuration of ownership: stock insurance companies are privately or publicly owned companies that offer voting rights to stockholders. However, mutual insurance companies are owned by their policyholders.
Because shareholders benefit from stock appreciation, people argue that the short-term interests of investors are not always aligned with the long-term interests of the company. Many think mutual insurers are better because policyholders’ interests are well aligned with what is best for the company, specifically by reducing insurance rates and paying dividends to attract more customers. Listed below are the top ten auto insurance companies by type, excluding USAA, which is an insurance exchange for military personnel.
|Mutual Insurance Companies||Stock Insurance Companies|
Here are the largest auto insurance companies?
When you look at the rankings of the major auto insurance companies in the United States, most of the names are recognizable because of their national television advertising campaigns. The top ten insurance companies offer varying insurance rates, customer claims experience, and features. We discuss the ten largest auto insurance companies in the U.S. and what you should know about each one below:
1. State Farm
State Farm operates as a mutual insurance company, which means its policyholders who own it. State Farm is the largest auto insurance company in the U.S. and holds 18% of the total market share available. Nearly one out of every five dollars spent on private passenger car premiums in the U.S. is paid to State Farm. The company currently employs about 70,000 employees and has approximately 19,000 agents. Based on its large market share, State Farm’s latest annual report shows a net profit of more than $1.7 billion.
Our bet: State Farm is a great auto insurance company for anyone who wants to have a local agent and a personalized insurance experience. However, State Farm does not usually offer drivers the most competitive rates. If you want or need a curatorial experience, and are willing to pay for it, State Farm is a great option.
GEICO, well known for its animated gecko, has served as an underwriter of more than 16 million auto policies, which insure more than 24 million vehicles. The company’s size allows it to employ more than 36,000 people in nine regional offices, three service centers, and three claims centers. GEICO’s original customer base consisted of U.S. government employees and military personnel. Today, the insurance company’s customer base has expanded to include people from the private sector.
Our bet: We consider GEICO to be one of the best auto insurance companies. GEICO offers low rates, national availability, and an easy shopping experience. However, if you have had a previous accident, you are likely to receive unfavorable rates from GEICO.
Progressive, the third largest insurance company in the country, was founded in 1937. The company offers the possibility to purchase auto insurance directly, online or by phone. Alternatively, customers can enroll through independent insurance agents. The company employs more than 33,000 people and has more than 400 offices. Progressive is a publicly traded company.
Our bet: Progressive offers highly competitive rates to drivers with previous accidents. However, claims satisfaction ratings and coverage options are, at best, average. Because of this, we encourage prospective progressive customers to compare rates before subscribing to coverage.
Founded in 1931, Allstate is the second largest property and casualty insurance company in the United States. Similar to State Farm, Allstate has a list of local agents ready to serve your needs. The company currently employs more than 79,000 people. Esurance, a subsidiary of Allstate, operates in the same space. According to Allstate, the Esurance brand is aimed at self-directed, brand-sensitive customers, while Allstate is aimed at customers who enjoy local, personal service.
Our bet: We consider Allstate to be a medium-size insurance company due to its high rates and average claims satisfaction rates. Allstate’s redemptive factors are the wide variety of discounts it makes available to its customers.
USAA was founded by 25 Army officers who decided to secure each other’s vehicles in 1922. Today, the company serves millions of members associated with the U.S. military, including:
Current Military Members
Former military members
Cadets or midshipmen
USAA is headquartered in San Antonio, Texas. The length of the corporate campus extends three-quarters of a mile. USAA is the largest privately held company located in San Antonio.
Our bet: USAA is one of the best auto insurance companies in the country. If you meet their qualification criteria, you’ll enjoy competitive rates, excellent customer service, and quick responses to claims. USAA’s only disadvantage is its restricted membership.
6. Liberty Mutual
Liberty Mutual is one of the leading insurance companies in the United States and has been in existence for over 100 years. Liberty Mutual also has a strong international presence, with operations in 17 countries. International companies sell property, casualty, health, and life insurance policies. The auto insurance industry is a large part of Liberty Mutual’s business, representing 36% of its net written insurance premium as of the date of its last annual report.
Our bet: Liberty Mutual is a mediocre insurance company. The competitiveness of Liberty Mutual’s auto insurance rates will depend on its geographic location. While this is usually true for most insurers, Liberty Mutual’s rates vary more than normal. Also, Liberty Mutual customers rate the insurance company’s claims satisfaction process below average.
The farmers started as an insurance company offering coverage to rural farmers’ vehicles. It has since evolved into the seventh largest insurance company in the country. It is difficult to find an insurance company that offers more products than Farmers. It offers basic auto insurance, pet insurance, and even investment products among a variety of other insurance products. Farmers employ nearly 21,000 people, allowing it to underwrite more than 19 million policies in 50 states.
Our bet: Farmers offers decent discounts, coverage options, and excellent customer service. Ultimately, farmers’ uncompetitive rates prevent them from becoming a great auto insurance company.
Nationally, a Fortune 100 company paid more than $18 billion in claims and other benefits to members in 2017. The company does business in several verticals – including financial services, commercial lines, and personal lines – in all 50 states. Since 2000, the entire country has contributed more than $430 million to nonprofit organizations.
Our bet: Although Nationwide is not the most affordable insurance company, customer feedback tends to be positive. The company offers its customers the standard coverage and discounts you would expect from a large national insurance company.
Travelers is more than 160 years old, making it one of the oldest insurance companies operating today. In fact, Travelers issued its first auto insurance policy in 1897, before the Ford Model-T was invented. The company has more than 30,000 employees and 13,500 independent agents and brokers in several countries, including the United States, Canada, and Brazil.
Our bet: Moderate complaint ratings and competitive rates make Travelers a good choice for auto insurance coverage. In particular, Travelers offers excellent rates for families with a clean driving record. However, drivers with previous accidents and violations should stay away as traveler rates increase significantly with a recorded accident.
10. American Family
American Family was established with the initial goal of insuring farmers. In the 1930s, the company expanded and began concentrating on insuring non-farmers as well. In a recent year, American Family paid more than $3 billion in home, auto and umbrella insurance claims.
Our thoughts: American Family is a solid choice for your auto insurance needs. The company offers decent rates, which have the potential to be excellent when policyholders use some of its many discounts.