The Insurance Information Institute (III) reports that as of 2019, there are 2,496 property and casualty insurance companies in the U.S. When it comes to car insurance specifically, most policies are sold from the top 10 largest insurance companies that hold a majority of the industry market share.

Choosing a large auto insurance company has a few key benefits. The rates tend to be lower and you usually have more coverage options to choose from. But there are some disadvantages of working with one of the largest auto insurance companies that you should know about.

In this article, we're going to highlight some of the largest car insurance companies to help you determine which one might fit your needs. We'll also look at some trends among large insurers and explain when choosing a smaller insurance company makes sense.

Key Highlights
  • The benefits of buying coverage from a large insurance company generally include lower rates and more robust coverage options.
  • The disadvantage of buying coverage from a large company is that you may get less satisfactory customer service.
  • The five biggest insurance companies in terms of total premiums written now make up 60% of all auto insurance premiums in the U.S.
  • State Farm, Geico, Progressive, Allstate, USAA and Liberty Mutual top the list of the 10 largest auto insurance companies for direct premiums written.

Top 10 largest auto insurance companies in United States

The table below highlights the largest auto insurance companies in the U.S., according to data from AM Best's most current market share report that tracks direct premiums written.

We've also provided some additional information to help you compare insurance providers, including the AM Best financial strength rating, average annual premium and J.D Power overall customer satisfaction score for each insurer.

Top 10 Largest Auto Insurance Companies in US
RankCompanyDirect Premiums WrittenMarket ShareA.M. Best RatingFull CoverageJ.D. Power 2021 ScoreCompany Score
1State Farm40,397,65616.15A++$1,5058724
2Geico33,785,46213.51A++$1,2008693.5
3Progressive33,171,94113.26A+$8958563.5
4Allstate25,878,68810.35A+$2,1648703.5
5USAA15,772,9936.31A++$1,1119024
6Liberty Mutual11,847,0794.74A$2,0828723.5
7Farmers9,936,8403.97A$1,3438683.5
8Nationwide5,778,1492.31A+$1,6198463.5
9American Family5,168,2522.07AN/AN/A3.5
10Travelers4,890,3931.96A++$1,3228603.5
Total US PC Industry250,136,014100

Note :

  • Rank - 2020 Company Ranking
  • Company - AMB Company Name
  • Market Share (dwp)
  • Full Coverage - Average Annual Full Coverage
  • J.D. Power 2021 Score - large insurers, score out of 1,000
  • Company Score - Best insurance companies score (out of 5)

CarInsurance.com commissioned Quadrant Information Services to field rates for a full coverage policy for a driver age 30 for nearly every ZIP code in the country. The average rate by company is show.

Source: State/Line (P/C Lines) - P/C, US; Data as of June 8, 2020

State Farm

State Farm is the biggest car insurance company in the country and it's also rated the best overall. State Farm is known for offering affordable rates and great customer service, plus policyholders are generally satisfied with the company's claim handling. We also like that State Farm offers a variety of discounts, including savings for teen drivers.

Geico

Geico has bare-bones car insurance coverage, but it offers some of the best auto insurance discounts in the industry. You'll find unique savings for federal employees, military personnel, going on emergency deployment, affinity groups and many others. Geico also stands out for its low premiums, even if you have a poor credit score or messy driving record.

Progressive

Progressive is a great insurance provider if you're looking for cheap rates and generous discounts. However, the company also offers some of the best online tools and resources. You can use the Name Your Price Tool to build a policy that fits your budget, and use the rate comparison tool to see how Progressive's prices stack up against competitors.

Allstate

Allstate makes it easy to get an instant rate quote and file a claim online, without ever calling an agent. The company also offers a highly-rated mobile app for iOS and Android devices, where you can submit claims, pay your bill, download your ID cards, request roadside assistance and access the Drivewise safe driver rewards program.

USAA

USAA Insurance Group is one of the top-rated insurance companies on the market, with an A++ rating from AM Best and the highest overall customer satisfaction score from J.D. Power in every region. USAA Insurance Group only sells car insurance to military personnel, but if you're eligible, you can take advantage of the company's low rates, excellent customer service and reliable coverage.

Liberty Mutual

Liberty Mutual's average premiums are more expensive than most of its competitors, but it offers some of the best auto insurance endorsements. With Liberty Mutual, you can customize your policy by purchasing new or better car replacement, gap insurance, OEM coverage and roadside assistance. Liberty Mutual also offers special coverage for teachers.

Farmers

In addition to its low rates, Farmers stands out for its impressive lineup of endorsement policies. You can increase your protection with spare parts coverage, a glass deductible buyback, accident forgiveness, guaranteed value coverage and a few others. You can also report a car insurance claim online or through the Farmers mobile app.

Nationwide

Nationwide gets decent scores for average price, customer service and claim handling. However, it has great discounts if you are looking for a low premium. Nationwide offers savings for good students, safe drivers, taking a defensive driving course and several others. If you drive infrequently, you might consider Nationwide's SmartMiles pay-per-mile insurance policy.

American Family

More than 50% of American Family customers say they would definitely recommend the company. It's one of the best car insurance companies for discounts, with a variety of unique savings for teen drivers, young volunteers, generational policyholders, driving under a certain number of miles per year, switching from a competitor company and more.

Travelers

Travelers has excellent financial strength with an A++ rating from AM Best, as well as affordable rates. The company stands out for its add-on policies, like rideshare coverage and accident forgiveness, as well as an efficient claim handling process. You can start a new claim online, track the status of existing claims and even find a repair shop in your area.

The benefits of going with smaller, regional carriers vs. larger ones

Although most car insurance policies are sold by the largest car insurance companies, there are pros of working with a large insurer.

Pros of larger companies:

  • In general, car insurance policies that are underwritten by major insurance companies tend to be less expensive. Because large insurers write millions of policies each year, they can afford to price their policies more competitively.
  • "The best benefit of larger insurance companies is that they often have a larger pool of money to offset risk, which means they should be able to maintain more stable premiums," says Shane Page, president of Piedmont Insurance Associates in North Carolina. "If a small company sustains catastrophic losses from a storm in a given state, it will impact their future rates much more drastically than the large companies who sustain the same losses."
  • Additionally, the biggest insurance companies in the U.S. often have more coverage options to choose from. If you want to customize your policy with endorsements, or if you need specialty coverage like rideshare insurance, a large provider is more likely to have those policies.

Pros of smaller insurance companies:

  • On the other hand, smaller local insurance providers usually have better customer service than large providers. "Small companies are often much more personal and locally engaged, as you would expect," says Page. "Plus, there is usually more latitude for underwriting decisions and being a loyal customer can pay off."
  • So, if you prefer to work with an agent in-person and you value a personalized experience, it's best to choose a local insurance company. But if your main concern is price, or if you need a specific type of coverage, a large provider may be more suitable.

Every year, J.D. Power ranks the largest auto insurance companies in the U.S. for overall customer satisfaction. The rankings are based on consumer reviews around the price, agent interactions, coverage options and more.

According to J.D. Power's 2021 U.S. Insurance Shopping Study, the largest car insurance companies continue to dominate the market. The five biggest insurance companies in terms of total premiums written now make up 60% of all auto insurance premiums in the U.S. Additionally, there was a 30% year-over-year increase in customer migration to the five largest insurance companies.

J.D. Power's insurance research experts say that brand awareness is one of the major drivers that is causing more consumers to switch insurance companies. Additionally, the data shows that 25% of consumers are expected to have a higher customer lifetime value by staying with their current insurance provider for a long period of time.

The study also surveyed respondents around car insurance during the COVID-19 pandemic. More than 50% of consumers with auto insurance did not make any changes to their policy during the pandemic.

For the consumers who did make changes, 17% reduced their coverage, 15% looked for another insurer, 12% raised their deductible to get a lower monthly rate and 12% switched to a different provider.

While many insurance companies returned premiums to policyholders and provided relief in other ways, 43% of customers didn't know that their insurance company made changes due to the pandemic.

Consumer survey: How people prefer to shop from major carriers

According to a consumer survey from CarInsurance.com, most car insurance shoppers prioritize affordability and convenience when looking for coverage.

Almost half (47%) of consumers say they shop and buy auto insurance using a computer. 16% of respondents say they prefer to use a mobile device to purchase insurance and the same percentage of respondents said they like to work with an in-person agent.

About one-third of policyholders say they remain loyal to the same insurance company year after year. 24% of respondents say they shop around for a new company every few years, while 19% say they look into other providers once per year. Only 13% of consumers say they shop around every time their policy is up for renewal.

When asked how much less a company would need to charge in order to switch from their current auto insurance provider, 30% of survey respondents said $250 per year. About 24% of respondents said $100 per year, and just 5% said over $1,000 per year.

Tips for comparison shopping and why you should do it

Whether you're interested in purchasing coverage from a large or small car insurance company, it's a good idea to compare providers before choosing one.

  • To comparison shop, start by making a list of your car insurance needs, including the types of coverage and the amount of coverage you want.
  • When researching providers, look into their third-party reviews and ratings from current and past policyholders.
  • Then, get quotes from your top three insurance companies for the same type and amount of coverage. That way, you can easily see which company can offer the lowest rate.
  • Don't forget to look at the discounts that each provider offers. The more discounts you can qualify for, the more money you can save.
  • Even if you're happy with your current auto insurance company and annual premium, every driver should comparison shop at least once per year.
  • If you move to a new state, add a driver to your policy or purchase a new car, you might want to get new rate quotes more often to ensure that you're paying the best price.

FAQs about the largest insurance companies

Here are answers to some common questions that relate to market share, direct premiums written and auto policies.

Insurance companies are often referred to as "property and casualty insurance" companies or groups. This is a term that describes, in general, what types of insurance are involved and what they cover. The property component relates to things you own that are covered by insurance, such as your car.

Casualty insurance covers you if you damage other people's property or are at fault for their injuries and they file a claim against you.

An insurance premium is the official word the insurance industry uses for what you pay to a company for a policy. However, people generally use the words "rate" interchangeably with "premium," though they technically mean two different things.

A premium is what you pay to a company for coverage. Insurance rates are actually the numbers insurance companies file with regulators that are used to determine policy pricing. When an insurance company files rates with state commissioners, they are reviewed, and after they are approved by regulators, the company uses the rates to determine how much drivers pay for coverage.

The rates are adjusted up or down based on each driver's particular profile to come up with the cost of the policy, or the premium.

Direct premiums written represents the premiums, or what policyholders will pay, for all policies that an insurance company and its child companies have written or issued during the year.

When researching which casualty insurance companies have the most market share, you will often see it measured by the amount of direct premiums written during a certain time period.

You may see this term when researching which companies are the largest. Net premiums written is the amount of premiums a company has minus costs for commissions and for policies it has subcontracted out to other companies.