The 10 Largest Auto Insurance Companies in the U.S.

Several thousand car insurance companies operate in the U.S. Knowing which auto insurers are the largest can give you an idea of a company’s financial stability and a general understanding of its coverage availability in your area. And by reviewing auto insurance industry ratings, you can learn more about a company’s customer service and claims satisfaction.

Here’s what you should know about the biggest auto insurance companies.

10 largest auto insurance companies by market share

The 10 largest car insurance companies account for nearly 77% of the total car insurance market, according to the most recent data from the National Association of Insurance Commissioners (NAIC).^[1] State Farm holds the largest share of private passenger auto insurance, at nearly 17%. The second-largest car insurance company is Progressive, at 14%.

Composed of a diverse group of state insurance regulators, the NAIC helps state insurance commissioners by providing them with expertise, data, and analysis of insurance trends and legislation. Each year, the NAIC releases a list of priorities to focus on. For instance, the priorities for 2023 include looking at the impact of climate risk, artificial intelligence, and long-term care insurance needs.

The most recent NAIC data is from 2022. The 2023 market share report will come out by mid-year 2024.

A combined ratio is a common measurement of an insurer’s profitability. This ratio compares the amount a company collects in premiums to how much it pays out in claims annually. For instance, if the insurance company pays $50 in claims and collects $100 in premiums, it has a combined ratio of 50.

A higher ratio correlates to lower profits for the company. The combined ratio for the personal auto sector was 112.2 in 2022, the industry's worst performance in more than a decade. Simply put, this means that for every $1 in premiums insurers collected in 2022, they paid nearly $1.12 in claims. The Insurance Information Institute predicts a 109.5 combined ratio for 2023.

You can also measure profitability by looking at the combined ratio, which is calculated by dividing the amount a company pays its customers in claims and other expenses by the amount it collects in premiums. In 2022, the property and casualty (P&C) insurance sector saw a net combined ratio of nearly 111.8%, according to data published by S&P Global and included in Insurify’s 2023 car insurance report.

Find the direct premiums written, combined ratio, and market share change in 2022 for the top 10 auto insurers in the country below:

1. State Farm

2. Progressive

3. Berkshire Hathaway (GEICO)

4. Allstate

5. United Services (USAA)

6. Liberty Mutual

7. Farmers

8. Travelers

9. American Family

10. Nationwide

Largest car insurance companies by state

Insurance rates vary based on location because different areas have different levels of risk. For instance, if you live in a city with a bigger population and more traffic congestion, you’ll typically see higher rates because more vehicles result in a higher risk of accidents. Crime rates, weather patterns, state insurance requirements, and more can all affect rates.

Here are the biggest insurance companies by market share in each state, per data from the NAIC, along with the company’s average monthly full-coverage quote, according to internal Insurify data.

National vs. regional insurance companies: What’s the difference?

Direct premiums written and market share are key differentiators between national and regional insurance companies. National insurers typically provide coverage to multiple regions or nationwide. Regional companies provide insurance to a specific region of the country, or sometimes just one state. Depending on the type of coverage you want, national and regional insurers each have advantages and disadvantages.

For example, national insurers generally offer a wider range of insurance products than regional companies, may provide 24/7 customer support, and can invest more regularly in new technology and services due to a sizable budget. The size, however, can also potentially mean a lack of personal customer support and less flexibility due to corporate regulations.

By comparison, some drivers prefer regional insurers because companies can tailor policies to meet local needs and policyholders can form a relationship with an agent in their community. It also presents an opportunity to support your local economy. Potential drawbacks include shorter business hours and a smaller budget to invest in digital tools and services.

Mutual insurance companies vs. stock insurance companies

Mutual and stock insurance companies operate under different ownership structures. Within a mutual insurance company, the policyholders collectively own the company. The aim of a mutual insurance company is to maintain enough profit to meet policyholder needs. Policyholders may benefit from company profits via dividend distributions or reduced future premiums.

In a stock insurance company, the owners are external shareholders. The goal of a stock insurer is to maximize profits for its shareholders. Policyholders don’t directly feel the effect of a stock insurance company’s profits or losses.^[2]

Unlike stock insurance companies, mutual insurance companies tend to focus more on the long-term health of the company rather than prioritizing short-term shareholder profits. However, this also means mutual insurers aren’t as financially flexible as stock insurers because they can’t raise capital by selling shares.

Factors that affect car insurance rates

Several factors can influence car insurance rates, including the following:

• 

  Location

  Different geographical locations present different risks. If you live in an area with higher rates of crime or accidents, you can expect to pay more. Your state, city, and ZIP code can all affect your premium.

• 

  Age

  Younger drivers typically pay the most for car insurance because they present a larger risk to insurers due to a lack of experience. After age 25, rates typically start to decrease.

• 

  Gender

  Women have fewer accidents, driving under the influence (DUI) charges, and serious accidents than their male counterparts, according to the Insurance Information Institute (Triple-I). As a result, women often pay less for car insurance than men.

• 

  Driving record

  If you’ve had any accidents or serious traffic violations, you can expect to pay more for car insurance than a safe driver. A clean driving record will help you secure a better rate.

• 

  Type of vehicle insured

  The make and model of your car also influence your insurance rate. Insurers might increase your premium if you drive an expensive car that will cost a lot to repair. But you can earn a discount if your car has top-of-the-line safety features.

• 

  Miles driven per year

  The more you drive, the higher your chances of getting in an accident. As a result, you can expect to pay more for insurance if you spend a lot of time on the road.^[3]

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How to choose an insurance company

When trying to choose the best insurance company to fit your needs, you should compare the following features:

• Cost: The cost of insurance can vary widely between companies. Comparison shopping can help you find a company that fulfills your insurance needs and offers competitive rates. The Triple-I recommends getting at least three quotes from different companies before making a decision.^[4]

• Size: Working with a national or regional insurance company has pros and cons, so you should consider your specific needs when comparing companies. Do you want the 24/7 customer service offered by a national company, or are you more interested in forming a relationship with a local insurance agent?

• Industry ratings: To understand how different insurance companies stack up against each other, you can review industry ratings from AM Best, J.D. Power, and the NAIC. These ratings provide objective information on a company’s financial strength, customer service, and claims satisfaction.

• Car insurance discounts: Many insurance companies offer a wide variety of insurance discounts. Common driver-based discounts reward safe drivers, military personnel, and good students.

• Customer reviews: Read customer reviews on websites like Trustpilot to get a sense of customer satisfaction. If you see the same kind of complaints multiple times, you should use caution before working with a company.

Comparison shopping online is a quick and easy way to get all the information you need to choose the car insurance company that fits your needs and budget.

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