Which car insurance provider is right for you? Today, America’s largest car insurance companies are all very competitive with one another in terms of rates, coverage, customer loyalty, and convenience. Keep reading to discover the biggest car insurance companies based in America.
1. State Farm
State Farm is the largest car insurance company in the United States. With a market share of around 18%, State Farm is ahead of large competitors like GEICO, Progressive, and Allstate by the number of customers, value of premiums written each year, and other indicators. Approximately 1 in 7 vehicles on the road in the United States is insured by State Farm.
State Farm is also unique among insurance companies because it operates as a mutual insurance company, which means the company is owned by policyholders. With 70,000 employees and 19,000 insurance agents across the country, State Farm continues to grow. Today, State Farm car insurance policies are available anywhere in America. The company tends to offer competitive premiums, good coverage, and strong customer service.
Just because State Farm is the largest car insurance company in America, however, doesn’t mean it’s always the best. State Farm received a 3 out of 5 rating from J.D. Power for overall satisfaction from policyholders, which is an identical rating to the next three companies on our list.
GEICO was originally launched as a ‘Government Employees’ Insurance Company’. Today, the company we know as GEICO has grown to become one of the country’s largest and best-known car insurance providers. GEICO covers 25 million vehicles across the United States and has an army of 36,000 employees in nine regional offices across the country.
Back in the day, GEICO specialized in providing great auto insurance rates to government employees and members of the military. Today, GEICO continues to offer great rates to both groups of people, although GEICO now accepts all types of policyholders. In many parts of the country, GEICO offers cheaper car insurance premiums than all other competitors. Despite the affordable premiums, GEICO offers strong coverage and excellent customer service. One of the few drawbacks of GEICO is that drivers with at least one accident in their driving record over the past seven years tend to pay higher rates. Drivers with a clean driving record, meanwhile, can save a considerable amount of money.
Progressive is America’s third-largest auto insurance company. With a market share of around 10%, Progressive has provided strong car insurance at an affordable price since launching all the way back in 1937. Today, Progressive employs 33,000 people in 400 offices across the country. Progressive is also a publicly-traded company listed under the symbol PGR on the New York Stock Exchange (NYSE: PGR).
In terms of driver experience, Progressive is known for offering competitive rates and an easy user experience. Progressive sells car insurance online, over the phone, or in-person at Progressive locations. Customers can also by Progressive insurance agents. Progressive’s claims satisfaction ratings are similar to GEICO and State Farm, with Progressive earning a 3 out of 5 rating from J.D. Power for overall satisfaction. In some regions, Progressive is the cheapest car insurance company, and premiums tend to be priced competitively with other options on this list.
Allstate was founded in 1931 to provide property and casualty insurance across the country. Today, Allstate is the second-largest publicly-traded insurance company in the United States. It’s also one of the largest employers in the country: with over 79,000 employees, Allstate competes with State Farm as one of the biggest employers in the car insurance space.
Today, Allstate’s family includes the Esurance brand. Esurance is targeted towards consumers who prefer a cheaper, more self-directed approach to car insurance, while Allstate’s core brand focuses on customers who appreciate local, personal service. In terms of premiums and pricing, Allstate tends to be competitive with other providers on this list, although customers may pay a slightly higher rate to enjoy a more personal level of customer service.
USAA is one of the best insurance companies in the United States in terms of value, customer service, coverage, and customer satisfaction. It has also grown to become one of the country’s largest car insurance companies. There’s just one catch: USAA is only available to members of the military and their families. If you are active duty or retired military, or if your immediate family member (parent or spouse) is active duty or retired military, then you may qualify for USAA membership. If you qualify, then you can pay some of the best rates for car insurance in the country.
USAA doesn’t just beat its competitors on price; the car insurance giant also beats them in customer satisfaction. USAA is one of the few car insurance companies in the United States to have earned a 5 out of 5 rating from J.D. Power for overall satisfaction, indicating that policyholders are happier with USAA coverage than most other car insurance companies on this list.
6. Liberty Mutual
Liberty Mutual insures about 5% of all vehicles in the United States, placing it just outside the top 5 car insurance providers by market coverage. Based in Boston, Liberty Mutual employs more than 50,000 people in 900 locations worldwide. Unlike most other car insurance companies on this list, Liberty Mutual operates in countries outside of the United States and has a significant presence in Argentina, Brazil, Ireland, Russia, Thailand, the United Kingdom, Vietnam, and other countries. Founded in 1912 as the Massachusetts Employees Insurance Association (MEIA), Liberty Mutual has grown to become one of the country’s largest and most competitive car insurance companies.
Farmers is one of America’s largest car insurance companies, currently holding a market share of around 4.5% in the car insurance industry. As you may have guessed from the name, Farmers began its life by offering coverage to rural farmers’ vehicles. Over time, Farmers has grown to cover millions of customers in all 50 states. Farmers also ranks slightly higher than most of its competitors on this list in terms of overall satisfaction, scoring a 4 out of 5 from J.D. Power. Generally, Farmers offers competitive premiums, strong coverage, and good customer service countrywide. However, premiums tend to be slightly higher than other car insurance companies on this list, which means Farmers isn’t always the best choice for price-sensitive customers. Nevertheless, Farmers remains the best car insurance option in many regions of the United States.
Nationwide insures approximately 3% of all vehicles on roads in the United States. The Fortune 100 company competes with most other major providers on this list in terms of benefits, coverage, premiums, and customer service. Generally, Nationwide isn’t the cheapest car insurance company in most of its coverage areas, but the company very reputable. Nationwide aims to attract customers who are willing to pay slightly higher prices for better customer service. Overall, customer reviews for Nationwide tend to be positive, although the company holds a rating of 3 out of 5 from J.D. Power for overall satisfaction, identical to State Farm, GEICO, and Progressive.
Travelers is not only one of America’s largest car insurance companies, but it’s also one of the country’s oldest companies. Founded 160 years ago, Travelers issued its first auto insurance policy in 1897, years before the Model T was even invented. Today, Travelers is available countrywide, providing competitive car insurance premiums, strong coverage, and other benefits. Travelers is also one of the few companies on this list with operations outside of the United States. Travelers has 14,000 independent insurance brokers and agents in the United States, Canada, and Brazil, among other countries. Generally, Travelers doesn’t have the lowest car insurance premiums in most regions, but it often provides great prices to drivers with a clean driving history and strong overall customer service to all drivers.
10. American Family
American Family was originally founded as an insurance company dedicated to covering farmers. In the 1930s, American Family decided to expand its insurance pool beyond just farmers. Today, American Family is one of the country’s largest insurance companies, paying out over $3 billion in auto insurance, home insurance, and umbrella insurance claims every year. If you already have home insurance or other insurance with American Family, then it may be the best option for you.
Other Major Car Insurance Companies
The ten car insurance companies listed above are the ten largest car insurance companies in the United States. However, the largest car insurance companies aren’t always the best providers for your unique needs and budget. Other major car insurance companies that lie just outside of the top ten include:
Automobile Club Group
Auto Club of SoCal
Many of these insurance companies compete with their larger competitors by price, coverage, and value, but only serve customers in certain geographic regions. Depending on where you live, any of the above car insurance companies could be the right choice for you – regardless of whether or not it’s one of the biggest car insurance companies in America.