Top Ten Largest Auto Insurance Companies of 2019

  Largest Auto Insurance Companies of 2019

The auto insurance market in the U.S. is dominated by a few key players. In fact, the top ten auto insurance companies control more than 72% of the market. While the top ten insurance companies underwrite a large number of policies, they have very distinct characteristics. To help you choose the best insurance company for your situation, we created a list of the top ten largest auto insurance companies in the U.S. and discuss what makes each of them unique.

What are the Biggest Auto Insurance Companies?

When looking at the rankings of the top auto insurance companies in the United States, most of the names are recognizable due to their national television advertising campaigns. The top ten insurance companies offer varied insurance rates, customer claims experience and features. We discuss the top ten biggest auto insurance companies in the U.S. and what you should know about each of them below:

1. State F

State Farm operates as a mutual insurance company, meaning that it’s owned by its policyholders. State Farm is the largest auto insurance company in the U.S. and possesses 18% of the total available market share. Nearly one in five dollars spent on private passenger auto premiums in the U.S. is paid to State Farm. The company currently employs approximately 70,000 employees and has nearly 19,000 agents. In accordance with its large market share, State Farm’s latest annual report shows a net gain of over $1.7 billion.

Our Thoughts: State Farm is a great auto insurance company for anyone who wants a local agent and a personalized insurance experience. However, State Farm doesn’t typically offer drivers the most competitive rates. If you want or need a curated experience, and are willing to pay for it, State Farm is a great choice.

• Read our full State Farm review.

• 3 out of 5 rating from J.D. Power for overall satisfaction.

2. GEICO

GEICO, well known for its animated gecko, has served as an underwriter to 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 across 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 in the private sector.

Our Thoughts: We consider GEICO to be one of the best auto insurance companies. GEICO offers low rates, national availability and an easy shopping experience. If you’ve had a prior accident, however, you’ll likely receive unfavorable rates from GEICO.

• Read our full GEICO review.

• 3 out of 5 rating from J.D. Power for overall satisfaction.

3. Progressive

Progressive—the third biggest insurance company in the country—was established in 1937. The company offers the ability to purchase auto insurance directly, online or by phone. Alternatively, customers can sign up through independent insurance agents. The company employs over 33,000 people and has over 400 offices. Progressive is a publicly traded company.

Our Thoughts: Progressive offers highly competitive rates to drivers with previous accidents. However, claims satisfaction ratings and coverage options are average at best. Due to this, we recommend for prospective Progressive customers to shop around and compare rates before signing up for coverage.

• Read our full Progressive review.

• 3 out of 5 rating from J.D. Power for overall satisfaction.

4. Allstate

Established in 1931, Allstate is the second largest publicly traded property and casualty insurance company in America. Similar to State Farm, Allstate has a roster of local agents ready to serve your needs. The company currently employs over 79,000 people. Esurance, a subsidiary of Allstate, operates in the same space. According to Allstate, the Esurance brand is targeted towards self-directed and brand-sensitive customers while Allstate is geared for customers who enjoy local and personal service.

Our Thoughts: We consider Allstate to be a middle-of-the-road insurance company due to its high rates and average claims satisfaction ratings. Allstate’s redeeming factors are the wide variety of discounts that it makes available to its customers.

• Read our full Allstate review.

• 3 out of 5 rating from J.D. Power for overall satisfaction.

5. USAA

USAA was founded by 25 Army officers who decided to insure 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
• Family of Military Members
• Cadets or Midshipmen

USAA is headquartered in San Antonio, Texas. The corporate campus’ length extends three-quarters of a mile. USAA is the largest private company located in San Antonio.

Our Thoughts: USAA is one of the best auto insurance companies in the country. If you meet their qualification criteria, you’ll enjoy competitive rates, great customer service and speedy claims responses. The only downside of USAA is its restricted membership.

• Read our full USAA review.

• 5 out of 5 rating from J.D. Power for overall satisfaction.

6. Liberty Mutual

Liberty Mutual is one of the top insurance companies in the U.S. and has been around for over 100 years. Liberty Mutual also has large international presence—with operations in 17 countries. The international companies sell property and casualty, health and life insurance policies. The auto insurance industry is a large part of Liberty Mutual’s business, representing 36% of their net written premium from insurance as of their latest annual report.

Our Thoughts: Liberty Mutual is a mediocre insurance company. The competitiveness of Liberty Mutual’s car insurance rates will depend on your geographic location. While this is often true with most insurers, Liberty Mutual’s rates vary more than typical. In addition, Liberty Mutual’s customers rank the insurance company’s claims satisfaction process as below average.

• Read our full Liberty Mutual review.

• 2 out of 5 rating from J.D. Power for overall satisfaction.

7. Farmers

Farmers began as an insurance company providing coverage to rural farmers’ vehicles. Since then it has evolved to become the seventh largest insurance company in the country. It’s hard 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 employs nearly 21,000 people, which allow it to underwrite over 19 million policies across 50 states.

Our Thoughts: Farmers offers decent discounts, coverage options and great customer service. Ultimately, Farmers’ non-competitive rates hold it back from becoming a great auto insurance company.

• Read our full Farmers review.

• 4 out of 5 rating from J.D. Power for overall satisfaction.

8. Nationwide

Nationwide, a Fortune 100 company, paid over $18 billion in claims and other benefits to members in 2017. The company does business across several verticals—including financial services, commercial lines and personal lines—in all 50 U.S. states. Nationwide has contributed over $430 million to nonprofit organizations since 2000.

Our Thoughts: Despite Nationwide not being the most affordable insurance company, its customer reviews tend to be positive. The company offers customers the standard coverage and discounts that you’d expect from a large national insurance company.

• Read our full Nationwide review.

• 3 out of 5 rating from J.D. Power for overall satisfaction.

9. Travelers

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 over 30,000 employees and 13,500 independent agents and brokers in multiple countries—including the United States, Canada, and Brazil.

Our Thoughts: Moderate complaint ratings and competitive rates make Travelers a good choice for auto insurance coverage. In particular, Travelers offers great rates for families with clean driving histories. However, drivers with previous accidents and violations should steer clear as Travelers’ rates rise significantly with an accident on record.

• Read our full Travelers review.

• 3 out of 5 rating from J.D. Power for overall satisfaction.

10. American Family

American Family was established with the initial goal of insuring farmers. In the 1930s, the company expanded and began to focus on insuring non-farmers as well. Today, the company is one of the biggest insurance companies in the U.S. In a recent year, American Family paid out over $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 great when policyholders utilize some of its many discounts.

• Read our full American Family review.

• 3 out of 5 rating from J.D. Power for overall satisfaction.

Mutual vs. Stock Insurance Companies

The main difference between mutual and stock insurance companies is the ownership configuration—stock insurance companies are privately or publicly owned companies that offer voting rights to stockholders. Mutual insurance companies, however, are owned by their policyholders.

Since stockholders benefit from the stock’s appreciation, people argue that the short-term interests of investors don’t always align with the long-term interest of the company. Many feel that mutual insurance companies are better because the policyholders’ interests align well with what’s best for the company, specifically lowering insurance rates and paying out dividends to attract more customers. Below, we list the top ten auto insurance companies by type, excluding USAA, which is an insurance exchange for military personnel.