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Auto Insurance Companies: While the biggest companies underwrite a large number of policies, they vary in price, service quality, and many other characteristics. To help you choose the best insurance company for you, compare the list of the 10 largest auto insurance companies in the U.S. and what makes each of them unique.   For auto insurance companies in the United States, it can be difficult to know where to start looking for car insurance.

Auto Insurance Companies

What Are The Largest Auto Insurance Companies?

State Farm is the number one auto insurance company in the country in terms of market share and premiums written, followed by Geico, Progressive and Allstate. 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.

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Yet the 10 largest insurance companies in the U.S., listed below, offer different insurance rates, customer claims experiences and features. For shoppers looking for cheap rates, we always recommend comparing quotes from multiple insurers to find the best price.

Rank Company Premiums written in billions Market share percentage
1 State Farm $40.4 16%
2 Geico $33.9 14%
3 Progressive $33.2 13%
4 Allstate $25.9 10%
5 USAA $15.8 6%
6 Farmers $12.2 5%
7 Liberty Mutual $11.8 5%
8 Nationwide $5.8 2%
9 American Family $5.2 2%
10 Travelers $4.9 2%
  1. State Farm

State Farm is a great auto insurance company for anyone who wants a local agent, a personalized experience and cheaper-than-average rates.

  • Average annual premium: $1,310
  • Market share: 16%
  • Premiums written: $40.4 bn
  • ValuePenguin rating: 4.5/5
  • D. Power customer satisfaction score: 892

State Farm is the largest auto insurance company in the U.S. and owns 16% of the total available market share. Over 15% of dollars spent on private passenger auto premiums in the country go to State Farm.

The company currently employs approximately 60,000 employees and has nearly 19,000 agents. State Farm operates as a mutual insurance company, meaning that its policyholders own it.

Among the largest widely available car insurers in this list, State Farm offered the cheapest car insurance rates in most of the U.S.

  1. Geico

Geico is one of the cheapest auto insurance companies. It offers national availability and an easy shopping experience.

  • Average annual premium: $1,917
  • Market share: 14%
  • Premiums written: $33.9 bn
  • ValuePenguin rating: 4/5
  • D. Power customer satisfaction score: 881

Geico, known for its advertisements featuring an 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 40,000 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.

According to our research of the largest auto insurance carriers, Geico is the best insurer for college students.

  1. Progressive

Progressive offers especially competitive rates to drivers with previous accidents. However, claims satisfaction ratings and coverage options are average.

  • Average annual premium: $2,036
  • Market share: 13%
  • Premiums written: $33.2 bn
  • ValuePenguin rating: 3/5
  • D. Power customer satisfaction score: 862
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Progressive — the third-biggest insurance company in the country — was established in 1937. The company offers the ability to buy auto insurance in-person, online or by phone. Alternatively, customers can sign up through independent insurance agents.

The company employs more than 35,000 people and has over 400 offices. Progressive is a publicly traded company.

  1. Allstate

Allstate typically has better-than-average claims satisfaction ratings, but higher rates. However, the insurer offers a variety of discounts that can make policies more affordable for customers.

  • Average annual premium: $2,349
  • Market share: 10%
  • Premiums written: $25.9 bn
  • ValuePenguin rating: 3/5
  • D. Power customer satisfaction score: 870

Established in 1931, Allstate is the second-largest publicly traded property and casualty insurance company in America. Like State Farm, Allstate has a roster of local agents ready to serve your needs. The company currently employs more than 46,000 people.

Esurance, a subsidiary of Allstate, operates in the same space. According to Allstate, the Esurance brand targets self-directed and brand-sensitive customers, while Allstate is geared toward customers who want local and personal service.

  1. USAA

USAA is one of the best auto insurers in the country. You’ll enjoy extremely competitive rates, great customer service and speedy claims responses from USAA. The only downside is USAA’s restricted membership.

  • Average annual premium: $1,170
  • Market share: 6%
  • Premiums written: $15.8 bn
  • ValuePenguin rating: 4.5/5
  • D. Power customer satisfaction score: 909

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 and former service members, family of service members and cadets or midshipmen.

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

Because of its focus on the U.S. armed forces, USAA is our top pick for the best and cheapest car insurance for veterans and military service members.

  1. Farmers

Farmers offer decent discounts, coverage options and great customer service. However, Farmers’ expensive rates may be a negative for some shoppers.

  • Average annual premium: $2,521
  • Market share: 5%
  • Premiums written: $12.2 bn
  • ValuePenguin rating: 3.5/5
  • D. Power customer satisfaction score: 893

Farmers began as an insurance company providing coverage to 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 auto insurance, pet insurance and even investment products, among other insurance products. Farmers employ nearly 13,000 people, underwriting more than 19 million policies across all 50 states.

  1. Liberty Mutual

Liberty Mutual’s rates vary by location more than the typical insurer, and customers rank the company’s claims satisfaction process as below average.

  • Market share: 5%
  • Premiums written: $11.8 bn
  • ValuePenguin rating: 3.5/5
  • D. Power customer satisfaction score: 876

Liberty Mutual is one of the largest insurance companies in the U.S. and has been around for over 100 years. It has a large international presence, with operations in 17 countries. The company sells property and casualty, health and life insurance policies.

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You can get Liberty Mutual auto insurance through its call center, website, a local Liberty Mutual agent or broker, or representatives from its network of regional subsidiaries. One thing to note about Liberty Mutual’s coverage is that the company guarantees rates for a year.

  1. Nationwide

Nationwide is below average for affordability, and its customer reviews tend to lean negative. Nationwide offers standard coverages and discounts you’d expect from a large national insurer.

  • Average annual premium: $2,127
  • Market share: 2%
  • Premiums written: $5.8 bn
  • ValuePenguin rating: 4/5
  • D. Power customer satisfaction score: 876

Nationwide offers financial services, commercial lines and personal lines in all 50 states. The company has contributed more than $430 million to nonprofit organizations since 2000.

Nationwide has a motto called “On Your Side” that influences how auto insurance claims are handled, and how policies and premiums are determined. The company also recommends getting an annual checkup to ensure policyholders understand their benefits and coverage, as well as new discounts or changes to keep premiums affordable. Nationwide calls this consultation its “On Your Side” review.

Among this list of the largest car insurance companies, Nationwide offers the best deals for customers looking to bundle their home and auto insurance policies.

  1. American Family

American Family is a solid choice for auto insurance. The company offers decent rates, which have the potential to be great when policyholders take advantage of some of its many discounts.

  • Average annual premium: $1,755
  • Market share: 2%
  • Premiums written: $5.2 bn
  • ValuePenguin rating: 3.5/5
  • D. Power customer satisfaction score: 889

American Family was initially established to insure 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., and the largest insurer by market share in Wisconsin.

American Family is known for its extensive discounts that can make its already decent rates even more affordable for customers. However, insurance from American Family is not available in every state.

  1. Travelers

Moderate complaint ratings and a variety of discounts make Travelers a good choice for auto insurance coverage.

  • Average annual premium: $2,148
  • Market share: 2%
  • Premiums written: $4.9 bn
  • ValuePenguin rating: 3.5/5
  • D. Power customer satisfaction score: 871

Travelers are 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 multiple countries, including the United States, Canada and Brazil.

Notably, Travelers offers a rate pricing program known as IntelliDrive, which determines your rates by assessing your safe driving behavior with a smartphone app. Enrolling in IntelliDrive can potentially reduce your annual insurance rates by as much as 20% if you show good driving habits.

List of the largest car insurance companies by state

State Farm is the largest insurer on our list, taking the top spot in 24 states. After State Farm, Progressive is most frequently the largest insurer, taking the biggest market share in 15 states. Geico is the largest car insurance carrier in nine states, and Allstate and MAPFRE account for one state each.

Largest auto insurance companies in each state

Largest auto insurance companies in each state
State Largest insurer
Alabama State Farm
Alaska State Farm
Arizona Geico
Arkansas State Farm
California State Farm
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Big vs. small insurance companies

The trade-off between large insurance companies and small ones typically involves giving up competitive rates and financial stability for an improved customer experience.

When working with a small insurance company for your auto insurance, you’ll likely communicate exclusively with one insurance agent. However, you may also need to worry about solvency if you choose a policy from a smaller company due to a lack of financial strength. If you manage to find a small insurer with a base level of financial stability that you’re comfortable with, consider how much you’re willing to pay for better service.

Car insurance company ratings

To help you choose the best company for you, we compared the 10 largest auto insurance companies according to our editor’s rating, J.D. Power score and financial strength rating by AM Best.

Company Editor’s rating JD Power AM Best
USAA 909 A++
State Farm 892 A++
Geico 881 A++
Nationwide 876 A+
Farmers 893 A
American Family 889 A
Liberty Mutual 876 A
Travelers 871 A++
Allstate 870 A+
Progressive 862 A+

Another consideration is availability, coverage options and discounts. While you’re likely to have a more personalized experience with a small insurance company, it may not have the availability, benefits and discounts that large insurance companies do. And the major or biggest insurance companies often have representatives that are still available to speak with policyholders 24/7.

Mutual vs. Stock Insurance Companies

The main difference between mutual and stock insurance companies is who owns the company. Stock companies are privately owned or publicly traded insurance companies that offer voting rights to stockholders. Mutual insurance companies, however, are owned by their policyholders.

Since stockholders benefit from the stock’s appreciation, some say that the short-term interests of investors don’t always align with the company’s long-term interest. As a result, 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.

Most of the top 10 largest auto insurance companies are stock insurance companies, excluding USAA, which is an insurance exchange for military personnel.

Stock insurance companies Mutual insurance companies
Geico State Farm
Allstate Liberty Mutual
Progressive American Family
Farmers Nationwide
Travelers

 

How to compare the right insurance for you

With all the large auto insurance companies out there, it’s still important to pick the best company for your unique situation. We always recommend comparing quotes from multiple insurers in order to find cheap rates that fit your personal driver profile and history.

The type of auto insurance policy you choose — whether minimum or full coverage — will affect your quote, so it helps to have a general idea of which coverages you’d like before getting one.

Minimum-coverage car insurance is specified by the minimum auto insurance requirements in your state. Full-coverage car insurance adds comprehensive and collision coverage to your policy in order to protect you against physical damage to your vehicle.

We typically suggest all drivers consider full-coverage car insurance, particularly if your car is worth more than $3,000.

 

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