Being able to pay for medical bills, liability, and vehicle damage in the event of an accident or other mishap makes auto insurance a must-have financial safety net for drivers in the U.S.
The United States is home to a large number of auto insurance companies, each of which offers a range of coverage options and premiums to suit different demands and price ranges.
For their dependability, customer support, and extensive range of coverage options, these companies routinely receive high marks.
The top ten auto insurance companies in the U.S. control the majority of the market. Read this article to learn what makes them different from competitors in the industry.
Read: Geico vs Allstate – Which Has Better Car Insurance?
Top 10 Car Insurance Companies in the U.S.
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State Farm
Market percentage: 16.8%
Written direct premiums: $46.7 billion
Rating for the shopping experience: 877 out of a scale of 1,000
Rating for satisfaction with claims: 882 out of a scale of 1,000
Strength of finances: A++
State Farm is the largest automobile insurer in the United States. Its revenue accounts for about 17 percent of the total money spent on the entire nation’s car insurance market.
Right now, the company employs about 58,000 people total, including over 19,000 agents. Being a mutual insurance company, State Farm is owned by its policyholders.
One of the largest auto insurers in the country, State Farm offers the most economical rates throughout the country.
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Progressive
Share of the market: 14%
Written premiums for direct use: $38.9 billion
The score for the shopping experience: 853
Rating for client satisfaction: 861
Strength of finances: A+
Gap insurance and veterinary bills coverage for animals that got hurt in crashes are just two of the numerous coverages provided by the country’s second-largest motor insurer.
A good number of its rivals do not provide these kinds of services. To better meet their individual needs, policyholders now have even more customization options.
Customers can reduce their rates by taking advantage of several incentives offered by Progressive, despite the company’s average annual premium.
One instance of this is the Snapshot safe driver discount, which adjusts your rate based on your driving behaviors via a mobile app. Still, the insurer performs worse than the industry average in terms of handling claims and keeping clients happy.
Progressive is one of the top insurers in the U.S. based on market capitalization.
Related: How to Compare Car Insurance
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GEICO
Share of the market: 13.8%
Written direct premiums: $38.1 billion
The score for the shopping experience: 857
Rating for satisfaction of claims: 874
Strength of finances: A++
GEICO is renowned for providing affordable rates to drivers with a variety of credit situations, including those with bad credit, speeding tickets, and uninsured motorist convictions. For drivers with a history of DUIs, it is a fairly costly option.
A usage-based insurance program that can lower premiums for safe drivers and accident forgiveness are just two of the beneficial extra features available to GEICO policyholders.
Clients can obtain quotes, monitor bills, and handle their policies online with this Berkshire Hathaway subsidiary thanks to its easy-to-use website and powerful mobile app.
Every state in the nation offers GEICO auto insurance coverage. However, the insurer does not have a large local agent network, so depending on where you live, you might have trouble finding one if you prefer to work directly with agents.
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All state
Market percentage: 10.8%
Written direct premiums: $29.6 billion
Rating for the shopping experience: 853
Rating for claims satisfaction: 889
Strength of finances: A++
One of the biggest auto insurance companies in the U.S., Allstate provides several beneficial coverage choices that aren’t generally found from many of its rivals in the market, such as:
- Forgiveness by accident
- The disappearing deductible
- Insurance gaps
- Purchase a new vehicle
- Rideshare coverage (available in most states)
Allstate also provides a wide range of savings options, such as:
- Discount for early signing: Available if you sign your policy at least seven days before the start of its effective date.
- Discount for responsible payers: Available if you were not notified of cancellation due to nonpayment during the previous cycle.
- Discount for EZ Pay Plan: Available if you arrange for automatic withdrawals to be used for premium payments.
- eSmart discount: Available when you register for ePolicy and go paperless.
Allstate has a stellar track record of handling claims, as evidenced by its above-average customer satisfaction rating. This helps to partially offset the fact that its auto insurance rates are usually higher than those of its competitors.
Read: How to Become a Car Insurance Agent
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USAA
One of the best insurance companies in the U.S. to work for is USAA.
Market percentage: 6%.
Pros
- Accessible in Washington, D.C., and all 50 states.
- According to policyholder surveys, and ranked #1 for customer service
Con
- Regulations exclusive to active duty personnel, retirees, and their families
Out of all the auto insurance providers on our list, USAA has the best ratings for both customer service and claim satisfaction. However, only veterans, active military personnel, and their immediate families are covered by the specialty insurer.
All drivers, including teenagers, senior citizens, and those involved in traffic infractions and accidents, can benefit from competitive rates offered by USAA. Its extensive range of savings enables policyholders to further reduce premiums.
In addition to providing the typical coverages available from other insurers, USAA also offers several high-quality add-ons, such as rideshare insurance, car replacement assistance, and accident forgiveness.
Read: How to Become a Car Insurance Agent
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Liberty Mutual
Market share: 4.9%
$13.7 billion in direct premiums recorded
Rating for shopping experience: 865
Rating for satisfaction of claims: 870
Sound financial standing: A
For drivers who would rather deal online rather than with an insurance agent, Liberty Mutual is a fantastic choice.
One advantage of selecting the mutual insurer for your auto insurance is that you get access to both its comprehensive collection of coverage-related resources written in plain language and its easy-to-use website.
For digital policy management, you can also download the Liberty Mutual mobile app. And that’s part of why the company is ranked as the second largest insurer on the list for shopping experience.
On the other hand, Liberty Mutual’s rates are comparatively higher than those of its competitors in the industry, and its claims satisfaction rating is below average.
To offset this, though, the insurer provides a good number of coverage alternatives and savings to its clients, such as a deductible that drops with each passing year without a claim.
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Farmers
Market share: 4.6%
Direct premiums: $12.6 billion
Ranking for shopping experience: 846
Claim satisfaction score: 882
Financial status: A
When compared to the rates offered by other leading vehicle insurance corporations in the U.S., Farmers’ yearly dividends are almost twice as high. Younger or aged motorists pay considerably increased prices.
In addition, Farmers has one of the lowest records for shopping, yet it is among the fairest car insurance when it comes to giving clients fulfillment with claims.
Despite huge protection prices and comparison shopping, farmers extend coverages like fresh car substitutes and accident forgiveness that might be valid after a disaster.
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Travelers
Market percentage: 2.1%
Written direct premiums: $5.8 billion
Rating for the shopping experience: 848
Rating for customer satisfaction: 854
Strong finances: A++
Travelers is one of the U.S. auto insurance providers known for offering reasonable premiums. The rates for drivers with a prior DUI are also relatively low; however, the inclusion of a teenage driver may result in higher quotes.
Policyholders can choose from a wide variety of coverage alternatives. The fact that Travelers’ policies cover minor infractions and accidents while having a usage-based insurance program that gives safe drivers discounts is one of its best features.
There is also rideshare insurance offered by Travelers, but it is only available in a few states. Another drawback is that the insurer has below-average ratings for both customer experience and claims satisfaction.
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American Family
In terms of shopping experience and claims satisfaction, American Family has above-average ratings. In contrast to numerous competitors in the industry, it also has a more extensive portfolio that includes rideshare insurance, OEM coverage, deductible reduction, and accident forgiveness.
American Family offers many different discounts, such as its KnowYourDrive program which lowers the percentage of safe drivers.
Pros
- According to customer survey analysis, claims handling ranks #1
- They also got excellent marks for customer service
Cons
- Works in just 19 states
- A lot of rivals provide cheaper prices
With a score of 4.3 out of 5, American Family secured the second position in the overall ranking of the top auto insurers and is ranked highly in the majority of the subcategories that we examined.
The company leads the field in both customer loyalty and claims handling, so they are most likely to have customer-focused policies.
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Nationwide
Market percentage: 2%
Statement of direct premiums: $5.5 billion
Rating for the shopping experience: 861
Rating for claims satisfaction: 868
Strength of finances: A+
Depending on your driving style, nationwide rates can be comparatively cheap. Safe drivers with a spotless record can obtain affordable rates from Nationwide, just like with the majority of U.S. auto insurance companies.
Automobiles with bad credit can also receive lower insurance rates, but drivers with a DUI will pay more. Nationwide generally charges higher rates for drivers with a poor driving record and DUI history than the majority of its rivals.
On the other hand, the insurer offers a comprehensive list of coverages and practical extras. For individuals looking to cut their insurance costs, there are pay-per-mile and usage-based options available to explore.
Despite having a somewhat low claims satisfaction rating, Nationwide’s shopping experience score is comparable to the industry average.
Techniques used to determine which U.S. auto insurance companies are the best
The most recent market share data provided by NAIC is the foundation for the rankings. In addition to representing each company’s direct written premiums, the list is ranked by overall market share.
