10 Largest Auto Insurance Companies (December 2022)
Table of Contents
Introduction
Auto insurance is an important consideration for anyone who owns a car, as it helps protect against financial losses resulting from accidents or other unexpected events. When it comes to choosing an insurance company, it can be helpful to consider the size and market share of the company, as well as its reputation and financial stability.
In this blog post, we will take a look at the 10 largest auto insurance companies in the United States, ranked by market share. We will examine their size, market presence, and other relevant information to help you make an informed decision when selecting an auto insurance provider.
What are the largest palyers in this game?
State Farm holds the largest market share and writes the most premiums in the auto insurance industry in the United States. It is followed by Geico, Progressive, and Allstate. Many of the top auto insurance companies in the country are well-known due to their widespread advertising campaigns.
State Farm
State Farm is the largest player in this game. 16% of the total market share belongs to State Farm. Approximately 15% of dollars spent on private passenger auto premiums in the country go to State Farm. The company has a workforce of 60,000 people and 19,000 agents in various departments. State Farm operates as a mutual insurance company which means its policyholders own it. Among the major car insurance providers, State Farm generally offers the lowest rates in the majority of the United States.
- Average annual premium: $1,310
- Market share: 16%
- Premiums written: $40.4 bn
- ValuePenguin rating: 4.5/5
- J.D. Power customer satisfaction score: 892
Geico
Geico, the insurance company popular for its gecko advertisements, has provided coverage for over 16 million auto policies insuring more than 24 million vehicles. The company has a large workforce, employing over 40,000 people at its nine regional offices, three service centers, and three claims centers.
Originally targeting U.S. government employees and military personnel, Geico has now expanded its customer base to include individuals in the private sector. Our research shows that Geico is the top choice for college students among the largest auto insurance carriers.
- Average annual premium: $1,917
- Market share: 14%
- Premiums written: $33.9 bn
- ValuePenguin rating: 4/5
- J.D. Power customer satisfaction score: 881
Progressive
Progressive, the third-largest insurance company in the United States, was founded in 1937. It offers various options for purchasing auto insurance, including in-person, online, by phone, or through independent insurance agents.
Progressive employs over 35,000 people and has over 400 offices. It is a publicly traded company.
- Average annual premium: $2,036
- Market share: 13%
- Premiums written: $33.2 bn
- ValuePenguin rating: 3/5
- J.D. Power customer satisfaction score: 862
Allstate
Founded in 1931, Allstate is the second-largest publicly traded property and casualty insurance company in the United States. Like State Farm, it has a network of local agents to assist customers. Allstate currently employs over 46,000 people.
Esurance, a subsidiary of Allstate, also offers insurance services. According to Allstate, Esurance is geared towards self-directed and brand-sensitive customers, while Allstate targets those who want local and personal service.
- Average annual premium: $2,349
- Market share: 10%
- Premiums written: $25.9 bn
- ValuePenguin rating: 3/5
- J.D. Power customer satisfaction score: 870
USAA
In 1922, USAA was established by 25 Army officers who decided to insure each other’s vehicles. Today, the company serves millions of members affiliated with the U.S. military, including current and former service members, military families, and cadets or midshipmen.
USAA is headquartered in San Antonio and its corporate campus spans three-quarters of a mile, making it the largest private company in the city.
Given its focus on the U.S. armed forces, USAA is our top pick for the most affordable and reliable car insurance for veterans and military service members.
- Average annual premium: $2,349
- Market share: 10%
- Premiums written: $25.9 bn
- ValuePenguin rating: 3/5
- J.D. Power customer satisfaction score: 870
USAA
In 1922, USAA was established by 25 Army officers who decided to insure each other’s vehicles. Today, the company serves millions of members affiliated with the U.S. military, including current and former service members, military families, and cadets or midshipmen.
USAA is headquartered in San Antonio and its corporate campus spans three-quarters of a mile, making it the largest private company in the city.
Given its focus on the U.S. armed forces, USAA is our top pick for the most affordable and reliable car insurance for veterans and military service members.
- Average annual premium: $1,170
- Market share: 6%
- Premiums written: $15.8 bn
- ValuePenguin rating: 4.5/5
- J.D. Power customer satisfaction score: 909
Farmers
Founded as an insurance company for farmers’ vehicles, Farmers has grown to become the seventh-largest insurance company in the United States. It offers a wide range of insurance products, including auto insurance, pet insurance, and investment products, as well as many others.
With nearly 13,000 employees, Farmers underwrites over 19 million policies across all 50 states. It is known for offering a diverse range of insurance products.
- Average annual premium: $2,521
- Market share: 5%
- Premiums written: $12.2 bn
- ValuePenguin rating: 3.5/5
- J.D. Power customer satisfaction score: 893
Liberty Mutual
Liberty Mutual is a leading insurance company in the United States, with a history dating back over 100 years. It has a strong international presence, operating in 17 countries and offering a range of insurance products, including property and casualty, health, and life insurance policies.
Customers can purchase Liberty Mutual auto insurance through its call center, website, a local Liberty Mutual agent or broker, or through representatives at its network of regional subsidiaries. One notable feature of Liberty Mutual’s coverage is that the company guarantees rates for one year.
- Market share: 5%
- Premiums written: $11.8 bn
- ValuePenguin rating: 3.5/5
- J.D. Power customer satisfaction score: 876
Nationwide
Nationwide offers financial services, commercial lines, and personal lines in all 50 states. It is known for its philanthropic efforts, having donated more than $430 million to nonprofit organizations since 2000.
Nationwide has a motto called “On Your Side” that influences its approach to handling auto insurance claims and determining policies and premiums. The company also recommends annual policy reviews, called “On Your Side” reviews, to ensure that policyholders understand their benefits and coverage, and to identify any new discounts or changes that can help keep premiums affordable.
Among the largest car insurance companies, Nationwide offers the best deals for customers looking to bundle their home and auto insurance policies.
- Average annual premium: $2,127
- Market share: 2%
- Premiums written: $5.8 bn
- ValuePenguin rating: 4/5
- J.D. Power customer satisfaction score: 876
American Family
Founded to insure farmers, American Family eventually expanded in the 1930s to include non-farmers as well. Today, it is a leading insurance company in the United States and the largest insurer by market share in Wisconsin.
American Family is known for offering extensive discounts that can make its already competitive rates even more affordable for customers. However, it should be noted that American Family insurance is not available in all states.
- Average annual premium: $1,755
- Market share: 2%
- Premiums written: $5.2 bn
- ValuePenguin rating: 3.5/5
- J.D. Power customer satisfaction score: 889
Travelers
With a history dating back over 160 years, Travelers is one of the oldest insurance companies in operation today. In fact, it issued its first auto insurance policy in 1897, before the invention of the Ford Model T.
Travelers has a large workforce, with over 30,000 employees and 13,500 independent agents and brokers operating in multiple countries, including the United States, Canada, and Brazil.
One unique feature offered by Travelers is its IntelliDrive rate pricing program, which uses a smartphone app to assess your safe driving behavior and potentially reduce your annual insurance rates by up to 20% if you demonstrate good driving habits.
- Average annual premium: $2,148
- Market share: 2%
- Premiums written: $4.9 bn
- ValuePenguin rating: 3.5/5
- J.D. Power customer satisfaction score: 871
