Before purchasing car insurance, it’s essential to research the insurance company and insurance plan thoroughly. Nowadays, you can easily gather information about insurance plans by visiting company websites from the comfort of your home. However, you might wonder which companies to explore. In this article, we aim to provide a solution to this question by introducing the top 10 auto insurance companies in the USA, which have consistently performed well in the car insurance industry in recent years.
To help you find the best car insurance for your needs, our editorial team conducted research on average premiums, coverage options, discount offerings, third-party customer service ratings, and financial strength rankings. When shopping for auto insurance, your initial step may involve identifying the factors that matter most to you in a company, such as digital tools, J.D. Power ratings, financial strength ratings, or specialized coverage options. Based on your preferences, you can compile a list of car insurance companies that align with your requirements.
Car insurance is essential for mitigating financial liabilities that may arise from unfortunate events involving your vehicle, such as accidents, fires, theft, natural disasters, and more. Regardless of your specific needs, you can benefit from guidance in determining which insurance company suits you best.
The following list includes national and regional auto insurance companies that our team has analyzed as potentially excellent options for drivers across the United States.
Contents
- 1 Top 15 Auto Insurance Companies in USA
- 1.1 1) State Farm ( Market share 17.0% )
- 1.2 2) Progressive ( Market share 13.2% )
- 1.3 3) Geico (Berkshire Hathaway Inc. ( Market share 12.7% )
- 1.4 4) Allstate ( Market share 10.8% )
- 1.5 5) USAA ( Market share 7.1% )
- 1.6 6) Liberty Mutual ( Market share 6.7% )
- 1.7 7) Farmers Insurance ( Market share 5.9% )
- 1.8 8) Travelers ( Market share 4.2% )
- 1.9 9) American Family Insurance ( Market share 4.3% )
- 1.10 10) Nationwide ( Market share 7.6% )
- 2 Conclusion
Top 15 Auto Insurance Companies in USA
To compare the market shares of the top insurers for private passenger auto insurance, see the graph below.
| Rank | Company | Market Share |
|---|---|---|
| 1 | State Farm | 17.0% |
| 2 | Progressive | 13.2% |
| 3 | Geico | 12.7% |
| 4 | Allstate | 10.8% |
| 5 | USAA | 7.1% |
| 6 | Liberty Mutual | 6.7% |
| 7 | Farmers Insurance | 5.9% |
| 8 | Nationwide | 5.6% |
| 9 | American Family Insurance | 4.3% |
| 10 | Travelers | 4.2% |
| 11 | Auto-Owners Insurance | 2.8% |
| 12 | Erie Insurance | 2.6% |
| 13 | Westfield Insurance | 2.5% |
| 14 | Safeco Insurance | 2.4% |
| 15 | Hartford Insurance | 2.3% |
State Farm Insurance is a prominent group of mutual insurance companies operating throughout the United States, with its corporate headquarters located in Bloomington, Illinois. State Farm holds the distinction of being the largest insurer of personal automobiles in the nation. The company offers a wide range of insurance products, banking services, and loans, all accessible through a network of local State Farm agents located across the United States.
State Farm stands out as the largest provider of property and casualty insurance, as well as the largest auto insurance provider, in the United States. It holds the 36th position in the 2019 Fortune 500 list, which ranks American companies based on their revenue.
Founded in June 1922 by George J. Mecherle, a retired farmer, State Farm started as a mutual automobile insurance company owned by its policyholders. Initially, the company specialized in auto insurance tailored for farmers, eventually expanding its offerings to include other insurance categories like homeowners and life insurance, as well as venturing into banking and financial services.
If you are in the market for insurance and banking services, State Farm is a reputable choice and ranks among the top car insurance companies in the United States as part of the Top 15 Auto Insurance Companies.
The Progressive Corporation is a prominent American insurance company and holds the distinction of being the third-largest insurance carrier in the United States. Furthermore, it claims the top spot as the leading commercial auto insurer in the nation. The company was established in 1937 through the collaborative efforts of Jack Green and Joseph M. Lewis, and it maintains its headquarters in Mayfield Village, Ohio.
Progressive offers insurance coverage for a wide range of vehicles, including passenger vehicles, motorcycles, RVs, trailers, boats, and personal watercraft, as well as commercial vehicles. Additionally, Progressive provides an array of other insurance products, such as home, life, and pet insurance, through select partner companies. The company has also expanded its reach internationally, extending its auto insurance services to Australia.
As one of the largest auto insurers in the United States, Progressive manages over 13 million policies. Progressive predominantly offers its services online or via telephone, along with the option to connect with independent insurance agents. The Agency business of Progressive facilitates insurance sales through a network of more than 30,000 independent insurance agencies and progressiveagent.com, where customers can obtain policy quotes and subsequently engage with an agent to finalize their insurance purchase.
In recognition of its significant presence, Progressive occupies the 88th position on the 2023 Fortune 500 list, which ranks the top American corporations. Progressive is also among the Top 13 Auto Insurance Companies in the USA, affirming its status as a major player in the insurance industry.
The Government Employees Insurance Company (GEICO) is a private American auto insurance company, and its corporate headquarters are situated in Chevy Chase, Maryland. In terms of size, it ranks as the second-largest auto insurer in the United States, following State Farm. GEICO operates as a wholly-owned subsidiary of Berkshire Hathaway and extends coverage to over 24 million motor vehicles owned by more than 15 million policyholders, as of 2017.
GEICO offers private passenger automobile insurance across all 50 U.S. states and the District of Columbia. The company distributes its insurance policies through various channels, including local agents known as GEICO Field Representatives, direct phone sales to consumers facilitated by licensed insurance agents, and via their official website.
In addition to auto insurance, GEICO provides property insurance and umbrella coverage. For the latter, GEICO sells the policies but shifts the risk to third-party companies. GEICO acts as the “insurance agent” for these policies and maintains a separate customer care team to manage property and umbrella policies.
GEICO’s origins date back to 1936 when it was founded by Leo Goodwin Sr. and his wife Lillian Goodwin. Initially, the company was established to offer auto insurance to federal government employees.
The Allstate Corporation is a notable American insurance company with its headquarters located in Northfield Township, Illinois, near Northbrook since 1967. It has a rich history, originating in 1931 as part of Sears, Roebuck and Co. and subsequently becoming an independent entity when it was spun off in 1993. Allstate also operates personal lines insurance services in Canada. Renowned as one of the largest insurance companies in the United States, it provides a range of insurance coverage, including auto, home, renters, and life insurance.
Allstate is a substantial corporation, boasting 2018 revenues of $39.8 billion, and it earned the 79th position in the 2019 Fortune 500 list, which ranks the largest U.S. corporations by total revenue. The company’s current advertising campaign, in use since 2004, famously poses the question, “Are you in good hands?” This campaign builds upon prior advertisements featuring a suburban-style dwelling safely cradled in a pair of seemingly giant human hands. Allstate is recognized as a highly reputable insurance company and is particularly well-regarded for its auto insurance services.
If you are considering obtaining a quote from Allstate, it’s advisable to check out reviews specific to your region. Allstate is part of the Top 15 Auto Insurance Companies in the USA and is known for its strong overall performance in the insurance industry.
The United Services Automobile Association (USAA) is a prominent Fortune 500 financial services group headquartered in San Antonio. It comprises a regulated reciprocal inter-insurance exchange under the oversight of the Texas Department of Insurance, along with subsidiary companies that provide banking, investment, and insurance services to individuals and families who are currently serving or have served in the United States Armed Forces.
USAA was established in 1922 in San Antonio by a group of 25 U.S. Army officers. They formed it as a means of mutual self-insurance when they encountered difficulties in obtaining auto insurance due to the perception that military officers were a high-risk group. Over the years, USAA has expanded its offerings to include banking and insurance services, catering to both past and present members of the Armed Forces, including officers and enlisted personnel, as well as their families. In the 2018 Fortune 500 list of the largest U.S. corporations by total revenue, USAA ranked at No. 100.
Initially named the United States Army Automobile Association, the organization underwent a name change in 1924 to become the United Services Automobile Association. This change occurred to accommodate commissioned officers from other branches of the U.S. military, who also became eligible for membership.
USAA’s car insurance provides military service members with unique features aimed at enhancing their convenience. These features include discounts for vehicle storage during deployments and the option for automatic payment schedules. USAA consistently ranks among the top 15 auto insurance companies in the USA.
Liberty Mutual Group is a diversified global insurer based in Boston, Massachusetts. It holds the distinction of being the sixth-largest property and casualty insurer in the United States and is ranked 71st on the Fortune 100 list of the largest U.S. corporations, based on its 2020 revenue. With its iconic Statue of Liberty logo, Liberty Mutual operates across more than 900 locations worldwide and boasts a workforce of over 45,000 employees. As of December 31, 2021, Liberty Mutual Insurance reported consolidated assets totaling $156.043 billion, consolidated liabilities of $128.195 billion, and annual consolidated revenue amounting to $48.2 billion.
The company, established in 1912, offers a wide array of insurance products and services. These include personal automobile insurance, homeowners insurance, workers’ compensation coverage, commercial multiple peril insurance, commercial automobile insurance, general liability coverage, global specialty insurance, group disability insurance, fire insurance, and surety bonds. One of Liberty Mutual’s notable offerings is the Better Car Replacement program, designed to replace a totaled vehicle with a model that is one year newer and has up to 15,000 fewer miles than the insured vehicle.
Within the United States, Liberty Mutual maintains its status as a mutual company. This means that policyholders who hold insurance contracts are considered shareholders in the company. However, outside the United States, the Liberty Mutual Group typically operates as a separate entity, often establishing subsidiaries in countries where the legal benefits of mutual companies cannot be enjoyed.
Farmers Insurance Group is a prominent American insurance group specializing in coverage for automobiles, homes, and small businesses. Additionally, the company offers various other insurance and financial services products. Farmers Insurance boasts a substantial network comprising more than 48,000 exclusive and independent agents, along with approximately 21,000 employees. It operates under the trade name “Farmers” and is structured as three reciprocal insurers—Farmers, Fire, and Truck—that are owned by their policyholders. The non-claims operations of Farmers are overseen by an attorney in fact, known as Farmers Group Inc, which stands as a wholly owned subsidiary of the Zurich Insurance Group.
The genesis of Farmers Insurance can be traced back to a meeting between its future co-founders, John C. Tyler and Thomas E. Leavey, who first crossed paths when Tyler relocated to California. Both Tyler and Leavey hailed from rural backgrounds and shared the belief that farmers and ranchers, known for their superior driving records compared to urban residents, deserved lower insurance premiums. Today, Farmers Insurance stands as the seventh-largest auto insurer in the United States, recognized for its comprehensive coverage offerings that include a multitude of distinctive features.
The Travelers Companies, Inc., commonly referred to as Travelers, is a prominent American insurance company. It holds the distinction of being the second-largest underwriter of commercial property casualty insurance in the United States, as well as the sixth-largest underwriter of personal insurance in the country, working through independent agents. Travelers is legally incorporated in Minnesota, and its headquarters are situated in New York City, with its largest office located in Hartford, Connecticut. Notably, Travelers has been a constituent of the Dow Jones Industrial Average since June 8, 2009.
The company maintains field offices across all U.S. states, alongside operational presence in various international locations, including the United Kingdom, Ireland, Singapore, China, Canada, and Brazil. In the 2021 Fortune 500 list, Travelers secured the 98th position, with an impressive total revenue of $32 billion.
The roots of The Travelers Insurance Company trace back to Hartford, where it was founded by James Batterson, a stone contractor. Batterson first encountered the concept of accident insurance for travelers during his journey from Leamington to London in England in 1859.
Travelers offers a range of standard auto insurance coverage options and provides policyholders with the flexibility to customize their coverage. This includes features such as rental car coverage, new car replacement, and accident forgiveness. In select states, drivers can opt for IntelliDrive, the company’s usage-based smartphone app, which tracks driving habits for 90 days and offers premium reductions for safe driving.
American Family Insurance, often referred to as AmFam, stands as a prominent American private mutual company specializing in property, casualty, and auto insurance. In addition to these core insurance offerings, AmFam extends its services to encompass commercial insurance, life insurance, health insurance, homeowners coverage, as well as investment and retirement-planning products. As a Fortune 500 company, AmFam reported impressive revenues exceeding $9.5 billion in 2017.
The array of insurance products offered by American Family includes term, universal, and whole life insurance, personal and business auto insurance, personal umbrella insurance, home insurance, and coverage for motorcycles, boats, motor homes, snowmobiles, and cars. Furthermore, they provide business liability key policy and business policy package insurance, farm and ranch liability insurance, travel insurance, trip cancellation insurance, and global medical insurance.
AmFam is also dedicated to rewarding its insured individuals through the “DreamKeep Rewards” system, which offers incentives of varying sizes for completing a range of online tasks. Moreover, the “Dreams Restored Program” by AmFam is designed to alleviate the stress associated with finding a repair shop by connecting customers with partner repair shops in their local area.
Nationwide Mutual Insurance Company and its affiliated entities, commonly referred to as Nationwide, constitute a consortium of major U.S. insurance and financial services corporations headquartered in Columbus, Ohio. Nationwide also maintains regional headquarters in several locations, including Scottsdale, Arizona; Des Moines, Iowa; San Antonio, Texas; Gainesville, Florida; Raleigh, North Carolina; Sacramento, California; and Westerville, Ohio. As of the latest available data, Nationwide employs approximately 25,391 individuals and holds the #76 position in the 2019 Fortune 500 list. It is also honored with the #25 spot in Fortune’s “100 Best Companies to Work For” ranking.
Within the Nationwide group, Nationwide Financial Services (NFS) is a notable segment that had previously gone public on the New York Stock Exchange before being repurchased by Nationwide Mutual in 2009. Nationwide held a significant portion of NFS common stock since its initial public offering in 1997.
Nationwide offers a comprehensive range of personal and commercial insurance products. Their auto insurance policies include essential coverage, with the option to add supplementary coverage features such as towing, rental car coverage, and gap coverage. Additionally, Nationwide presents the Vanishing Deductible program, which potentially allows policyholders to reduce their collision and/or comprehensive deductibles by $100 for each year of safe driving, up to a maximum of $500.
Conclusion
In conclusion, selecting the right car insurance provider may require some research and time investment, but finding the insurance company that aligns best with your needs can be highly beneficial.
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