10 Largest Auto Insurance Companies
What are the largest 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 number one auto insurance company in the country in terms of market share and premiums written is State Farm, followed by Geico, Progressive and Allstate.
Yet the 10 largest insurance companies offer varied 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.
Below we list the top 10 biggest insurers in the U.S. and provide more detail regarding what you should know about each of them. Click on any of the links in the table below to learn more about a particular insurer.
Auto insurance company
Premiums written ($bn)
1. State Farm
State Farm is the largest auto insurance company in the U.S. and possesses 16% of the total available market share. Over 15% of dollars spent on private passenger auto premiums in the U.S. is paid 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 it’s owned by its policyholders.
Among the largest widely available car insurers in this list, State Farm offered the cheapest car insurance rates in most parts of the U.S.
Geico, well 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.
Progressive — the third-biggest insurance company in the country — was established in 1937. The company offers the ability to purchase 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.
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 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 towards customers who enjoy local and personal service.
In this list of the biggest car insurance companies, Allstate is our pick for the best customer service.
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.
6. Liberty Mutual
Liberty Mutual is one of the largest insurance companies in the U.S. and has been around for over 100 years, including a large international presence — with operations in 17 countries. The international company sells property and casualty, health and life insurance policies.
Liberty Mutual’s auto insurance offerings can be accessed via 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 rates are guaranteed for a year.
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 basic auto insurance, pet insurance and even investment products among a variety of other insurance products. Farmers employs nearly 13,000 people, underwriting more than 19 million policies across 50 states.
Nationwide does business across several verticals — including financial services, commercial lines and personal lines — in all 50 U.S. states. Nationwide 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 declarations, as well as new discounts or changes to keep premiums steady and coverage adequate. 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.
9. 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., and the largest insurer by market share in the state of Wisconsin.
The company is known for its extensive discount catalogue that can make its already decent rates even more affordable for customers. However, American Family currently underwrites policies in just 17 states.
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 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 via a smartphone app. Enrolling in IntelliDrive can potentially reduce your annual insurance rates by as much as 20% if you exhibit good driving habits.
Big vs. small insurance companies
The trade-off between large insurance companies and small ones typically involves giving up competitive rates for an improved customer experience.
- When using a small insurance company for your auto insurance, you’ll likely communicate exclusively with one insurance agent.
- While you might lose a personal connection when selecting a major insurer, the largest companies tend to have more financial stability. In fact, these carriers underwrite and pay out billions of dollars per year, and still often leverage their resources to offer drivers lower insurance rates.
You may also need to worry about solvency if you choose a policy from a smaller company due to 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. If you value great service, you might prefer a small insurance company.
Below, we compared the 10 largest auto insurance companies according to their financial strength rating by AM Best.
|A++/Superior||State Farm, Geico, USAA|
|A+/Superior||Progressive, Allstate, Nationwide|
|A/Excellent||Liberty Mutual, Farmers, Travelers, American Family|
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 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 10 largest auto insurance companies by type, excluding USAA, which is an insurance exchange for military personnel.
Mutual insurance companies
Stock insurance companies
Choosing the right insurer for you
Among all the large auto insurance companies out there, it’s still important to pick a carrier that’s best 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 purchasing full-coverage car insurance, particularly if their vehicle is worth more than $3,000.
A quick and simple way to compare multiple car insurance quotes is to use our tool. You can start by entering your ZIP code below.