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Cate Deventer
Written by
Lisa McArdle
Edited by
Mark Friedlander
Reviewed by
Lisa McArdleEdited by
Mark FriedlanderReviewed by
Updated Mar 25, 2024
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On this page
When deciding on an auto insurance company, there are several things to consider. Does the company have the right kind of coverage for your vehicle? Are its rates reasonable when compared to competitors? Is the company well-rated by its customers? These may all be important questions to consider. However, there’s an important question you may not be as quick to think of: what is the company’s market share? While the market share of a company doesn’t directly translate into quality of coverage, it may imply higher competency and more available resources. Not only do larger companies have a longer-standing and more established footprint, but they also tend to have more funds available for meeting potential claims.
Bankrate’s insurance editorial team, which includes licensed insurance agents, used our nearly 50 years of combined industry experience to find and evaluate the largest car insurance companies by market share to help drivers find the best carrier to meet their particular needs.
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On This Page
On This Page
- What are the largest auto insurance companies?
- Why should I pick a large car insurance company?
- Frequently asked questions
- Methodology
What are the largest auto insurance companies?
The biggest car insurance companies are determined by their direct premiums written in 2021. Using the most recent NAIC data compiled by the Triple-I, these are the 10 largest auto insurance companies in the U.S. We have included each company’s Bankrate Score, which is based on our combined analysis of things like average rates from Quadrant Information Services, coverage options and third-party information from organizations like J.D. Power and AM Best. Bankrate Scores are out of a possible five points, with 5.0 being the highest.
| Company | Bankrate Score | Average annual minimum coverage premium | Average annual full coverage premium | Market share |
|---|---|---|---|---|
| State Farm | 4.3 | $666 | $2,244 | 16.9% |
| Progressive | 4.4 | $582 | $1,952 | 14.1% |
| Geico | 4.4 | $463 | $1,732 | 13.8% |
| Allstate | 3.9 | $660 | $2,935 | 10.7% |
| USAA* | 4.2 | $433 | $1,673 | 5.9% |
| Liberty Mutual | 3.8 | Rates not available | Rates not available | 5.0% |
| Farmers | 3.8 | $898 | $2,668 | 4.6% |
| Travelers | 4.2 | $535 | $1,794 | 2.1% |
| American Family | 4.2 | $523 | $1,513 | 2.1% |
| Nationwide | 4.0 | $737 | $1,796 | 2.0% |
State Farm Insurance review
J.D. Power score: 882/1,000
AM Best financial strength rating: A++
For auto policies, State Farm is the largest insurance company in the U.S., with the biggest market share (16.9 percent) and over $46.6 million in direct premiums written in 2022. It also boasts an A++ (Superior) financial strength rating from AM Best. State Farm earned an auto Bankrate Score of 4.3, thanks in part to its nationwide availability and excellent third-party customer satisfaction scores. Additionally, State Farm may offer low average rates for those with driving incidents.
Standout features:
- Large network of local agents
- Two safe-driving programs available
Progressive Insurance review
J.D. Power score: 861/1,000
AM Best financial strength rating: A+
Progressive is also one of the biggest car insurance companies, boasting the second-largest U.S. market share with over $38.9 million direct premiums written in 2022. The insurer also carries an A+ (Superior) financial strength rating from AM Best, indicating that the company has a strong history of paying out to its policyholders when they have claims. Progressive offers a highly rated mobile app as well as multiple types of accident forgiveness, helping it earn an auto Bankrate Score of 4.4 and Bankrate’s 2024 award for Best Auto Insurance Company for High-Risk Drivers.
Standout features:
- Numerous discounts
- Rideshare insurance available
Geico Insurance review
J.D. Power score: 874/1,000
AM Best financial strength rating: A++
Owned by Berkshire Hathaway, Geico is a giant in the auto insurance industry and carries 13.8 percent of U.S. market share, writing over $38.1 million in direct premiums in 2022. The company has earned an A++ (Superior) financial strength rating from AM Best. This financial strength rating, along with the company’s savings opportunities, helped Geico earn a 4.4 auto Bankrate Score. It also tied for the Best Auto Insurance Company Overall and the Best Budget Auto Insurance in the 2024 Bankrate Awards.
Standout features:
- Long list of discounts
- Robust digital tools
Allstate Insurance review
J.D. Power score: 889/1,000
AM Best financial strength rating: A+
Allstate boasts an A+ (Superior) financial strength rating from AM Best. It has the fourth-largest market share with just over $29.6 million in direct premiums written in 2022. Allstate’s discount opportunities and nationwide availability helped it earn an auto Bankrate Score of 3.9.
Standout features:
- Offers a points-based rewards system
- Coverage available for classic or custom vehicles
USAA Insurance review
J.D. Power score: 890/1,000
AM Best financial strength rating: A++
USAA maintains an impressive A++ (Superior) financial strength rating from AM Best. It ranks in the top five for largest market share, writing more than $16.3 million in direct premiums in 2022. USAA’s top-notch customer service rankings, along with its lower-than-average premiums, helped it earn an auto Bankrate Score of 4.2.
Standout features:
- Coverage types and discounts are geared toward military needs
- Several types of insurance available
Liberty Mutual Insurance review
J.D. Power score: 870/1,000
AM Best financial strength rating: A
Liberty Mutual has the sixth-largest market share with more than $13.7 million in direct premiums written in 2022. The company has a lower financial strength rating than other top carriers on our list — although still relatively high — with an A (Excellent) from AM Best. Liberty Mutual has an auto Bankrate Score of 3.8, partly because of its robust coverage options.
Standout features:
- Available in all 50 states and Washington, D.C.
- Offers a wide range of discounts
Farmers Insurance review
J.D. Power score: 882/1,000
AM Best financial strength rating: A
Farmers has the seventh-largest market share at 4.6 percent, generating over $12.6 million in direct premiums in 2022. The company carries an A- (Excellent) financial strength rating from AM Best, placing its financial strength just below Liberty Mutual. Farmers allows for a highly-customizable auto insurance policy through a solid set of endorsem*nts, helping it earn a Bankrate Score of 3.8.
Standout features:
- Multiple unique discounts available
- Robust website with plentiful resources
Travelers Insurance review
J.D. Power score: 854/1,000
AM Best financial strength rating: A++
Travelers grew dramatically between 2021 and 2022 moving from 10th to 8th biggest carrier with a market share of 2.1 percent and over $5.8 million in direct premiums written in 2022. The company sits alongside other top-rated insurers with an A++ (Superior) financial strength rating from AM Best. Travelers has a 4.2 auto Bankrate Score, thanks in part to this stellar financial strength and its coverage options.
Standout features:
- Numerous optional coverage types
- Various discounts opportunities
American Family Insurance review
J.D. Power score: 874/1,000
AM Best financial strength rating: A
American Family maintains the ninth-largest market share with just under $5.8 million in direct premiums written in 2022. The carrier has an A (Excellent) AM Best financial strength rating. American Family scores above average in the regions where it’s included in the J.D. Power 2022 U.S. Auto Insurance Study, contributing to the company’s 4.2 auto Bankrate Score.
Standout features:
- 24/7 claims support
- Diminishing deductible option
Nationwide Insurance review
J.D. Power score: 868/1,000
AM Best financial strength rating: A+
Nationwide dropped to 10th place for market share with more than $5.5 million in direct premiums written in 2022 — similar to the same amount in 2021. It is still one of the biggest car insurance companies and Nationwide is backed by an A (Excellent) financial strength rating from AM Best. Nationwide tends to offer generally low rates, which is one of the reasons why it has an auto Bankrate Score of 4.0.
Standout features:
- Local, independent agents available
- Offers two usage-based programs
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Why should I pick a large car insurance company?
Purchasing a policy from a large auto insurer could have multiple benefits since major carriers tend to have vast resources to offer. One factor to consider when choosing the right car insurance company for you is a company’s stability.
With more premiums written, a large insurance company is often more financially stable than a smaller, regional carrier that is more limited in its scope. While some national carriers may have higher rates than regional insurers, they may also be able to offer more discounts and savings programs that policyholders can use to lower their costs.
The largest auto insurance companies also tend to offer extended customer service hours, sometimes even offering 24/7 instant support by phone and chat. Smaller car insurance companies may not have the resources to maintain these extended levels of customer support.
When it comes to whether a large insurance company or small company is better, it depends on your needs and what you want in an auto insurer.
Benefits of choosing a large insurance company
Pros
Generally more financially stable
Might offer more discounts
Extended customer service hours
Faster claims processing
Cons
Customer service can be delayed due to volume
Policyholders may receive less individualized assistance
Available agents online or via phone may be less likely to understand the unique needs of drivers in your region
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Bankrate Scores
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent.
