The 10 Largest Auto Insurance Companies

The 10 Largest Auto Insurance Companies

If you watch TV or use the Internet, it won’t be long before you see an ad for a car insurance company. Big insurance companies spend billions of dollars on marketing to make sure you remember their name.

There are more than 200 companies offering car insurance, according to J.D. Power, but larger companies can have advantages, such as financial strength and stability, a wider network of agents and claims adjusters, 24-hour customer service, and better apps and websites.

Here are the nation’s top 10 largest auto insurance companies, ranked by 2014 market share, along with details about each, including the latest available consumer satisfaction ratings from Consumer Reports and J.D. Power. (See full methodology at end.)

Company2014 salesConsumer ratingsSpecial programs and discountsKey facts
State Farm
$35.6 billion (18.7% of market)
  • Consumer Reports: 85 out of 100.
  • J.D. Power: “Better than most” for claims satisfaction, “about average” for shopping satisfaction.
Drive Safe & Save usage-based insurance
  • Sells policies through exclusive agents.
  • The largest constituent company is State Farm Mutual Automobile Insurance, whose policyholders are part owners and may get dividends.
  • State Farm review
Geico $20.5 billion (10.8% of market)
  • Consumer Reports: 83 out of 100.
  • J.D. Power: “About average” for claims satisfaction and shopping satisfaction.
Discounts for federal employees, military members and members of more than 500 “affinity” groups, including professional and recreational organizations.
  • Started as Government Employees Insurance Co. in 1936.
  • Became a subsidiary of Berkshire Hathaway in 1996.
  • Sells policies directly, through its website and by phone.
  • Geico review
Allstate $19 billion (10% of market)
  • Consumer Reports: 81 out of 100.
  • J.D. Power: “About average” for claims satisfaction and shopping satisfaction.
  • Your Choice Auto Platinum package rebates up to 5% for every six months without accidents.
  • Drivewise program has discounts based on when, how much and how well you drive.
  • Founded in 1931 as part of Sears.
  • The nation’s largest publicly held company devoted to personal insurance lines (like auto and homeowners).
  • Sells policies through exclusive and independent agents.
  • Allstate review
Progressive $16.6 billion (8.7% of the market)
  • Consumer Reports: 82 out of 100.
  • J.D. Power: “About average” for claims satisfaction, among “the rest” for shopping satisfaction.
Snapshot usage-based program prices insurance based on factors such as mileage, when you drive and sudden changes in speed. Low mileage and good driving habits can save you money.
  • Was at the forefront of such innovations as drive-in claims service, and allowing people to compare rates and buy coverage online.
  • Sells policies directly and through independent agents.
  • Progressive review
usaa $9.8 billion (5.2% of the market)
  • Consumer Reports: 93 out of 100.
  • J.D. Power: “Among the best” for claims satisfaction and shopping satisfaction.
  • Offers options for military members, such as a vehicle-storage discount.
  • Has discounts for staying with the company and passing coverage to family members.
  • Regularly Issues dividends.
  • Started as United States Army Automobile Insurance Association in 1922.
  • Membership open only to U.S. military service members and veterans who were honorably discharged, along with spouses and children of USAA members.
  • USAA review
Farmers $9.7 billion (5.1% of the market)
  • Consumer Reports: 80 out of 100.
  • J.D. Power: “About average” for claims satisfaction and shopping satisfaction.
Offers affinity discounts to a wide range of professionals, including accountants, architects, pilots, doctors, teachers, engineers, firefighters, lawyers, police officers and scientists.
  • Farmers Group, part of Zurich Insurance Group, administers policies. But three policyholder-owned exchanges actually sell policies.
  • Has a network of exclusive agents.
  • Farmers review
Liberty Mutual $9.5 billion (5% of the market)
  • Consumer Reports: 81 out of 100.
  • J.D. Power: “the rest” for claims satisfaction, “better than most” for shopping satisfaction.
Better Car Replacement coverage will pay for a car that’s one model year newer, with 15,000 fewer miles, if your vehicle is totaled.
  • Is a mutual insurance company, meaning policyholders are part owners.
  • Sells policies directly and through independent agents.
  • Liberty Mutual Review
Nationwide $7.3 billion (3.9% of the market)
  • Consumer Reports: 83 out of 100.
  • J.D. Power: “About average” for claims satisfaction and shopping satisfaction.
Is a partner in the Plenti rewards program, which provides loyalty points that consumers can earn and use with various companies.
  • Is a mutual insurance company, meaning policyholders are part owners.
  • Sells policies through exclusive agents, although some subsidiaries, like Titan and Victoria, use independent agents.
  • Nationwide review
American Family $3.5 billion (1.9% of the market)
  • Consumer Reports: 83 out of 100.
  • J.D. Power: “Better than most” for claims satisfaction, “about average” for shopping satisfaction.
Offers a Steer into Savings Discount for switching from a competitor and an EarlyBird Discount for switching at least seven days before a policy takes effect.
  • Operates in 19 states.
  • Is a mutual insurer, meaning policyholders are owners and may get dividends.
  • Uses exclusive agents.
  • American Family review
Travelers $3.2 billion (1.7% of the market)
  • Consumer Reports: 82 out of 100.
  • J.D. Power: “About average” for claims satisfaction and shopping satisfaction.
Offers a discount of up to 10% for hybrid or electric vehicles.
  • Issued the first car insurance policy in the United States, in 1897.
  • Sells policies through independent agents.
  • Travelers review

Finding the best insurance company for you

Don’t choose an insurance company just because your parents used it or its TV ads seem smart. Take a look at the big picture of customer satisfaction, claims service and price. NerdWallet’s car insurance comparison tool can help you compare rates.

Methodology: Consumer Reports reader grades are from 2014. J.D. Power ratings are from 2014 for claims satisfaction and 2015 for shopping satisfaction. Information on policy sales and market share come from SNL Financial and the Insurance Information Institute.

Updated Jan. 12, 2016.

Aubrey Cohen is a staff writer at NerdWallet, a personal finance website. Email: acohen@nerdwallet.com. Twitter: @aubreycohen.


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