Home » The Prime 10 Largest Auto Insurance coverage Firms in 2022

The Prime 10 Largest Auto Insurance coverage Firms in 2022

State Farm tops the checklist of the most important auto insurance coverage corporations, controlling 16.15% of the market and gathering over $40 billion in annual premiums. That is almost $7 billion greater than Geico, the following largest provider. Progressive, Allstate, and USAA spherical out the highest 5.

Auto insurance coverage is a aggressive trade, as shoppers continuously store round with a view to get the very best charges. It is also an trade the place the most important corporations hold scooping up extra of the market.

Learn on to seek out out the market shares of the most important carriers, the very best automotive insurance coverage corporations for buyer satisfaction, and far more.

Key findings

  • State Farm is the most important auto insurance coverage firm in the US with a 16.15% market share as of 2020.
  • The ten largest automotive insurance coverage corporations management almost 75% of the market.
  • Progressive has been steadily rising its market share and shutting in on second-place Geico.
  • USAA has the very best buyer satisfaction charges among the many prime auto insurance coverage corporations.
  • The premiums written for auto insurance coverage insurance policies had been almost $250 billion in 2020.
  • There have been about $140 billion in losses on these auto insurance coverage insurance policies.

The most important auto insurance coverage corporations by premiums written

Listed here are the 50 largest auto insurance coverage corporations as of 2020, based on information gathered by the Nationwide Affiliation of Insurance coverage Commissioners:

Information supply: Nationwide Affiliation of Insurance coverage Commissioners (2021).

The automotive insurance coverage trade has a complete of $249,495,199,659 in direct written premiums. That is 34.40% of the full U.S. insurance coverage trade, greater than another line of insurance coverage. There have been a complete of $140,426,700,000 in direct losses on these auto insurance coverage insurance policies.

Most shoppers go together with one of many large names after they purchase automotive insurance coverage. This is the mixed market share of the most important carriers:

  • The highest 5 have a mixed market share of 58.32%.
  • The highest 10 have a mixed market share of 73.37%.
  • The highest 25 have a mixed market share of 87.13%.

Customers get quotes for auto insurance coverage charges typically, based on information from J.D. Energy. Through the fourth quarter of 2021, 11.4% of shoppers reported purchasing for automotive insurance coverage within the final 30 days.

The portion of shoppers purchasing for a automotive insurance coverage product did not change a lot all year long, however the portion who switched to new carriers did. It elevated by almost 10% from the primary to the fourth quarter of 2021.

Information supply: J.D. Energy (2022).

A driver’s credit score rating appears to have a major influence on how probably they’re to change automotive insurance coverage carriers. There is a clear relation between credit score scores and the proportion of shoppers who change automotive insurance coverage corporations. As credit score scores go up, switching charges go down.

Information supply: J.D. Energy (2022).

Now, let’s take a better have a look at the ten largest auto insurance coverage corporations. When accessible, we have included the newest common auto insurance coverage charges for every provider and claims satisfaction charges from J.D. Energy. Satisfaction charges are on a 1,000-point scale, and the trade common is 880.

(It is also price noting that lots of the corporations beneath supply life insurance coverage, dwelling insurance coverage, and different insurance coverage merchandise — so that you could possibly bundle insurance policies to avoid wasting cash should you’re on the lookout for new automotive insurance coverage.)

1. State Farm

  • Market share: 16.15%
  • Direct premiums written: $40,397,656,000
  • Common annual charge: $2,147
  • Claims satisfaction: 892

State Farm is the nation’s largest auto insurance coverage firm, a place it has held for years. It had a 16.15% market share in 2020, which was almost unchanged from its share of 16.14% the yr earlier than. J.D. Energy estimates that about one out of 5 automobiles on the highway in the US has State Farm protection.

It is simple to see why State Farm is so common with shoppers. The corporate’s premiums are cheaper than common, buyer satisfaction scores for its claims course of are above common, and it affords loads of insurance coverage protection choices.

LEARN MORE: State Farm Auto Insurance coverage Overview

2. Geico

  • Market share: 13.51%
  • Direct premiums written: $33,785,462,000
  • Common annual charge: $1,758
  • Claims satisfaction: 881

By way of model consciousness, Geico is hard to beat. Virtually everybody is aware of about it by its mascot, an animated gecko that has been starring in its commercials for many years.

Geico is likely one of the least expensive automotive insurance coverage corporations for shoppers with clear driving information. Its common premiums are among the many lowest we have discovered, though it may be costlier than common for individuals with an accident historical past.

Buyer satisfaction scores are barely above common for Geico. That may very well be one of many causes it had the fifth-lowest buyer loyalty charge within the fourth quarter of 2021, based on J.D. Energy.

LEARN MORE: Geico Auto Insurance coverage Overview

3. Progressive

  • Market share: 13.26%
  • Direct premiums written: $33,171,941,000
  • Common annual charge: $2,325
  • Claims satisfaction: 862

Progressive is at the moment the third-largest auto insurer, nevertheless it’s been making a giant push to seize extra of the market. It elevated promoting spending in each 2019 and 2020, and that call paid off. The corporate’s market share elevated from 10.99% in 2018 to 12.25% in 2019 and 13.26% by 2020.

The following step could also be to work on its service, as Progressive is properly beneath common in claims satisfaction. Its annual charges are costlier than common, nevertheless it has some good reductions on automotive insurance coverage. Progressive’s premiums for drivers with accidents are additionally decrease on common than these of many rivals.

LEARN MORE: Progressive Auto Insurance coverage Overview

4. Allstate

  • Market share: 9.09%
  • Direct premiums written: $22,726,699,000
  • Common annual charge: $2,912
  • Claims satisfaction: 870

Allstate’s market share hasn’t modified a lot lately, though it misplaced a little bit floor in 2020, dropping from 9.33% to 9.09%.

Value probably performs a task, as a result of Allstate is likely one of the costlier automotive insurance coverage corporations. That is very true for anybody who does not have a really perfect driving document. Nonetheless, it does supply low-cost automotive insurance coverage for teenagers and younger drivers, and individuals who do not drive typically may lower your expenses courtesy of Allstate’s Milewise choice.

Allstate affords a declare satisfaction assure. Whereas it is a distinctive characteristic, it does not look like serving to Allstate’s buyer satisfaction scores, that are subpar.

LEARN MORE: Allstate Auto Insurance coverage Overview

5. USAA

  • Market share: 6.31%
  • Direct premiums written: $15,772,993,000
  • Common annual charge: $1,871
  • Claims satisfaction: 909

USAA has a case for being the very best automotive insurance coverage firm in the marketplace. Its premiums are less expensive than most different carriers. It additionally has the very best claims satisfaction scores from J.D. Energy, regardless that it does not meet the factors to be included within the official checklist.

Though USAA affords all the principle sorts of automotive insurance coverage, it is solely accessible to navy members and their households. If anybody may be a part of, it might nearly actually have a a lot increased market share. Even with that rule in place, USAA has been rising, from a market share of 5.88% in 2018 to six.31% in 2020.

When drivers join with USAA, they often do not go away. J.D. Energy reported that USAA had the third-highest buyer loyalty charge within the fourth quarter of 2021.

LEARN MORE: USAA Auto Insurance coverage Overview

6. Liberty Mutual

  • Market share: 4.74%
  • Direct premiums written: $11,847,079,000
  • Claims satisfaction: 876

Liberty Mutual affords customizable plans that begin with the fundamentals and let shoppers add on a variety of insurance coverage protection choices. Its customer support may very well be higher, because it recorded a below-average rating in J.D. Energy’s survey.

Though Liberty Mutual has been the sixth-largest auto insurance coverage firm for a while, it would almost certainly slide all the way down to seventh when the 2021 market share numbers are launched. The following firm on this checklist, Farmers, purchased MetLife, which ought to bump it up one place.

LEARN MORE: Liberty Mutual Auto Insurance coverage Overview

7. Farmers

  • Market share: 3.97%
  • Direct premiums written: $9,936,840,000
  • Common annual charge: $2,831
  • Claims satisfaction: 893

Farmers has nice satisfaction numbers and several other distinctive protection choices, together with assured worth protection and spare elements protection. These particular coverages do not come low-cost, as Farmers insurance coverage has higher-than-average charges.

In recent times, this firm was trending down, with its market share dropping by 0.3% since 2018. It made a giant transfer in 2021 by buying MetLife and its $2.3 billion in premiums. Primarily based on their mixed market share numbers (MetLife has a 0.91% market share), Farmers is anticipated to develop into the sixth-largest auto insurer.

LEARN MORE: Farmers Auto Insurance coverage Overview

8. Nationwide

  • Market share: 2.31%
  • Direct premiums written: $5,778,149,000
  • Common annual charge: $2,214
  • Claims satisfaction: 876

Nationwide is in the course of the pack, at the least among the many largest auto insurance coverage corporations. It is a little bit higher than common with the charges it prices, however a little bit worse than common for buyer satisfaction. To its credit score, Nationwide affords fairly just a few reductions for secure driving and for bundling owners insurance coverage and auto insurance coverage.

The previous three years have seen Nationwide’s market share step by step lower. Till it makes a advertising push or improves its service, this insurer will probably stay within the decrease finish of the highest 10.

LEARN MORE: Nationwide Auto Insurance coverage Overview

9. American Household

  • Market share: 2.07%
  • Direct premiums written: $5,168,252,000
  • Common annual charge: $1,955
  • Claims satisfaction: 889

American Household is a top quality automotive insurance coverage supplier that would have a a lot greater market share if it was accessible nationwide. It is above common for buyer satisfaction, and it has among the least expensive common charges amongst prime insurers.

The principle factor that holds again American Household is its protection space. It underwrites auto insurance coverage insurance policies in lower than half the nation. Regardless of that, it is nonetheless one of many largest automotive insurance coverage corporations.

10. Vacationers

  • Market share: 1.96%
  • Direct premiums written: $4,890,393,000
  • Common annual charge: $2,362
  • Claims satisfaction: 871

Rounding out the highest 10 is Vacationers. This provider is beneath common in each claims satisfaction and the common value of its insurance coverage premiums, nevertheless it does have versatile protection choices. It is notable for providing new automotive alternative protection for 5 years, which is for much longer than the usual one to 3 years.

Vacationers’ market share hasn’t modified a lot just lately. Since 2018, it has gone up 0.05%. Although it has remained steady, it dropped from ninth to tenth in 2019 due to a leap by American Household.

LEARN MORE: Vacationers Auto Insurance coverage Overview

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