The largest car insurance companies by state
State Farm is the largest insurer in 35 states and Washington, D.C. After State Farm, GEICO was most frequently the largest insurer, taking the top market share spot in 10 states. Progressive held the most market share in 4 states, and American Family in just 1.
Largest auto insurance companies in each state
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 worry about solvency if you choose a policy from a smaller company. If you manage to find a small insurer with a base level of financial stability that you’re comfortable with, consider how much in price you’re willing to pay for better service. If you value great service, you might prefer a small insurance company.
Below, we compared the ten largest auto insurance companies according to their financial strength rating by A.M. 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 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 ten auto insurance companies by type, excluding USAA, which is an insurance exchange for military personnel.
|Mutual insurance companies||Stock insurance companies|