The Top 10 Largest Auto Insurance Companies in 2022
State Farm tops the list of the largest auto insurance companies, controlling 16.15% of the market and collecting over $40 billion in annual premiums. That's nearly $7 billion more than Geico, the next largest carrier. Progressive, Allstate, and USAA round out the top five.
Auto insurance is a competitive industry, as consumers frequently shop around in order to get the best rates. It's also an industry where the biggest companies keep scooping up more of the market.
Read on to find out the market shares of the largest carriers, the best car insurance companies for customer satisfaction, and much more.
Key findings
- State Farm is the largest auto insurance company in the United States with a 16.15% market share as of 2020.
- The 10 largest car insurance companies control nearly 75% of the market.
- Progressive has been steadily increasing its market share and closing in on second-place Geico.
- USAA has the highest customer satisfaction rates among the top auto insurance companies.
- The premiums written for auto insurance policies were nearly $250 billion in 2020.
- There were about $140 billion in losses on those auto insurance policies.
The largest auto insurance companies by premiums written
Here are the 50 largest auto insurance companies as of 2020, according to data gathered by the National Association of Insurance Commissioners:
| Auto insurance company | Direct premiums written (thousands) | Market share |
|---|---|---|
| State Farm | $40,397,656 | 16.15% |
| Geico | $33,785,462 | 13.51% |
| Progressive | $33,171,941 | 13.26% |
| Allstate | $22,726,699 | 9.09% |
| USAA | $15,772,993 | 6.31% |
| Liberty Mutual | $11,847,079 | 4.74% |
| Farmers | $9,936,840 | 3.97% |
| Nationwide | $5,778,149 | 2.31% |
| American Family | $5,168,252 | 2.07% |
| Travelers Insurance | $4,890,393 | 1.96% |
| Auto Club Enterprises | $3,566,844 | 1.43% |
| Kemper | $3,490,527 | 1.40% |
| Erie Insurance | $3,396,043 | 1.36% |
| Auto-Owners | $3,293,660 | 1.32% |
| National General Insurance | $3,151,990 | 1.26% |
| CSAA Insurance Group | $2,791,291 | 1.12% |
| Mercury Insurance | $2,539,716 | 1.02% |
| MetLife | $2,277,534 | 0.91% |
| The Hartford | $1,863,452 | 0.74% |
| Auto Club Group | $1,818,881 | 0.73% |
| MAPFRE Insurance | $1,353,096 | 0.54% |
| Amica | $1,251,868 | 0.50% |
| The Hanover Insurance Group | $1,212,585 | 0.48% |
| COUNTRY Financial | $1,192,566 | 0.48% |
| Sentry Insurance | $1,176,385 | 0.47% |
| Southern Farm Bureau Casualty Insurance Company | $1,059,747 | 0.42% |
| Shelter Insurance | $1,038,125 | 0.42% |
| NJM Insurance Group | $1,024,968 | 0.41% |
| Alfa Insurance | $916,098 | 0.37% |
| Chubb | $790,088 | 0.32% |
| Texas Farm Bureau Insurance | $770,477 | 0.31% |
| Tennessee Farmers Group | $739,163 | 0.30% |
| Palisades Group | $719,737 | 0.29% |
| North Carolina Farm Bureau | $666,923 | 0.27% |
| The Cincinnati Insurance Companies | $618,561 | 0.25% |
| Root Insurance | $615,645 | 0.25% |
| Grange Insurance | $586,868 | 0.23% |
| Kentucky Farm Bureau | $569,764 | 0.23% |
| Markel | $563,588 | 0.23% |
| Loya Insurance Group | $557,913 | 0.22% |
| American National Insurance | $544,419 | 0.22% |
| State Auto Insurance Companies | $535,037 | 0.21% |
| Iowa Farm Bureau | $530,806 | 0.21% |
| Plymouth Rock Assurance | $496,058 | 0.20% |
| Consumers County Mutual Insurance Company | $489,483 | 0.20% |
| Home State Insurance Group | $488,370 | 0.20% |
| Wawanesa Insurance | $483,862 | 0.19% |
| Safety Insurance | $438,853 | 0.18% |
| Farm Bureau Insurance of Michigan | $435,913 | 0.17% |
| Westfield Insurance | $421,402 | 0.17% |
The car insurance industry has a total of $249,495,199,659 in direct written premiums. That's 34.40% of the total U.S. insurance industry, more than any other line of insurance. There were a total of $140,426,700,000 in direct losses on those auto insurance policies.
Most consumers go with one of the big names when they buy car insurance. Here's the combined market share of the largest carriers:
- The top five have a combined market share of 58.32%.
- The top 10 have a combined market share of 73.37%.
- The top 25 have a combined market share of 87.13%.
Trends in the auto insurance industry
Consumers get quotes for auto insurance rates often, according to data from J.D. Power. During the fourth quarter of 2021, 11.4% of consumers reported shopping for car insurance in the last 30 days.
The portion of consumers shopping for a car insurance product didn't change much throughout the year, but the portion who switched to new carriers did. It increased by nearly 10% from the first to the fourth quarter of 2021.
| Metric | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 |
|---|---|---|---|---|
| Shopped for new auto insurance | 11.3% | 11.6% | 11.4% | 11.4% |
| Switched car insurance carriers | 3.2% | 3.4% | 3.5% | 3.5% |
A driver's credit score seems to have a significant impact on how likely they are to switch car insurance carriers. There's a clear relation between credit scores and the percentage of consumers who switch car insurance companies. As credit scores go up, switching rates go down.
| Credit score range | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 |
|---|---|---|---|---|
| Poor credit | 6.5% | 6.2% | 6.3% | 6.2% |
| Fair credit | 4.6% | 4.8% | 4.8% | 5.2% |
| Good credit | 3.2% | 3.5% | 3.6% | 3.5% |
| Excellent credit | 2.7% | 2.9% | 2.9% | 2.8% |
Now, let's take a closer look at the 10 largest auto insurance companies. When available, we've included the most recent average auto insurance rates for each carrier and claims satisfaction rates from J.D. Power. Satisfaction rates are on a 1,000-point scale, and the industry average is 880.
(It's also worth noting that many of the companies below offer life insurance, home insurance, and other insurance products -- so you may be able to bundle policies to save some money if you're looking for new car insurance.)
1. State Farm
- Market share: 16.15%
- Direct premiums written: $40,397,656,000
- Average annual rate: $2,147
- Claims satisfaction: 892
State Farm is the nation's largest auto insurance company, a position it has held for years. It had a 16.15% market share in 2020, which was nearly unchanged from its share of 16.14% the year before. J.D. Power estimates that about one out of five cars on the road in the United States has State Farm coverage.
It's easy to see why State Farm is so popular with consumers. The company's premiums are cheaper than average, customer satisfaction scores for its claims process are above average, and it offers plenty of insurance coverage options.
LEARN MORE:State Farm Auto Insurance Review
2. Geico
- Market share: 13.51%
- Direct premiums written: $33,785,462,000
- Average annual rate: $1,758
- Claims satisfaction: 881
In terms of brand awareness, Geico is tough to beat. Practically everyone knows about it through its mascot, an animated gecko that has been starring in its commercials for decades.
Geico is one of the cheapest car insurance companies for consumers with clean driving records. Its average premiums are among the lowest we've found, although it can be more expensive than average for people with an accident history.
Customer satisfaction scores are barely above average for Geico. That could be one of the reasons it had the fifth-lowest customer loyalty rate in the fourth quarter of 2021, according to J.D. Power.
LEARN MORE:Geico Auto Insurance Review
3. Progressive
- Market share: 13.26%
- Direct premiums written: $33,171,941,000
- Average annual rate: $2,325
- Claims satisfaction: 862
Progressive is currently the third-largest auto insurer, but it's been making a big push to grab more of the market. It increased advertising spending in both 2019 and 2020, and that decision paid off. The company's market share increased from 10.99% in 2018 to 12.25% in 2019 and 13.26% by 2020.
The next step may be to work on its service, as Progressive is well below average in claims satisfaction. Its annual rates are costlier than average, but it has some good discounts on car insurance. Progressive's premiums for drivers with accidents are also lower on average than those of many competitors.
LEARN MORE:Progressive Auto Insurance Review
4. Allstate
- Market share: 9.09%
- Direct premiums written: $22,726,699,000
- Average annual rate: $2,912
- Claims satisfaction: 870
Allstate's market share hasn't changed much in recent years, although it lost a little ground in 2020, dropping from 9.33% to 9.09%.
Cost likely plays a role, because Allstate is one of the more expensive car insurance companies. That's especially true for anyone who doesn't have an ideal driving record. However, it does offer cheap car insurance for teens and young drivers, and people who don't drive often could save money courtesy of Allstate's Milewise option.
Allstate offers a claim satisfaction guarantee. While this is a unique feature, it doesn't appear to be helping Allstate's customer satisfaction scores, which are subpar.
LEARN MORE:Allstate Auto Insurance Review
5. USAA
- Market share: 6.31%
- Direct premiums written: $15,772,993,000
- Average annual rate: $1,871
- Claims satisfaction: 909
USAA has a case for being the best car insurance company on the market. Its premiums are much cheaper than most other carriers. It also has the highest claims satisfaction scores from J.D. Power, even though it doesn't meet the criteria to be included in the official list.
Although USAA offers all the main types of car insurance, it's only available to military members and their families. If anyone could join, it would almost certainly have a much higher market share. Even with that rule in place, USAA has been growing, from a market share of 5.88% in 2018 to 6.31% in 2020.
When drivers sign up with USAA, they usually don't leave. J.D. Power reported that USAA had the third-highest customer loyalty rate in the fourth quarter of 2021.
LEARN MORE:USAA Auto Insurance Review
6. Liberty Mutual
- Market share: 4.74%
- Direct premiums written: $11,847,079,000
- Claims satisfaction: 876
Liberty Mutual offers customizable plans that start with the basics and let consumers add on a range of insurance coverage options. Its customer service could be better, as it recorded a below-average score in J.D. Power's survey.
Although Liberty Mutual has been the sixth-largest auto insurance company for some time, it will most likely slide down to seventh when the 2021 market share numbers are released. The next company on this list, Farmers, bought MetLife, which should bump it up one position.
LEARN MORE:Liberty Mutual Auto Insurance Review
7. Farmers
- Market share: 3.97%
- Direct premiums written: $9,936,840,000
- Average annual rate: $2,831
- Claims satisfaction: 893
Farmers has great satisfaction numbers and several unique coverage options, including guaranteed value coverage and spare parts coverage. Those special coverages don't come cheap, as Farmers insurance has higher-than-average rates.
In recent years, this company was trending down, with its market share dropping by 0.3% since 2018. It made a big move in 2021 by purchasing MetLife and its $2.3 billion in premiums. Based on their combined market share numbers (MetLife has a 0.91% market share), Farmers is expected to become the sixth-largest auto insurer.
LEARN MORE:Farmers Auto Insurance Review
8. Nationwide
- Market share: 2.31%
- Direct premiums written: $5,778,149,000
- Average annual rate: $2,214
- Claims satisfaction: 876
Nationwide is in the middle of the pack, at least among the biggest auto insurance companies. It's a little better than average with the rates it charges, but a little worse than average for customer satisfaction. To its credit, Nationwide offers quite a few discounts for safe driving and for bundling homeowners insurance and auto insurance.
The past three years have seen Nationwide's market share gradually decrease. Until it makes a marketing push or improves its service, this insurer will likely remain in the lower end of the top 10.
LEARN MORE:Nationwide Auto Insurance Review
9. American Family
- Market share: 2.07%
- Direct premiums written: $5,168,252,000
- Average annual rate: $1,955
- Claims satisfaction: 889
American Family is a quality car insurance provider that could have a much bigger market share if it was available nationwide. It's above average for customer satisfaction, and it has some of the cheapest average rates among top insurers.
The main thing that holds back American Family is its coverage area. It underwrites auto insurance policies in less than half the country. Despite that, it's still one of the largest car insurance companies.
10. Travelers
- Market share: 1.96%
- Direct premiums written: $4,890,393,000
- Average annual rate: $2,362
- Claims satisfaction: 871
Rounding out the top 10 is Travelers. This carrier is below average in both claims satisfaction and the average cost of its insurance premiums, but it does have flexible coverage options. It's notable for offering new car replacement coverage for five years, which is much longer than the standard one to three years.
Travelers' market share hasn't changed much recently. Since 2018, it has gone up 0.05%. Even though it has remained stable, it dropped from ninth to tenth in 2019 because of a jump by American Family.
LEARN MORE:Travelers Auto Insurance Review
Sources
- J.D. Power (2021). "Auto Insurance Claim Satisfaction Rises on Combination of Soaring Vehicle Values and Growth of Straight-Through-Processing Claims Management, J.D. Power Finds."
- J.D. Power (2022). "Q4 U.S. Auto Insurance Shopping LIST Report."
- National Association of Insurance Commissioners (2019). "2018 TOP 25 GROUPS AND COMPANIES BY COUNTRYWIDE PREMIUM."
- National Association of Insurance Commissioners (2020). "2019 TOP 25 GROUPS AND COMPANIES BY COUNTRYWIDE PREMIUM."
- National Association of Insurance Commissioners (2021). "2020 Market Share Reports for Property/Casualty Groups and Companies By State and Countrywide."
Our Research Expert
Lyle Daly is a freelance writer who has been covering personal finance since 2016.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. The Motley Fool has a Disclosure Policy. The Author and/or The Motley Fool may have an interest in companies mentioned.