The High 10 Largest Auto Insurance coverage Firms in 2022

State Farm tops the listing 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 subsequent largest service. Progressive, Allstate, and USAA spherical out the highest 5.

Auto insurance coverage is a aggressive trade, as customers steadily store round with a view to get the perfect 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 perfect automobile insurance coverage corporations for buyer satisfaction, and rather more.

Key findings

  • State Farm is the most important auto insurance coverage firm in america with a 16.15% market share as of 2020.
  • The ten largest automobile 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 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 below are the 50 largest auto insurance coverage corporations as of 2020, in line with knowledge gathered by the Nationwide Affiliation of Insurance coverage Commissioners:

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

The automobile insurance coverage trade has a complete of $249,495,199,659 in direct written premiums. That is 34.40% of the overall U.S. insurance coverage trade, greater than every other 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 customers go along with one of many large names after they purchase automobile 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 usually, in line with knowledge from J.D. Energy. In the course of the fourth quarter of 2021, 11.4% of customers reported looking for automobile insurance coverage within the final 30 days.

The portion of customers looking for a automobile 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.

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

A driver’s credit score rating appears to have a big influence on how doubtless they’re to modify automobile insurance coverage carriers. There is a clear relation between credit score scores and the share of customers who swap automobile insurance coverage corporations. As credit score scores go up, switching charges go down.

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

Now, let’s take a more in-depth take a look at the ten largest auto insurance coverage corporations. When accessible, we have included the latest common auto insurance coverage charges for every service 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 under provide life insurance coverage, house insurance coverage, and different insurance coverage merchandise — so that you might be able to bundle insurance policies to avoid wasting cash in the event you’re on the lookout for new automobile insurance coverage.)

1. State Farm

  • Market share: 16.15%
  • Direct premiums written: $40,397,656,000
  • Common annual price: $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 12 months earlier than. J.D. Energy estimates that about one out of 5 vehicles on the highway in america has State Farm protection.

It is simple to see why State Farm is so well-liked with customers. 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 Evaluate

2. Geico

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

When it comes to 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 without doubt one of the least expensive automobile insurance coverage corporations for customers with clear driving data. 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 price within the fourth quarter of 2021, in line with J.D. Energy.

LEARN MORE: Geico Auto Insurance coverage Evaluate

3. Progressive

  • Market share: 13.26%
  • Direct premiums written: $33,171,941,000
  • Common annual price: $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 subsequent step could also be to work on its service, as Progressive is properly under common in claims satisfaction. Its annual charges are costlier than common, nevertheless it has some good reductions on automobile insurance coverage. Progressive’s premiums for drivers with accidents are additionally decrease on common than these of many opponents.

LEARN MORE: Progressive Auto Insurance coverage Evaluate

4. Allstate

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

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

Value doubtless performs a job, as a result of Allstate is without doubt one of the costlier automobile insurance coverage corporations. That is very true for anybody who would not have a super driving report. Nonetheless, it does provide low-cost automobile insurance coverage for teenagers and younger drivers, and individuals who do not drive usually may get monetary savings courtesy of Allstate’s Milewise choice.

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

LEARN MORE: Allstate Auto Insurance coverage Evaluate

5. USAA

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

USAA has a case for being the perfect automobile insurance coverage firm in the marketplace. Its premiums are less expensive than most different carriers. It additionally has the best claims satisfaction scores from J.D. Energy, although it would not meet the factors to be included within the official listing.

Though USAA affords all the primary forms of automobile insurance coverage, it is solely accessible to navy members and their households. If anybody may be a part of, it could nearly definitely 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 normally do not go away. J.D. Energy reported that USAA had the third-highest buyer loyalty price within the fourth quarter of 2021.

LEARN MORE: USAA Auto Insurance coverage Evaluate

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 customers add on a spread 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 is going to most probably slide all the way down to seventh when the 2021 market share numbers are launched. The subsequent firm on this listing, Farmers, purchased MetLife, which ought to bump it up one place.

LEARN MORE: Liberty Mutual Auto Insurance coverage Evaluate

7. Farmers

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

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

Lately, 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 predicted to grow to be the sixth-largest auto insurer.

LEARN MORE: Farmers Auto Insurance coverage Evaluate

8. Nationwide

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

Nationwide is in the midst of the pack, at the least among the many largest auto insurance coverage corporations. It is a bit higher than common with the charges it prices, however a bit worse than common for buyer satisfaction. To its credit score, Nationwide affords fairly a number of reductions for protected 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 doubtless stay within the decrease finish of the highest 10.

LEARN MORE: Nationwide Auto Insurance coverage Evaluate

9. American Household

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

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

The primary 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 automobile insurance coverage corporations.

10. Vacationers

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

Rounding out the highest 10 is Vacationers. This service is under common in each claims satisfaction and the typical price of its insurance coverage premiums, nevertheless it does have versatile protection choices. It is notable for providing new automobile alternative protection for 5 years, which is for much longer than the usual one to a few years.

Vacationers’ market share hasn’t modified a lot not too long ago. Since 2018, it has gone up 0.05%. Regardless that 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 Evaluate

Sources

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