Auto Insurance: How Many Companies Are In The Us Market?

There are thousands of auto insurance companies in the US, ranging from big, national chains to smaller, regional insurers. The 10 largest auto insurance companies in the US make up over three-quarters of the entire auto insurance market and are led by State Farm, Geico, Progressive, Allstate, USAA, Liberty Mutual, Farmers, American Family, Travelers and Nationwide.

The top 5 auto insurance companies in the US

There are several auto insurance companies in the US, and choosing the right one for your needs can be a daunting task. Here is a detailed overview of the top 5 auto insurance companies in the US to help you make a more informed decision:

USAA

USAA is consistently ranked as one of the best auto insurance companies in the US, offering exclusive policies for current and former members of the military and their families. They provide highly affordable premiums, with rates that are more than 35% below the national average. USAA also offers a wide range of discounts, including bundle and save, military base, good student, and safe driver discounts. Their policies are tailored to meet the unique needs of the military community, and they have a strong focus on customer service and claims handling. USAA is available in all 50 states and Washington, D.C.

Auto-Owners

Auto-Owners is a highly-rated auto insurance company that offers policies in 26 states across the US. They are known for their competitive rates, exceptional customer service, and efficient claims handling. Auto-Owners provides a variety of coverage options, including new car replacement, gap insurance, accident forgiveness, and diminishing deductible. They have also consistently received low levels of complaints and positive feedback from repair professionals for their claim processes.

Nationwide

Nationwide is recognized as the best overall car insurance company by Forbes, offering excellent rates and a wide range of add-on coverage options. They have competitive rates for various driving records and ages, including some of the cheapest rates for teens and seniors. Nationwide also offers unique programs like SmartMiles, a pay-per-mile insurance program for low-mileage drivers. Their complaint levels have been below the industry average, and they are available in 46 states and Washington, D.C.

State Farm

State Farm is a well-known and trusted auto insurance company, ranking fourth in the US. They offer a range of coverage options, including accident-free driving, defensive driving course, good driver, and vehicle safety discounts. State Farm has a strong presence across the country, with agents available in most states. Their rates are generally affordable, especially for drivers with blemishes on their records, and they receive positive feedback for their claims handling and customer service.

Geico

Geico rounds out the top 5, known for their competitive rates and wide range of coverage options. They offer accident forgiveness, non-owner policies, SR-22 filings, and good student discounts. Geico is particularly attractive to drivers with poor credit, as their rates are significantly lower than the national average for this demographic. Geico also has a strong digital presence, with a user-friendly website and highly-rated mobile apps. Their policies are available in all 50 states and Washington, D.C.

The pros and cons of a big insurance company

When it comes to auto insurance, there are pros and cons to choosing a big insurance company. Here are some advantages and disadvantages to help you make an informed decision:

Pros of a big insurance company:

• Wider variety of coverage options and discounts: Larger insurance companies typically offer a broader range of coverage options and discounts compared to smaller companies. This means you may have more flexibility in choosing a plan that suits your specific needs.
• More access to a claims line: With a bigger company, you're more likely to have 24/7 access to a claims line, making it easier to report an incident or seek assistance.
• Greater financial stability: Larger insurance companies often have more financial resources and stability, especially after a large-scale disaster. This can provide peace of mind and assurance that your claims will be handled promptly.
• Better online and mobile experience: Big insurance companies usually invest more in their digital presence, resulting in user-friendly websites and mobile apps that allow you to manage your policy and access information conveniently.

Cons of a big insurance company:

• Less personal touch and interaction: With a large insurance company, you may not have the same level of personalized service as you would with a smaller company. You may deal with different agents each time you call, and they may be located across the country or even overseas.
• Potentially higher rates: While not always the case, larger insurance companies may offer rates that are not the absolute lowest in the market. Smaller companies sometimes have lower overhead costs and can pass those savings on to their customers.
• Slower complaint resolution: Due to their size, big insurance companies might take longer to address and resolve complaints or issues you may have with your policy or claims.

The pros and cons of a small insurance company

There are several pros and cons to choosing a small insurance company for your auto insurance needs.

Pros of a small insurance company

• Personalized customer service: Small insurance companies may have more individualized customer service compared to large insurance companies. If your insurance agent is local, they may be able to help you determine coverage options tailored to your area.
• More affordable rates: Some small auto insurance companies may offer cheap insurance rates because they do not spend as much money on staffing and advertising. A small insurer who only writes policies in areas with relatively low risk may also be able to extend lower rates to policyholders.
• Supporting a local business: One of the main reasons many drivers like working with local car insurance companies is that it allows them to support a local business. The money they pay in premiums goes back into their community, as opposed to a large corporation.
• Specialized coverages: A local agency may offer more options for drivers with unique needs or who fall into a high-risk category. Since they are a part of the community, they may be more keyed into the probable risks and solutions in the area.

Cons of a small insurance company

• Limited coverage area: Small insurance providers are often limited to specific coverage areas, whereas most large insurance providers offer coverage to customers in nearly every state.
• Limited digital tools: While large insurance carriers typically offer the most up-to-date technology, from intuitive mobile apps to websites with personalized quotes and online claims features, smaller companies may not.
• Eligibility restrictions: Some small insurance companies will only offer auto coverage to certain niche drivers, customers or members.
• Limited access to reinsurance: Small insurance companies might not have as much access to reinsurance as larger companies, which could make them less financially stable.
• Limited lines of insurance: Small insurance companies may not offer as many lines of insurance as larger companies.

How to find the right insurance company for you

There are a lot of auto insurance companies in the US, and it can be challenging to choose the right one for you. Here are some tips to help you find the best auto insurance company for your needs:

• Determine your unique needs: Evaluate your circumstances, such as your driving habits, vehicle type, and financial situation, to narrow down the selection of carriers that align with your priorities. For example, if you have a teen driver, look for companies with discounts for young drivers. If you prefer personalized and localized service, consider a smaller, regional company.
• Research and compare insurance providers: Look into both large and small insurance companies to find one that matches your needs. Consider factors such as coverage options, discounts, customer service, and digital tools. Compare quotes from at least three different insurers, ensuring that you use the same coverage choices, limits, and deductibles across all carriers for an accurate rate comparison.
• Check third-party ratings: Use third-party ratings, such as J.D. Power for customer satisfaction and AM Best for financial strength, to assess insurance companies' performance and stability. This provides unbiased data to help you make an informed decision.
• Consider digital tools and customer resources: Evaluate how you prefer to interact with the company. If you prefer digital tools, choose a company with a robust mobile app and online portal. If you value personalized service, look for a company with local agents and a strong customer support team.
• Understand your state's laws: Stay up to date with the regulations and laws governing car insurance in your state, as minimum car insurance requirements vary.
• Customize your coverage: Ensure your insurance coverage fits your needs. Understand the different types of coverage, such as liability, collision, and comprehensive insurance, and choose the options that provide adequate protection for your vehicle and situation.
• Adapt to life events: As your life changes, so should your insurance. Re-evaluate your coverage when you experience life events such as getting married, having a child, or moving to a new state, as these may impact your insurance needs.
• Consider lender requirements: If you're financing a vehicle, understand the insurance requirements set by your lender, as they may mandate specific types of coverage, such as physical damage insurance.

The best auto insurance companies for military members

There are over a dozen auto insurance companies in the US, with State Farm, Progressive, Geico, and Allstate being the biggest.

When it comes to auto insurance for military members, USAA and Geico are the two companies that offer specialized savings and coverage options.

USAA

USAA is the best car insurance company for military members and their families. It offers unique coverage, incredible discounts, and outstanding customer service. USAA has the cheapest auto insurance rates on average in the country and its coverage is exclusively for active or retired military members and their spouses and children. The company consistently receives high scores for customer satisfaction, beating most competitors in the J.D. Power 2024 U.S. Insurance Shopping Study.

USAA members can earn up to a 15% discount on their comprehensive coverage by garaging their cars on military installations when deployed. They also offer a telematics insurance program, USAA SafePilot®, which can help customers save up to 30% on their premiums. USAA also offers insurance for motorcycles, recreational vehicles, and boats.

Geico

Geico is a great option for budget-conscious military drivers. They offer qualifying active-duty and former service members a discount of up to 15% off their car insurance premiums. Geico also provides tools through its Military Deployment Center to assist service members and their families when preparing for deployment.

Geico offers coverage for various vehicles like motorcycles, all-terrain vehicles, boats, and RVs. They also have other coverage types like homeowners and renters insurance, personal liability insurance, life insurance, and identity theft protection.

Frequently asked questions