There are thousands of licensed insurers in the United States, but the 10 largest insurance companies account for 74% of the auto insurance coverage market. While these top auto insurance companies are well-known, they have different costs, customer service ratings, and coverage options. Below, we break down their differences and compare rates to help you find the best and most affordable car insurance.
State Farm
is the largest auto insurer in the country, accounting for 16% of the entire auto insurance market.Founded in 1922, State Farm now has more than 18,000 agents in the United States. It is one of the most affordable coverage options for young and old drivers, as well as those with previous incidents on their record. In addition to being one of the largest insurance companies in the US, State Farm also has one of the highest customer service ratings.
GEICO
is often an affordable alternative not only for car insurance but also for covering motorcycles and other products. Founded in 1937 as a specialty insurer for high-risk drivers, Progressive currently serves a wide range of drivers in all 50 states and Washington D.C. Many types of vehicle owners can also get coverage with Progressive. Because the company has affordable options for motorcycle owners, renters and boats, among others, you can also get discounts by combining more than one line of coverage.
Allstate
has higher than average rates compared to other larger auto insurance companies, but its local presence could make it attractive to some buyers. Allstate was originally founded in 1931 by Sears as a way to sell auto insurance by mail.Today, Allstate has expanded to become a major auto insurance company with nearly 50,000 employees and an extensive network of local offices. While Allstate rates are more expensive than the average cost of coverage, buyers who want easy access to a physical office in their community are likely satisfied with the company.
USAA
is one of the best and cheapest insurance companies in the country for military members and their families. Founded in 1922 as a way to provide affordable insurance to members of the armed forces, USAA still only provides coverage to active, reserve and retired members of the military and their families. If you can get car insurance with USAA, you have access to one of the best (and cheapest) insurance companies.Liberty Mutual
has a wide range of discounts that could result in substantial savings for some drivers.Liberty Mutual has been in business for nearly 112 years and has gone from being a mutual entity in New England to a multinational corporation that writes policies in every state and employs more than 45,000 employees. A weak point of Liberty Mutual compared to other large auto insurance companies is its reputation for customer satisfaction.
Farmers Insurance
has a strong reputation for quality customer service, although its rates are more expensive than those of other large insurance companies. Farmers was originally created as an alternative way for farmers to get affordable insurance, but today the insurer has more than 19 million policies (and coverage is no longer just for farmers) in 10 million households, along with more than 21,000 employees.Nationwide
has affordable coverage compared to other large insurance companies, but its customer service is poor. Nationwide was founded 96 years ago in Ohio as a way to offer farmers cheap coverage.Today, Nationwide is a Fortune 100 company with millions of policies in place and it's no longer just for farmers.
American Family
only offers car insurance in 19 states (many of them in the central part of the country). Compared to other major insurance companies on this list, American Family's market is much more limited.Travelers
is the oldest company on our list of largest auto insurers. Founded in 1864 before even the invention of automobiles, Travelers has average rates but lower than average claim satisfaction according to J. D Power.However, Travelers' rating for its claims satisfaction service is better than that of Allstate.
