Largest auto insurance companies in 2024

When it comes to buying car insurance, drivers have plenty of options. But the 10 largest insurers own about 75% of the market with the four largest providers – State Farm, Progressive, Geico and Allstate – writing just over 50% of policies. 

“Large insurers have distinct advantages,” says Siwei Gao, a professor of insurance studies at Eastern Kentucky University. She points to such factors as the ability to employ advanced technology for data analytics, systems to expedite claims handling and payment processing, economies of scale to lower costs and broaden risk pooling and superior access to reinsurance markets.

Key highlights

• State Farm is the largest auto insurer in the U.S., with more than 18% of the overall market. No. 2 Progressive has a 15% share.
• Nationwide has the cheapest sample rate among the 10 largest insurance companies, $1,548 per year.
• Allstate is the most expensive of the 10 biggest carriers, with an average annual rate of $2,509.

Which are the largest auto insurance companies in the U.S.?

Ask most consumers who are the largest car insurance providers and they can generally name a couple. That’s not by accident. The big national insurers spend a lot of time and money marketing their services, especially on TV and during popular sporting events.

In fact, the four largest insurers – State Farm, Progressive, Geico and Allstate – control over half of the entire private auto insurance market. The largest of the bunch, State Farm, controls more than 18% of the insurance sector, according to data from the National Association of Insurance Commissioners (NAIC), the research and standard-setting organization of U.S. state insurance regulators.

Here are the 10 largest auto insurance companies, ranked by market share:

How do customers rate the largest car insurance companies?

Customer satisfaction can be measured any number of ways, but customer service, claims handling and overall online experience are three of the most important. Two of the most important sources when it comes to insurance company ratings are market research firm J.D. Power and the NAIC.

J.D. Power customer surveys

Each year, market research firm J.D. Power conducts extensive consumer market studies to find out what drivers think of their current provider and how they’d rate their services. American Family, Progressive and State Farm all earned high marks in the latest surveys, but no insurer had consistently high scores across the board.

Its Insurance Digital Experience Study looks at the online customer experience, from getting a quote to managing a claim, as well as how seamless the user experience is on desktop and mobile devices. 

The firm’s Insurance Shopping Study, meanwhile, looks at broader consumer habits (like the decision to switch insurance carriers, for example). 

Lastly, the Auto Claims Satisfaction Study surveys driver experience with the entire process from filing a claim to how long repairs take.

Below, we break down the scores that the major insurers received in each study. The higher the number, the better the score. Each of the surveys is based on a 1,000-point scale. 

NAIC Complaint Index score

The National Association of Insurance Commissioners maintains a database of consumer complaints filed against insurance companies, which can be a powerful tool when shopping for coverage.

If a company has an average number of customer complaints, it will have a complaint index of 1.0. A score higher than 1.0 means it gets more complaints than average and a score less than 1.0 means it receives fewer complaints than average.

Almost all of the major insurers have better complaint records than the industry average, with the exception of American Family. However, even its score is only slightly higher than average.

Here’s how each of the largest insurers scored in the NAIC complaint index.

Which large insurance companies have the cheapest rates?

To understand the cost of car insurance in the U.S., we analyzed rates from top insurers and found a considerable range of prices.

Nationwide is the cheapest insurer on average, with an annual rate of $1,549 for full coverage. Travelers is only slightly more expensive, $1,606 per year, according to our data.

By contrast, Allstate is the priciest insurer, with a sample annual rate of $2,509.

The rates below were collected from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

How financially stable are the largest auto insurance companies?

Insurance, by definition, is all about having adequate financial protection should disaster strike, be it a major car accident or house fire. Consumers want to be sure their insurance company will be there for them when they need it most.

Credit rating agency AM Best provides consumers and investors with an evaluation of the financial stability of each insurance company, which can be a powerful tool in assessing whether they might be at risk of defaulting.

“Third-party ratings from organizations like AM Best and Fitch validate the financial stability of insurers,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute (Triple-I), which provides education and research on the insurance industry. “This provides peace of mind to consumers that their claims will be paid if they suffer a covered loss.”

All of the major insurers have credit scores of A or better, which means they’re all very financially stable and can pay out claims to their customers.

Tips for choosing the right auto insurance company

Most experts recommend comparison shopping for car insurance at least once a year to make sure you’re still getting the best price for the coverage you need.

Before contacting a carrier or using an online rate comparison tool, take some time to prepare. Here are some things to keep in mind:

• Gather multiple quotes. Most experts recommend getting quotes from at least three carriers. In addition to the big players, look at getting quotes from smaller carriers or ones that might specialize in your region.
• Determine your needs. Determining your specific needs will help you narrow down the carriers you should consider and the different coverages you may need.
• Estimate how far you drive in a year and times of day. If you don’t drive a lot or don’t use a vehicle to get to work, you can likely get a cheaper rate.
• Consider a driver monitoring app. If you’re a defensive driver who always sticks to the speed limit, consider an insurer that offers a driver behavior monitoring app or telematics program. It can earn you a big discount – as long as you don’t drive aggressively.
• Understand your current insurance policy. You will want to compare the quotes you receive against your current coverage to make sure you’re comparing apples to apples.
• Make the most of any discounts available. Most of the big carriers offer a wide range of discounts to drivers for such things as bundling policies, maintaining a clean driving record, belonging to certain professional groups, renewing your policy early and paying in full rather than monthly.
• Review your deductible. Raising your deductible (the amount you must pay before insurance kicks in) can result in substantial savings. Just be sure you can afford the higher deductible – having that amount in savings is wise.

Frequently asked questions

What is car insurance?

In its most basic form, auto insurance is a contract between you and an insurance company that protects you against financial loss in the event of an accident or theft. In exchange for paying a premium, the insurance company agrees to compensate you for your losses as outlined in your policy, up to your coverage limits and minus any deductibles.

Every state except New Hampshire requires drivers to carry a minimum amount of liability car insurance, which provides liability coverage for property damage and bodily injury you cause to others.

But a liability-only policy won’t cover your own medical bills or the cost of repairing or replacing your vehicle if you’re at-fault in an accident. For that, you’ll want to consider getting collision insurance, comprehensive insurance, and perhaps medical payments (MedPay) or personal injury protection (PIP) coverage. If your vehicle has a lien on it, your lender will probably require comprehensive and collision.

You can further customize your car insurance coverage with extra-cost policy add-ons such as roadside assistance, towing, rental car reimbursement, gap coverage or window glass replacement.

Talk to an insurance agent or company representative for more information on what types of car insurance coverage you may need.

What is the best car insurance company?

If affordability is your chief concern, check out Nationwide or Travelers, which have the lowest average rates, according to our analysis. If customer service is important, American Family, State Farm and Geico all earn high marks from J.D. Power. All of these companies are financially stable, according to ratings firm AM Best. The best car insurance company for you will ultimately be the insurer that best suits your needs.

What are the most popular car insurance companies?

“Popular” is a relative term, but if you base popularity on market share, State Farm is the most popular of car insurance companies. It controls 18.31% of the insurance market, with $58 billion in policies written. Progressive isn’t far behind with a 15.24% share of the market and $48.3 in policies written, according to the National Association of Insurance Commissioners.

Resources & methodology

Sources

•  Industry Information Institute. “Choosing an insurance company”. Accessed September 2024.
• J.D. Power “2024 insurance shopping study.” Accessed September 2024.

Methodology

Editors collected rate information from auto insurance comparison site CarInsurance.com for single, 40-year-old male and female drivers of a 2023 Honda Accord LX with a good insurance score and no violations on their record for full coverage insurance policy with liability limits of 100/300/100 and a $500 comprehensive and collision deductible.

In addition, we also calculated rates for these hypothetical drivers, but with one or more of the following on their record: speeding ticket, at-fault accident, DUI/DWI, poor credit history, or a lapse in coverage.

We analyzed more than 53 million quotes, over 34,000 ZIP codes, and 170 insurance companies nationwide.

Note: 100/300/100 means up to $100,000 for the medical bills of those you injure, up to $300,000 per accident for bodily injury liability for all persons injured in one accident, and $100,000 to repair other drivers’ cars and property you damage.

AM Best’s Financial Strength Ratings (FSRs) are an independent assessment of an insurer’s financial strength and ability to meet its policy and contract obligations. Best’s FSRs are based on a graded scale from A++ (Superior) to D (Poor). For more information, visit AM Best’s ratings guide. For the latest AM Best credit ratings, visit www.ambest.com

The National Association of Insurance Commissioners (NAIC) Complaint Index analyzes consumer complaints submitted to state insurance departments. The Complaint Index is used to compare a company’s performance to others in the market. The National Complaint Index is benchmarked at 1.0. For example, a company with a score of 2 has a complaint index that is twice as high as expected in the market. A company’s complaint index score is determined by dividing the number of complaints by its share of premiums in the U.S. market.

J.D. Power is a marketing, consumer intelligence, and data and analytics company that publishes a variety of studies on the insurance industry and carriers. The rankings included in this story originate from JD Power’s 2024 U.S. Insurance Digital Experience Study, 2024 U.S. Insurance Shopping Study and 2023 U.S. Auto Insurance Study.