Top national and regional car insurance companies in the U.S. in 2024

Just a handful of companies dominate the insurance market in the U.S., and for many drivers these carriers fit their needs. But when shopping for car insurance, it’s important not to overlook some of the smaller state or regional car insurance companies. In some cases, they may offer cheaper rates and better customer service than the big players.

In fact, according to a 2024 consumer survey undertaken by market research firm J.D. Power, it was regional insurers that received the highest customer satisfaction rates. Erie Insurance, a Pennsylvania-based insurer that serves 12 states on the East Coast and Midwest, received top marks in the survey, followed by the Automobile Club of Southern California, which serves California and 19 other states.

This article looks at both national car insurance carriers like State Farm or Geico that do business in most or all 50 states, plus Washington, D.C., as well as regional companies like Erie Insurance, which operates in a dozen states in the Midwest and Mid-Atlantic. We also included smaller firms that may only have a presence in a single state like the Texas Farm Bureau.

Key highlights

• Auto-Owners Insurance, which is one of the larger regional carriers, has a sample annual rate of $1,554, which is cheaper than many national insurers we looked at.
• Erie Insurance has an even lower average annual rate of $1,480, but it is available in only a dozen states.
• In addition, Erie Insurance earns the highest score among national and regional insurers for customer satisfaction in J.D. Power’s annual auto insurance study.

Should you choose a national or regional car insurance company?

For many drivers, the best car insurance company is the one that offers adequate coverage at an affordable price. If you’re shopping for auto insurance, experts say, don’t discount regional or local carriers just because of their size.

“They are very competitive with national insurers [on price and coverage options],” says Mark Friedlander, director of corporate communications for the Insurance Information Institute (Triple-I), which provides education and research for the industry. “Some regional insurers are known for exceptional levels of customer service and claims handling.”

Erie Insurance, for example, has been the top-rated car insurance company in the J.D. Power 2024 U.S. Auto Insurance Study for four consecutive years in the North Central region and three straight years in the Mid-Atlantic region. And its average annual rate of $1,480 is cheaper than any of the national insurers whose rates we analyzed. 

But Erie writes policies only in a dozen states plus Washington., D.C., eliminating it as an option for a sizable number of drivers in the U.S.

Top U.S. car insurance companies

Four companies control more than half of the U.S. auto insurance market, according to the National Association of Insurance Commissioners (NAIC). State Farm is the largest, with 18.31% of the market. Progressive, Geico and Allstate round out the top four. Together, the top 10 insurers control just over three-quarters of the market.

That size confers some advantages, such as having the financial stability to suffer years of big claims losses or devastating natural events like flooding or wildfires.

“This helps alleviate concerns over claims being paid if you suffer a loss,” says Mark Friedlander, director of corporate communications for the Insurance Information Institute (Triple-I), which provides education and research for the industry.

“They also have the financial resources to invest in tech-enabled solutions to improve the customer experience.”
Within the top 10 national car insurance companies, drivers will find quite a range of premiums. Nationwide has the cheapest average annual rate at $1,548, with Travelers about $60 more. Allstate, by contrast, is the most expensive insurer in our survey, with a sample yearly 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. 

Top midsize and regional car insurance companies

Depending on where you live, you may be able to find competitive rates from a smaller or regional car insurance company. Auto-Owners Insurance, for example, is licensed to do business in 29 states from the Southeast to New England to the Southwest. Its average annual rate of $1,554 is nearly $350 less than the national average. Grange insurance is even cheaper, averaging $986 annually, but it is only available in 13 states in the Midwest and Southeast.

By specializing in just one state or region, some insurers can limit their exposure to risk, such as areas prone to damaging hail, floods, tornadoes or hurricanes and can offer rates lower than larger insurers.

“Auto insurance remains the most competitive insurance marketplace in the U.S.,” the Triple-I’s Friedlander says. “In addition to dozens of national and regional insurers, there are many start-ups that entered the market...”

Not all state or regional carriers have cheap rates, however. Among insurers we analyzed, the Oklahoma Farm Bureau had the most expensive annual rate, $3,295. Alfa Insurance, which serves just eight states in the Southeast, is almost as pricey, with a sample yearly rate of $3,225.

You may also be able to find insurance through your state farm bureau, which typically do business only in their home states and may also limit membership to certain professions. Groups such as the Texas Farm Bureau and Virginia Farm Bureau are part of a national affiliation that represent farmers, members of the agricultural community, and residents of rural areas. 

These organizations offer insurance at a discounted rate to its members as a perk, and in some cases it can be cheap. For example, the average annual rate for full coverage with Texas Farm Bureau is $1,301, more than $500 less than the national average. Texas Farm Bureau also ranked No. 1 among car insurers in the state for customer service, according to J.D. Power’s annual survey.

Here are samples of average annual automobile rates available from various midsize and regional insurance companies:
 

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 pay your losses as outlined in your policy.

When shopping for car insurance, you have a range of coverage options from a liability-only policy that meets state law for minimum coverage amounts to a full-coverage policy that has very high comprehensive and collision limits and a low or no deductible. Many insurers also sell riders or add-ons for additional specialized coverage, such as for towing and rental in the event of a mechanical breakdown.

Is car insurance required?

Nearly every state (except New Hampshire) requires drivers to carry a minimum amount of liability insurance. If you don’t own a vehicle, you are not required to buy car insurance, but in some cases, it may be advisable to obtain a non-owner car insurance policy. For example, if you frequently drive someone else’s vehicle, rent cars often or use car-sharing services, consider a non-owners policy.

How do you choose the right car insurance provider?

When shopping for car insurance, it’s best to consider a variety of factors. Premiums rates are often top of mind, but take into account a company’s reputation for customer service, claims satisfaction, discounts available and overall financial stability. Insurance is all about having peace of mind and you want to be confident that you’ve chosen the right provider.

How do you find car insurance companies near you?

Finding a car insurance provider near you has gotten increasingly simpler thanks to a variety of online directories and car insurance quoting engines. By simply plugging in a few details about where you live, the type of vehicle you drive and personal details like age, sex, and marital status, online aggregators can instantly retrieve quotes from a wide range of providers. 

Resources & methodology

Sources

• National Association of Insurance Commissioners, “2023 market share data”. Accessed August 2024.
• J.D. Power “2024 Insurance Shopping Study”. Accessed August 2024.
• Erie Insurance, “About us: Our History.” Accessed August 2024.
• Alfa Insurance, “About Alfa.” Accessed August 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.

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.