There are thousands of licensed insurers in the United States, but the 10 largest auto insurance companies account for 74% of the market. While these top auto insurance companies are all well-known, they have different costs, customer service ratings, and different coverage options. We've broken down their differences below. State Farm is the number one largest auto insurer in the country.
Founded in 1922, it now has more than 18,000 agents in the United States. It is one of the most affordable coverage options for young and older drivers, as well as for those with previous incidents on their records. GEICO is also a good choice for those who want an insurer with a convenient app. It is one of the best insurance companies for most people looking for low rates.
However, their customer service is close to the national average for auto insurers. Progressive is often an affordable alternative not only for car insurance, but also for motorcycle coverage and other products. Founded in 1937 as a specialized insurer for high-risk drivers, it now serves a wide range of drivers in all 50 states and in Washington, DC. Many types of vehicle owners can also get coverage with Progressive and get discounts for combining more than one line of coverage.
Allstate has higher-than-average rates compared to the other larger auto insurance companies, but its local presence could make it attractive to some buyers. Founded in 1931 by Sears as a way to sell auto insurance by mail, it now has nearly 50,000 employees and an extensive network of local offices. USAA is one of the best and cheapest insurance companies in the country for members of the military and their families. Founded in 1922 as a way to provide affordable insurance to members of the armed forces, it still only offers coverage to active, reserve and retired members of the armed forces and their families.
If you can get car insurance in 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. Founded nearly 112 years ago as an investment firm in New England, it has grown to become a multinational corporation that writes policies in every state and employs more than 45,000 employees. Farmers Insurance has a great reputation for quality customer service, although its rates are more expensive than those of other large insurance companies.
Originally started out as an alternative way for farmers to get affordable insurance, it now has more than 19 million policies (and coverage isn't just for farmers anymore) in 10 million homes, along with more than 21,000 employees. Nationwide has affordable coverage compared to other large insurance companies, but its customer service is poor. Founded 96 years ago in Ohio as a way to provide farmers with economic coverage, it is now a Fortune 100 company with millions of policies in place and 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 the other major insurance companies on this list, its market is much more limited. Average rates and below average claim satisfaction make Travelers a mixed choice for many buyers. Founded in 1864 (before the invention of the automobile), Travelers has lower than average claim satisfaction according to J. D Power.