Car insurance in the US is dominated by a few leading players with the largest companies regulating nearly 72% of the market. We have enlisted the 10 best car insurance companies and recommended them for you which might be the best option for you below.
According to US law, 48 out of 50 states have car insurance policy, so no question what type of car you have and how much you use it, chances are that you should cover and prevent unexpected loss of your property.
A car insurance policy will offer defense against bodily injury liability coverage and property loss as well while an insurance occurs. On the other hand, specialized insurance can cover harm to your own vehicle for a numerous reason, occurrence with underinsured or uninsured drivers, and medical expenses due to accidents. Moreover, if you are worth a home, some car insurance companies have extensive coverage options that can comprise roadside assistance or even that can be piled with homeowner’s insurance. Though most states require all drivers to at least have liability insurance, you could have a full coverage or coverage limit depending on your purchase insurance.
While the insurers include a great number of policies, they vary on service quality, price and many other features. To assist you select the best insurance provider in the USA for your demand, we have made a list of the ten best car insurance companies in the U.S. and illustrate what makes each of them unique and best. Below we will discuss the answers of the following queries and provide the best guide for you.
- What things you should know before purchasing car insurance?
- What are the best car insurance companies?
- Who is the largest car insurance provider by the state?
- How to select the right insurer for you?
What things you should know before purchasing car insurance?
Five things you should know before signing up for car insurance.
- What type of coverage does your state legally require? In most of the state, property damage liability and bodily injury liability are essential to driving, but where you live you will want to audit the specifics of insurance premiums with car insurers.
- What type of coverage do you want? Most car insurance companies provide more different policies with diverse coverage options that cover a sort of damage as well as risks, So at first, you should consider your risks and how you can make amends for them.
- Which car insurance is best? We’ve illustrated this in detail.
- 4.It’s essential to shop around. Sometimes, even the cheapest car insurance company can’t provide the best value for somebody in your condition. Like, you might want a more extensive plan that makes more sense at another car insurance provider.
- What payment policy is best for you? Insurance providers offer a variety of payment policies such as annually Vs monthly or with the transfer of electronic funds, so you have to choose which one is best for you and then sign up for it.
What are the best car insurance companies?
State Farm is the number 1 car insurance company in the United States in terms of market share as well as premiums written, followed by GEICO, Progressive and Allstate.
Yet the 10 best car insurance companies provide different insurance rates, customer claims experiences, and other characteristics. For shoppers who look for cheap rates, we always consult comparing quotes from various insurance providers to choose the best price.
Below we have enlisted the 10 best insurance companies in the U.S and illustrate more detail that you should know about each of them.
Before viewing into the list, it’s noticeable that every car insurer hasn’t your proper interest at heart, not only when you’re a victim of an accident but also when providing car insurance quotes. The State Farm, Farmers and Erie insurance are the three of a number of insurance providers that have paid cops to inquire their customers for fraud, a report published in August from Buzzfeed News. All of those providers have been expelled from this ranking.
| Rank | Company | Market share | J.D Power 2020 Claims Satisfaction Score | Premium written ($ billion) |
|---|---|---|---|---|
| 1 | State Farm | 17% | 881/1000 | $42 |
| 2 | GEICO | 13% | 871/1000 | $33.1 |
| 3 | Progressive | 11% | 856/1000 | $27.1 |
| 4 | Allstate | 9% | 876/1000 | $22.7 |
| 5 | USAA | 6% | 890/1000 | $14.5 |
| 6 | Liberty Mutual | 5% | 867/1000 | $11.8 |
| 7 | Farmers | 4% | 872/1000 | $10.5 |
| 8 | Nationwide | 3% | 876/1000 | $6.7 |
| 9 | Travelers | 2% | 861/1000 | $4.7 |
| 10 | Erie Insurance | 1.03% | 880/1000 | $7.4 |
1. State Farm
State Farm is a popular car insurance company for people who want a personalized experience, a local agent and inexpensive than average rates.
In the U.S, State Farm is the biggest car insurance provider who controls 17% of the whole market share. Spending on private passenger car insurance in the U.S almost one in five dollars is paid to State Farm.
The company currently employs approximately 70,000 employees and has nearly 19,000 agents. State Farm operates as a mutual insurance company, meaning that it’s owned by its policyholders.
The company has around 19,000 agents and recently they have appointed almost 70,000 employees. It’s conducted as a mutual insurance company meaning that it’s possessed by its policyholders.
State Farm provides the cheapest car insurance rates in most corners of the U.S among all the best broadly available car insurance in this list.
- Market share: 17%
- Mean 6-month premium: $356
- Premium written: $42 bn
- Rating of JD power: 3/5
- Rating of valuePenguin: 3.5/5
2. GEICO
We consider GEICO as one of the best auto insurance providers for offering low rates, easy shopping, and national availability.
GEICO is another popular insurance company for its animated gecko and underwriter services to more than 16 million auto policies. The company insured over 24 million vehicles having more than 36,000 employees across 9 regional offices, as well as three claims centers and three service centers.
GEICO’s original customer base turned off military personnel and U.S. government employees. Now-a-days, the company’s customers have enlarged to involve people in the private sector.
According to our point of view, GEICO is the best insurer for college students.
- Market share: 13%
- Mean 6-month premium: $410
- Premium written: $33.1 bn
- Rating of JD power: 3/5
- Rating of ValuePenguin: 4/5
3. Progressive
Progressive provides particularly competitive rates to drivers with past accidents. However, coverage options and claims satisfaction ratings are average.
Progressive was established in 1937 and is the third largest company in the country. The company provides the opportunity to buy car insurance directly, by phone, or online. Moreover, customers can sign up via independent insurance agents alternatively.
The company has more than 400 offices engaging over 33,000 employees. Progressive is a publicly traded company.
- Market share: 11%
- Mean 6-month premium: $462
- Premium written: $27.1 bn
- Rating of JD power: 3/5
- Rating of ValuePenguin: 3/5
4. Allstate
Allstate ideally has better than approximate claims satisfaction ratings but containing higher rates. However, it provides a variety of discounts that can make policies more affordable for customers.
Allstate was established in 1931 and which is the second-largest publicly traded wealth as well as an incidence-based insurance company in America. Like State Farm, Allstate has a roster of territorial agents ready to serve customers’ needs. Currently, they have more than 79,000 employees.
Esurance, which is a subsidiary of Allstate, conducts in the same space. According to Allstate, while Allstate is activated for customers who enjoy personal and local service; the Esurance brand is led towards brand-sensitive and self-directed customers as well.
In our explanation of the best car insurance companies, Allstate is our sorting for the best customer service.
- Market share: 9%
- Mean 6-month premium: $695
- Premium written: $22.7 bn
- Rating of JD power: 3/5
- Rating of ValuePenguin: 3/5
5. USAA
USAA is another best auto insurance in America. You will enjoy it highly when you show their qualification criteria especially for competitive rates, speedy claim responses along great customer service. The only drawback is their restricted membership.
The company was established by 25 Army officers who wanted to insure each other’s vehicles in 1922. At present, USAA serves up millions of members connected with the U.S army, such as present and former service members and their families, as well as cadets and midshipmen.
The headquarters of USAA in San Antonio, Texas and which Is the largest private insurance provider in San Antonio.
USAA is our top choice for veterans and army members due to focus on U.S. armed forces.
- Market share: 06%
- Mean 6-month premium: $215
- Premium written: $14.5 bn
- Rating of JD power: 4/5
- Rating of ValuePenguin: 4.5/5
6. Liberty Mutual
Liberty Mutual’s rates change by location more than the national insurance provider, and customers get the company’s claims satisfaction method as below mean.
Liberty Mutual has been staying for over 100 years in the U.S containing a large international presence as well as making operations in 17 countries. The company sells both property or casualty and life insurance or health policies.
Liberty Mutual’s auto insurance offerings can be obtained via its website, call center, a local agent or middleman as well as representatives from its network of provincial subsidiaries. One thing that should be noted is that it’s coverage rates are guaranteed for a year.
- Market share: 05%
- Mean 6-month premium: $627
- Premium written: $11.8 bn
- Rating of JD power: 3/5
- Rating of ValuePenguin: 3.5/5
7. Farmers
Farmers provide suitable discounts, high customer service, and coverage options. However, its non-competitive value may be cost-prohibitive for some buyers.
Farmers journey was started as an insurance provider giving coverage to rural farmers’ vehicles. Today, it is the seventh largest insurance company in America.
It’s difficult to search for an insurer that provides more than farmers. It provides basic car insurance, pet insurance, and even investment products among a difference from other insurance products. Farmers appoint around 21,000 people, underwriting more than 19 million policies across 50 states.
- Market share: 04%
- Mean 6-month premium: $735
- Premium written: $10.5 bn
- Rating of JD power: 3/5
- Rating of ValuePenguin: 4/5
8. Nationwide
Nationwide provides appropriate discounts and coverage you would look forward to from a large national insurance provider.
Nationwide is paid around $17 billion in claims and other advantages to members in 2018. It does business across some perpendicular- such as financial services, commercial lines as well as personal lines in all the 50 American states. Moreover, its contribution to nonprofit organizations is more than $430 million since 2000.
There is a motto in Nationwide called “On Your Side” which impresses how car insurance claims are managed, and premiums and policies are determined. Nationwide also advises to take an annual checkup to confirm policyholders to perceive their advantages and declarations, along with new changes or discounts to keep premiums solid and coverage adequate. This counsel is called their “On Your Side” Review.
According to our thought, Nationwide provides the best negotiation for customers looking to bundle and car insurance policy- among the list of the 10 best car insurance companies.
- Market share: 03%
- Mean 6-month premium: $502
- Premium written: $6.7 bn
- Rating of JD power: 2/5
- Rating of ValuePenguin: 3.5/5
9. Travelers
Travelers is one of the good choices for people because of moderate complaint ratings and a different type of discount for car insurance coverage.
Travelers is one of the oldest insurance companies in the U.S who has passed 160 years. Actually, in 1897 it revealed its first car insurance policy before the invention of Ford Model-T.
At present, the company has more than thirty thousand employees along with 13,500 independent agents and middlemen in different countries such as America, Canada and Brazil also. Uncommonly, the company provides a rate pricing program called “IntelliDrive” which identifies your rates by measuring your secure driving behavior through a smartphone app. If you can show good driving habits, the company will minimize your annual insurance rates almost 20% after enrolling IntelliDrive.
- Market share: 2%
- Mean 6-month premium: $706
- Premium written: $4.7 bn
- Rating of JD power: 3/5
- Rating of ValuePenguin: 3.5/5
10. Erie Insurance
Erie Insurance is another good choice, especially for young drivers. It offers standard policies including roadside assistance and car rental.
Erie car insurance provides outstanding advantages for young drivers that will also make parents’ minds at ease. The company covers not only roadside assistance but also hire car coverage and pays a maximum of $350 for private items damaged in car accidents.
Moreover, if they maintain an injury when riding in the insured’s car the standard policy also gives up to $500 per pet, and those who convey collision or extensive coverage, amount to pay up to $75 for locksmith services. Besides, parents can economize up to 20% by adding their unmarried kids below 21 to their existing car insurance policy.
- Market share: 1.06%
- Mean 6-month premium: $410
- Premium written: $7.4 bn
- Rating of JD power: 3/5
- Rating of ValuePenguin: 3.5/5
List of the largest car insurance companies by state
According to our research, State Farm is the largest insurance provider in our list, taking the top pick in 35 states and Washington, D.C. followed by GEICO who is taking the biggest market share in 10 states. Progressive was another largest car insurance provider containing 4 states and American Family only just one state.
Here is the list of the largest car insurance companies by state in U.S.
| State | Largest Car insurance Provider |
|---|---|
| Alabama | State Farm |
| Alaska | State Farm |
| Arizona | State Farm |
| Arkansas | State Farm |
| California | State Farm |
| Colorado | State Farm |
| Connecticut | GEICO |
| Delaware | State Farm |
| Florida | GEICO |
| Georgia | State Farm |
| Hawaii | GEICO |
| Idaho | State Farm |
| Illinois | State Farm |
| Indiana | State Farm |
| Lowa | State Farm |
| Kentucky | State Farm |
| Louisiana | State Farm |
| Maine | Progressive |
| Maryland | GEICO |
| Massachusetts | GEICO |
| Michigan | State Farm |
| Minnesota | State Farm |
| Mississippi | State Farm |
| Missouri | State Farm |
| Motana | State Farm |
| Nebraska | State Farm |
| New Hampshire | GEICO |
| New Jersey | GEICO |
| New Mexico | State Farm |
| New York | GEICO |
| North Carolina | State Farm |
| North Dakota | progressive |
| Ohio | State Farm |
| Oklahoma | State Farm |
| Oregon | State Farm |
| Pennsylvania | State Farm |
| Rhode Island | Progressive |
| South Carolina | State Farm |
| South Dakota | State Farm |
| Tennessee | State Farm |
| Texas | State Farm |
| Utah | State Farm |
| Vermont | Progressive |
| Virginia | GEICO |
| Washington | State Farm |
| Washington D.C. | GEICO |
| West Virginia | State Farm |
| Wisconsin | American Family |
| Wyoming | State Farm |
Choosing the right insurer for you
It’s always essential and hard to pick the right insurance provider among all the large auto insurance companies. We always consult to compare quotes from different insurance companies in order to choose cheap rates that can adjust your personal driver history and profile as well.
What type of auto insurance policy you like- either minimum or full coverage will affect your excerpt, so it assists to have a common idea of which coverage you’d choose before buying one.
- The least coverage car insurance is individualized by the minimum car insurance necessity in your state.
- Full coverage car insurance affixes extensive and collision coverage to your policy to save you against physical harm to your car.
We always recommend all drivers to consider buying full coverage auto insurance especially if their vehicle value is more than $2,000.
