Among the industry best practices for insurance brokers are delivering client-centric service, adapting to industry changes, and having comprehensive product knowledge. These are vital for insurance professionals to stand out from the crowd, provide excellent service, and obtain and retain clients.
To meet these industry practices, it’s essential for brokers to know all about the top 10 car insurance companies in the USA and help clients find the best coverage. In this guide, Insurance Business gives you the relevant info on the biggest American car insurance providers.
The following are the 10 largest car insurance companies in the US based on market share data taken from our IB+ Data Hub platform. You can see this data for yourself, and much more, in this data resource section with options to filter by state, year, and other lines of business.
Market share: 25.66%
More than a quarter of the total market for car insurance is held by State Farm Group, which was established by George Jacob (G.J.) Mecherle in 1922 in Bloomington, Illinois. Mecherle was a retired farmer and insurance salesman and firmly believed in providing affordable auto insurance to farmers.
Initially, the company was known as State Farm Mutual Automobile Insurance Company, focusing solely on providing coverage for Illinois farmers. But in 1928, State Farm began writing policies for clients other than farmers, and they expanded operations by opening an office in Berkeley, California.
Today, State Farm is also the largest property and casualty (P&C) insurance provider in the US, with its financial strength and experience spanning over a century. As of 2023, State Farm services over 91 million accounts and policies across different insurance and financial services products.
It’s estimated that State Farm processes around 35,000 to 39,000 insurance claims daily. While the company offers nearly 100 products and services, these are the most availed-of products for their automotive insurance:
This type of coverage helps pay for the repair or replacement of an insured’s vehicle if it overturns or collides with other vehicles or objects. Collision coverage typically requires a deductible.
This coverage assists in repairing or replacing the policyholder’s vehicle if it is damaged by events other than a collision. These events include theft, fire, vandalism, or damage from hitting an animal, hail, flood, or storms. Comprehensive car insurance coverage may also require a deductible.
A fundamental component of car insurance, liability coverage, is meant to cover another party’s medical expenses, vehicle repairs, and property damage if the policyholder is found to be responsible for the accident.
This coverage helps pay for any medical expenses, distress, and lost wages if the policyholder is in an accident caused by someone with insufficient liability insurance or has none. Uninsured and underinsured liability insurance can also help cover property damage.
This type of coverage helps with the cost of medical and funeral expenses if an insured person is either injured or killed in an accident.
Drivers working for Uber or Lyft can avail themselves of competitively priced insurance from State Farm. This extends coverage from the policyholder’s auto policy and provides protection while on the app. This coverage is also available for rideshare passengers.
State Farm offers commercial auto insurance for company-owned or leased vehicles for business purposes. This covers cars, box trucks, pickup trucks, flatbed trucks, farm vehicles, and vans.
This type of coverage can take care of repair costs, legal fees, and medical expenses in case of a business-related accident. Note that commercial auto insurance is generally required by law in most states for most businesses that operate vehicles as part of their daily operations.
While State Farm is the top car insurance company in the US, it offers comprehensive coverage for many types of vehicles, apart from cars. State Farm also provides coverage for:
In general, the company offers affordable car insurance for different types of drivers, including teenagers and drivers with records of traffic violations. State Farm offers incentives to clients who want lower rates via special discounts and bundling insurance products. They can also participate in State Farm’s safe driving programs.
Market share: 6.18%
Progressive Group ranks second in our list of the top 10 car insurance companies in the US. It was founded in 1937 by Joseph Lewis and Jack Green. First named as the Progressive Mutual Insurance Company, Lewis and Green sought to provide security and protection for vehicles via affordable auto insurance and exceptional service.
As its name suggests, Progressive focuses on developing and delivering innovative approaches to car insurance. For instance, Progressive was the first company to use telematics insurance via its Snapshot program. First introduced in the mid-1990s, Progressive’s telematics insurance, aka usage-based insurance (UBI), shifted traditional, credit score and demographics-based auto insurance to a more behavior-based approach.
Progressive specializes in non-standard, high-risk auto insurance and has many insurance and non-insurance subsidiaries and affiliated companies. The company also provides residential property insurance, apart from its personal and commercial auto insurance offerings.
While Progressive is mostly known for its car insurance, the company is also very popular with motorcycle riders. Progressive is a leading motorcycle insurer in the US, with its policies starting at only $75 per year. The company provides freedom of choice for motorcyclists, since they are afforded the option of using OEM parts for repairs and maintenance. Progressive is known for these insurance products:
Required of all drivers in most states, Progressive’s liability coverage is meant to protect the policyholders in case of an accident. This coverage handles property damage and injuries to others if they are deemed responsible. Related legal expenses are also covered.
This fundamental coverage is designed to handle damage to the policyholder’s car due to causes other than a collision. Theft, vandalism, hitting an animal, or damage from floods, storms, or hail are covered by this type of policy. Although this is not typically mandatory, comprehensive coverage may be required by lenders if your client decides to finance or lease their vehicle.
Regardless of who is at fault, collision coverage handles the expenses related to repairs to the insured vehicle. As with comprehensive cover, this coverage is often required when the insured vehicle’s owner leased or financed the vehicle.
Required in some states, UM or UIM cover can pay for the medical treatment of the policyholder if they are hit by someone who lacks or doesn’t have enough insurance. Property damage is also paid for by this coverage.
MedPay helps cover medical expenses for the policyholder and their passengers due to an accident, regardless of who is at fault. PIP, meanwhile, may cover other medical expenses and related expenses, like lost wages, medication, and prosthetic devices. This likewise applies to the policyholder and their passengers, regardless of who is at fault.
Mexico auto insurance
Part of their vehicle insurance includes an interesting product called Mexico auto insurance, which covers vehicles before going on a road trip to Mexico. This is useful for motorists going on a day trip or an extended vacation south of the border, where standard US coverage would not apply.
This can cover modifications made to the insured vehicle, such as custom rims, stereo system, or other accessories that are not typically covered by other car insurance companies.
This sort of insurance is designed to cover the amount the policy owner owes on their vehicle’s loan or lease and its actual cash value if the vehicle is totaled. Progressive offers this coverage and can pay up to 25 percent over the car’s actual cash value.
If a policyholder has both collision and comprehensive coverage, they can participate in a program that reduces their deductible by $50 for each six-month period they remain claim-free.
This handles the insured car’s system repairs (i.e. electricals, cooling systems), lost, damaged, or stolen electronic keys, minor scratches or dings, and more.
Market share: 4.46%
The United Services Automobile Association (USAA) was founded in 1922 in San Antonio, Texas. Its original founders were a group of 25 US Army officers who wanted a company to provide mutual self-insurance. The company was founded because military officers struggled to find coverage from other insurers due to their perceived high risk.
USAA primarily serves as a financial services provider offering insurance and banking products exclusively to members of the military, military veterans, and their families. Originally called the US Army Automobile Association, its name was changed in 1924, since eligibility for its products branched out to include officers from other US military services like the Navy and Marine Corps.
USAA redefined its eligibility to include National Guard and Reserve military members in 1973 and enlisted men in 1996. More changes in 2008 and 2009 were made to include all military personnel, retirees, and honorably discharged veterans, including their families.
USAA has a variety of insurance products and services, and many members find great value in bundling their insurance and banking services. Choosing bundled services can give USAA-eligible military servicemen and their families competitive rates and high convenience. These are some of the company’s more popular offerings:
This cover helps pay for damage resulting from driving-related incidents like collisions with stationary objects or other cars.
USAA’s liability coverage protects the policyholder’s assets in case they are found to be responsible for another person’s injury or death in a vehicular accident. This also helps cover the cost of repairing or replacing the other person’s vehicle. Unlike collision and comprehensive coverage, liability coverage does not have deductibles but has policy limits.
These coverages handle costs for injuries to the policyholder and their passengers, in case they are involved in an accident caused by someone with insufficient or no insurance. This may also cover vehicle damage due to hit-and-runs, depending on the policyholder’s location.
USAA’s roadside assistance can help policyholders if their vehicle breaks down and needs towing. This service can also include assistance with unlocking a vehicle, delivering gas, or changing a flat tire.
Insurance brokers and those eligible for USAA’s products should note that USAA has home insurance that can be bundled with their car insurance; doing so can give savings on insurance costs of up to 10 percent.
To attract and retain clients, the USAA offers perks like:
MemberShop Online Shopping – allows USAA members to choose from over 1,100 MemberShop stores that have special offers and free shipping
Shopping discounts – USAA members enjoy discounts on certain items like flowers, food, and gift items (up to 25 percent) and a 30 percent discount on a special USAA collection
Market share: 4.35%
The Berkshire Hathaway Group, chaired by the famous “Oracle of Omaha” Warren Buffett, is a multinational conglomerate with significant holdings in various industries and sectors. One of its business divisions includes a car insurance division that operates through several subsidiaries.
These are BH Group’s subsidiary companies that offer car insurance in the US:
This group offers commercial auto insurance that includes liability insurance, physical damage, and statutory coverage. Policies from these companies are designed to cover companies with one vehicle or several.
Berkshire Hathaway GUARD Insurance Companies are rated A+ (Superior) by AM Best and operate via a network composed of over 6,000 independent agents and brokers. It offers a wide range of commercial and personal lines insurance products.
Get to know about insurance ratings companies and why they’re important players in the industry in this guide.
BHHC offers comprehensive commercial auto products in 36 states. The group targets a range of commercial vehicles ranging from long-haul trucks and public transport. Composed of six insurers, BHHC aims to provide commercial auto insurance products with the backing of the financial strength of Berkshire Hathaway.
Part of the Berkshire Hathaway Group, National Indemnity has a wide selection of commercial auto insurance products.
Car insurance giant GEICO is perhaps the most well-known subsidiary of Berkshire Hathaway, since GEICO has one of the best insurance ads of all time and one of the best and most recognizable mascots.
GEICO became the sixth-largest US auto insurance company in late 1998 and became the third largest private auto insurance company in the US in 2024, behind State Farm Insurance and Progressive Insurance. As one of the top car insurance companies in the US, GEICO markets its policies mainly via direct response methods, letting customers apply for coverage directly online or through their phone.
This subsidiary offers comprehensive business insurance that can include auto insurance for businesses and combine multiple crucial coverage options into one policy. With an A++ rating from A.M. Best, this product was created with the intention of simplifying insurance for small businesses, doing away with the fine print and offering comprehensive coverage with minimal complexity.
This is an insurance company that caters to small businesses and provides commercial auto insurance as part of its many products. biBerk aims to make the insurance process as simple and as quick as possible for small business owners, even allowing them to get quotes and coverage online.
Market share: 4.28%
Founded in 1912 and headquartered in Boston, Liberty Mutual is one of the largest global P&C insurers. Its wide range of insurance products and financial services helps people feel secure by mitigating the risks they face. As of the end of FY 2024, Liberty Mutual’s earnings report shows an annual consolidated revenue amounting to $50.2 billion, while earning a net income of $4.4 billion in 2024.
Liberty Mutual currently ranks 87th on Fortune’s 100 list of largest companies in the US, based on 2023 revenue. As of this writing, the company employs about 40,000 people worldwide and has operations in 29 countries.
Liberty Mutual offers a wide array of insurance products and services, apart from auto insurance. These are the company’s more popular auto insurance products:
As with most other liability insurance policies, Liberty Mutual’s liability coverage handles bodily injury and property damage. Medical bills, car repair bills, and other related expenses are all covered by this policy if the policyholder is found legally responsible for the accident.
This covers damage to the insured vehicle from incidents other than a collision. These incidents include theft, vandalism, fire, hail, flood, or falling objects. This coverage is typically required if the vehicle is on a lease agreement or is purchased through bank financing.
This covers damage due to collisions with stationary objects or other vehicles. Rollover accidents and pothole damage may also be covered.
Liberty Mutual also offers a range of optional coverages for additional protection, such as:
Better car replacement: if the insured car is totaled, this coverage gives the policyholder the money to buy a car that is newer by at least a year, ensuring that the policyholder has a more recent model
Medical payments coverage (MedPay): covers initial medical expenses related to an accident, regardless of who is at fault. It also covers the medical expenses of passengers
Original parts replacement: cover can replace any damaged parts of the insured vehicle with parts that meet high-quality standards
Rental car reimbursement: pays for the cost of a rented car while the policyholder’s daily driver is being repaired or replaced
Accident forgiveness: This optional coverage protects policyholders from a premium increase after their first at-fault accident. Accident forgiveness can apply only if their driving record has been clear of accidents or violations for the past five consecutive years
Visit the IB+ Data Hub to access an innovative insurance analytics dashboard, with data sortable by year, state, line of business, and more!
Market share: 3.93%
As part of Sears, Roebuck and Co., Allstate Insurance was founded in 1931. The company then became a separate entity in 1993, but Sears remained a part-owner. Allstate only became completely independent in 1995. The Allstate Insurance Company is one the largest publicly-held personal lines insurers in the US, and is widely known for its slogan, “You’re in Good Hands with Allstate.”
Allstate maintains that its mission is to help customers protect what matters most and assist them in preparing for life’s uncertainties. The company owns and operates 19 companies across the US, UK, Canada, and India. Its major business is private passenger auto and homeowners’ insurance, offered through its various brands, including:
Allstate Insurance offers most of the usual types of coverage like:
Apart from the standard policies, Allstate offers several coverage options to complement these policies and offer more extensive protection:
The feature keeps the policyholder’s premiums from rising after their first at-fault accident. Note that this can only apply if they have not had an accident or violation for a certain period.
If the policyholder’s car is totaled within its first few years, they can get money for a brand-new replacement with this coverage, and not only the depreciated value.
Also called gap insurance, this coverage covers the difference between the insured vehicle’s actual cash value and the amount still owed on the lease or financing of the vehicle if it is lost (totaled or stolen).
This pays for the cost of a rental car while the insured vehicle is being replaced or repaired due to a covered claim.
PIP provides cover for any medical expenses for the policyholder and their passengers, regardless of who is at fault in the accident.
Allstate offers clients ways to better personalize their insurance rates and give them the opportunity to get discounts via these programs:
Drivewise is a program that tracks policyholders’ driving habits via a mobile app. This program also offers discounts for safe driving behaviors.
This is a pay-per-mile insurance program that charges a daily base rate and a per-mile fee. Milewise is one program that can benefit those who don’t drive as often.
Allstate also provides special discount programs for clients who obtain multiple policies, those who sign up early, have new cars, or opt for automatic payments. These programs can help lower insurance rates.
Market share: 3.9%
Travelers was officially established on April 1, 1864, by James G. Batterson in Hartford, Connecticut, making it the oldest car insurance company in America. Travelers issued the very first auto insurance policy in the US in 1897. Its first informal insurance agreement was providing insurance for banker James Bolter’s short walk home for two cents. Travelers also holds the distinction of first selling life insurance in 1865, also making it the first insurance company to sell more than one type of insurance.
The company went through a lot of mergers and acquisitions throughout its history, changing its name from Travelers to Travelers Group in 1995, two years after being acquired by Primerica. Travelers Group bought Aetna’s P&C business in 1996, then merged with Citicorp to form Citigroup in 1998, but then spun off from that merger to become Travelers P&C in 2002.
In 2007, Travelers again changed its name to The Travelers Companies Inc. and reacquired the rights to Citigroup’s red umbrella logo. As of 2024, Travelers reported total revenue of $46.4 billion, with a core income of $5 billion for that year alone.
As with most of the other top 10 car insurance companies in the USA, Travelers provides the core car insurance products like liability, collision, and comprehensive coverage. Here are some of the other car insurance policies that are more popular and distinct for Travelers:
This cover can help pay for damages and medical expenses incurred by a driver who has insufficient or no insurance at all. Whether the policyholder is driving or is a pedestrian, they are covered, and this can be required in some states. This coverage also extends to the policyholder’s family members who live with them.
PIP aka no-fault insurance is mandatory in some states and pays for medical bills, and lost wages and other damages on occasion. This is paid regardless of who is at fault. Medical payments cover takes care of the policyholder and their passengers in case of an accident, regardless of fault as well. This cover also protects the policyholder as a pedestrian.
This policy applies to vehicles that are leased or purchased via financing. Gap insurance helps cover the difference between the insured vehicle’s current value and what is still owed, reducing out-of-pocket expenses.
This is simply a rental car reimbursement. If a policyholder needs to rent a car temporarily as their primary vehicle is being repaired or replaced, this cover takes care of the rental car expenses.
Policyholders can have 24/7 emergency assistance should they experience any car trouble, like a dead battery or flat tire. Premier plans with this feature may also cover lodging and meals if the policyholder’s vehicle is disabled more than 100 miles from home.
Travelers’ Premier New Car Replacement can pay to replace a totaled car that’s only been owned within five years.
Market share: 3.56%
Chubb & Son’s business model consisted of charging $1,000 each from prominent merchants to insure their cargo. Over time, the company built strong relationships with insurance agents and brokers and a good reputation for helping policyholders avoid financial ruin.
The present-day Chubb is the result of its acquisition by ACE Limited, which was founded in 1985 to address a crisis in the US insurance market for excess liability and directors’ and officers’ insurance.
ACE Limited then grew via product diversification, strategic partnerships, and acquisitions, which included the acquisition of Cigna Corporation’s P&C business, the Insurance Company of North America (INA), in 1999. Then, in 2016, ACE Limited acquired the Chubb Corporation, resulting in it becoming a leading global insurance company that operates under the Chubb brand. The company’s stock is part of the S&P 500 Index, and as of 2022, Chubb became the world’s largest publicly traded P&C insurer with a market cap of $87 billion.
Chubb’s auto insurance options consist of standard policies like liability insurance, comprehensive, and collision insurance. However, Chubb’s coverage can come with unique features for high-end clients.
Some of these products include:
Chubb’s auto insurance can extend coverage for a rental car driven almost anywhere in the world. This coverage has no per-day limits on rental car reimbursement in case of a covered incident. Coverage is up to $15,000 in total. This enables clients to rent a vehicle that suits their lifestyle, such as renting an SUV instead of a standard sedan.
Chubb’s auto insurance ensures that if the policyholder’s car is in an accident, the repairs will be made with original parts. This is a distinct feature, since most auto insurers may only cover less expensive aftermarket parts. Chubb Collision Repair Experts will oversee repairs, ensuring that the vehicle is restored to pre-claim condition.
With this policy feature, policyholders can choose their repair shop or choose a Chubb-recommended repair shop. If the car is repaired at a Chubb-certified shop, there is a lifetime guarantee on the repairs.
With this cover, the value of the policyholder’s car is determined and guaranteed right at the time of writing the policy. If the insured vehicle is stolen or destroyed, the policyholder receives a check for the agreed amount, regardless of the vehicle’s age or mileage as of the policy period.
This is a feature that can be particularly useful and beneficial for owners of collector cars. For total losses, the policyholder may also choose to keep the damaged vehicle and its parts, with Chubb paying for the agreed value less the salvage value.
Chubb’s high coverage limits can reach up to $10 million for auto liability and $1 million for uninsured/underinsured motorist protection. These unusually high coverage limits can provide policyholders with robust financial protection in the event of a covered incident.
Chubb’s insurance for classic cars applies to cars that are at least 30 years old, are part of a larger collection, or are a limited production model. These vehicles are not daily drivers, but rather garaged and exhibited only during car shows, exhibitions, car club events, or parades.
There is no mileage limit for these hobby vehicles, and authorization is not required for non-competitive tours or rallies. Chubb covers the policyholder’s cost of repairs in their repair shop and requires OEM parts or quality fabrications if no original parts can be sourced.
This is a usage-based insurance option made available via the Chubb mobile app. SafeLane measures the household’s driving behaviors to encourage safety and potentially provide premium discounts.
Drivers can get a 10 percent discount merely by enrolling in this feature and earn up to 20 percent by maintaining good driving habits for at least 91 days or 500 miles per driver. If risky driving behaviors are detected, drivers do not earn discounts but do not incur surcharges or penalties.
Market share: 2.94%
Farmers Insurance was founded in Woodland Hills in Los Angeles, California, by John C. Tyler and Thomas E. Leavey in 1928. They founded the company with the specific goal of providing car insurance to rural ranchers and farmers largely considered to be low-risk drivers.
In its first two years of operations, Farmers Insurance successfully issued about 40,000 policies in the rural market. This was followed by brisk expansion of its staff and agent network. By 1931, Farmers had offices in nine different states. Its assets exceeded $1 million a year later.
When the Great Depression struck, Farmers stood out as the car insurer that paid out cash claims, compared to other car insurance companies that offered non-negotiable paper payments.
In 1988, Farmers became a wholly owned subsidiary of B.A.T. Industries, after its acquisition for $5.2 billion. Today,it operates as a subsidiary of Zurich Insurance Group and is one of the top 10 car insurance companies in the US. Farmers maintains a vast network of 48,000 independent and captive agents and 21,000 employees serving over 10 million households with over 19 million individual policies.
To support its extensive network, Farmers Insurance provides the standard policies that are required in most US states. Essential policies offered by Farmers include collision, liability, and comprehensive cover. These are some of their distinct car insurance products:
Enrolling in this program gives customers an initial 10 percent discount, with potential additional savings of between 5 percent and 20 percent when renewing. These additional discounts are earned through safe driving behaviors. The program tracks a driver’s speed, braking, acceleration, time spent driving, and cell phone use.
This provides coverage for drivers of rideshare companies and drivers of app-based food delivery services. Drivers get the coverage they need, even if their companies do not provide insurance or the drivers do not have personal insurance. This does not cover periods when a passenger is not in a rideshare vehicle.
This cover protects certain aftermarket accessories or equipment like infotainment systems or customized wheels. Custom equipment coverage can help pay for replacement or repair costs if the vehicle has collision and comprehensive coverage.
This program is particularly beneficial for employees and affinity group members, since Farmers GroupSelect offers discounted auto insurance that’s customizable to fit individual budgets and needs.
Benefits include rewards for claim-free driving, bundled policy savings, automated payments, and claim reporting 24/7.
This is telematics-based insurance that allows customers to earn an initial discount for using Farmers’ Signal app and practicing good driving habits. Drivers under 25 can earn even more discounts if they exhibit good driving. The Signal program also provides the chance of winning monthly prizes.
Market share: 2.1%
Also known as AmFam, this company was established in Wisconsin by Herman Wittwer. Like the founders of State Farm and Farmers Insurance, Wittwer believed that farmers were low-risk drivers. He also believed that they deserved access to cheaper auto insurance premiums.
So, in 1927, he founded Farmers Mutual Automobile Insurance Company. A few years later, Wittwer created the National Mutual Casualty Company to cater to non-farmers. Then in 1933, the two companies merged.
The company became more diversified in the 1950s, with homeowners and life insurance added to their product portfolio. In 1963, the company was renamed the American Family Mutual Insurance Company to more accurately represent its wider customer base and expanded range of products. AmFam’s diversification continued with the addition of commercial insurance in 1975 and the acquisition of other companies.
Today, American Family is a major player in the US auto insurance market, offering various types of insurance coverage for different customers. The company now remains synonymous with a variety of coverage options and discounts and maintains a strong financial rating and good industry reputation.
This car insurance company offers the standard collision, comprehensive, and liability insurance required by law. But apart from the standard policies, these are types of coverage or coverage add-ons available:
Rental reimbursement coverage: covers transportation while the insured car is being repaired due to a covered incident
Emergency roadside assistance: provides aid for emergencies like accidental lockout, flat tire, or dead car battery
Gap insurance: helps pay off the auto loan if the car is totaled or stolen. This coverage can be essential for policyholders who owe money on their car financing that is more than the vehicle’s worth
Accident forgiveness: protects the policyholder from a premium increase after their first at-fault incident.
New car replacement protection: covers the full cost to replace a new car if it’s totaled
AmFam also offers unique usage-based car insurance, namely:
This program makes use of a smartphone app that monitors driving behavior. DriveMyWay offers a 10 percent introductory discount and potential savings of between 5 percent to 20 percent for safe driving. This is a good option for drivers who want to limit their insurance costs by practicing good driving habits.
This is ideal for drivers who don’t drive much, typically traveling less than 8,000 miles a year, and want to pay based on their mileage. MilesMyWay offers an instant 5 percent discount upon signing up and may give savings of up to 25 percent when renewing the program. MilesMyWay often involves installing a small sensor in the car or using an app that takes photos of the car’s odometer, then sending them for evaluation.
When trying to find the best car insurance policies, whether from the top 50 auto insurance companies or the top 10 car insurers, people usually choose products from insurers with the strongest financial stability. However, this should not be the only criterion for making the best choice.
Brokers and consumers should do their due diligence and examine as many aspects as possible of the insurance company they are considering buying insurance from. That includes looking at costs of premiums and discounts, customer service ratings, claims satisfaction rates, digital tools, and customer resources. The client’s budget and financial objectives should likewise be considered to make the most informed choices.
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