Ranked – America's 25 leading commercial auto insurers in 2022

Ranked – America's 25 leading commercial auto insurers in 2022 | Insurance Business America

Ranked – America's 25 leading commercial auto insurers in 2022

The US commercial auto insurance market continues its upsurge, with the top 25 insurers posting an over 13% rise in combined direct written premiums (DWP), which amounted to more than $52 billion last year, according to the latest annual figures from the National Association of Insurance Commissioners (NAIC).

Data from the association has also shown that the country’s leading commercial auto insurance providers wrote almost $45.8 billion in premiums in 2020, slightly above the $45.1 billion generated in 2019 but considerably more than the $42.9 billion written for the line in 2018.

Industry experts attributed the continued ascent to the upswing in premiums prices, which has been consistent in the past few years.

The latest commercial lines insurance pricing survey (CLIPS) from WTW revealed that the commercial auto insurance segment reported rate increases near or above double digits for the eighteenth consecutive quarter between April and June. The insurance giant expects the upward trend to continue for the rest of the year.

How does commercial auto insurance work?

As the name suggests, commercial auto insurance is a type of car policy designed for vehicles driven for business purposes. It works similarly to personal auto insurance in terms of protection but covers mainly company cars and commercial trucks and vans.

But due to the heightened risks associated with business-use vehicles, commercial car insurance premiums generally cost higher compared to the rates for personal auto policies. Prices for commercial auto insurance coverage are also influenced by the number of vehicles insured, coverage limits and deductibles, the business’s location, and even the drivers’ travel radius.

Read more: America's top car insurers in 2022 – a region-by-region breakdown

What does commercial auto insurance cover?

Auto insurance for business vehicles has the same coverage types as those in a personal car policy. These include:

  • Bodily injury liability: This covers injuries the driver causes another person and legal fees if they are sued over the accident.
  • Property damage liability: This pays out if the business’s vehicle damages another person’s property and legal defence costs incurred in a lawsuit. 
  • Combined single limit (CSL) liability: This provides one overall limit for bodily injury and property damage claims against the business rather than having two separate limits.
  • Personal injury protection (PIP): This covers medical expenses for the driver and the passengers, resulting from accidents covered by the policy. PIP is mandatory in no-fault insurance states.
  • Collision insurance: This pays for damage to the commercial vehicle in the event it hits or gets hit by another car or object.
  • Comprehensive insurance: This provides coverage for damages to the commercial vehicle, resulting from fire, flood, theft, vandalism, and covered perils.
  • Uninsured motorist (UM) coverage: This pays out for injuries the driver and their passengers suffer if they are hit by an uninsured driver.
  • Underinsured motorist (UIM) coverage: This covers medical expenses incurred when the driver or passengers of a commercial vehicle are hit by someone whose policy is not enough to cover all the costs.

Some states allow commercial vehicle drivers to purchase UM and UIM coverage separately. They can also find business-specific coverage, including those for lost business income.

Read more: Revealed – US states that require uninsured motorist coverage

What are the top commercial auto insurers in the US?

The country’s 25 largest commercial auto insurance providers controlled more than two-thirds (67%) of the market by the end of 2021, according to the NAIC’s latest annual property/casualty market share report.

Collectively, the top 10 insurers accounted for almost half, or $24.4 billion, of the companies’ direct premiums written. Here’s the list of the 10 leading commercial auto insurance firms in the US, according to the report.

1. Progressive

Headquarters: Mayfield Village, Ohio

Direct written premiums: $8.67 billion

Market share: 16.2%

The Progressive Group of Insurance Companies (Progressive) is one of the most popular insurance brands in the US. The insurance juggernaut is among the largest auto insurers and the number one motorcycle and specialty RV insurer in the country. Progressive writes more than 13 million auto policies per year, including those for commercial vehicles, selling insurance directly to the consumer or via independent agents. Progressive’s agency business, meanwhile, sells through more than 30,000 independent insurance agencies across the US.

2. Travelers

Headquarters: New York, New York

Direct written premiums: $2.97 billion

Market share: 5.6%

Travelers provides personal, business, and specialty insurance in North America and Europe through 13,500 independent agents and brokers. The insurer also employs an estimated 30,000 staff. Travelers’ commercial automobile policies cover liability, physical damage, and UM and UIM coverage for both small and large fleets.

3. Liberty Mutual

Headquarters: Boston, Massachusetts

Direct written premiums: $2.05 billion

Market share: 3.8%

Liberty Mutual Holdings Company Inc. is the sixth-largest P&C insurer globally and fourth in the US based on NAIC's 2021 data. The mutual insurer delivers personal insurance products through its Liberty Mutual and Safeco brands and works with independent agents, brokers, and benefits consultants across the country to provide business insurance solutions to clients. Its commercial auto insurance policy comes with risk control tools.

4. Old Republic

Headquarters: Greensburg, Pennsylvania

Direct written premiums: $2.02 billion

Market share: 3.8%

The Old Republic General Insurance Group is the Old Republic International Corporation’s largest business segment, specializing in the P&C market. Its 15 specialty companies operate with the same core values. Several of these companies offer commercial auto coverage, including BITCO Insurance Companies, Great West Casualty Company, Old Republic Contractors Insurance Group, Old Republic Risk Management, Old Republic Specialty Insurance Underwriters, and PMA Companies.

5. Nationwide

Headquarters: Columbus, Ohio

Direct written premiums: $1.68 billion

Market share: 3.1%

Nationwide Mutual Insurance Company is a Fortune 100 firm that provides a full range of insurance and financial services products across the US. Its insurance portfolio includes car, motorcycle, homeowners, pet, farm, life, and commercial policies. The company also offers annuities, mutual funds, retirement, plans and specialty health services. The insurer’s commercial auto insurance plans cover liability and medical payments, and offer collision, comprehensive, and UM/UIM protection.

Read more: Revealed - the most and least expensive states for car insurance in 2022

6. Berkshire Hathaway

Headquarters: Omaha, Nebraska

Direct written premiums: $1.68 billion

Market share: 3.1%

Berkshire Hathaway is a conglomerate consisting of several insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, and retailing businesses. The company’s insurance business is considered one of its “four giants,” which account for a significant chunk of the firm’s value. Berkshire Hathaway owns 100% of its insurance operations, with a massive float value of $147 billion. Its commercial insurance policies are offered through subsidiaries, including Berkshire Hathaway Homestate Insurance Company, BHHC Special Risks Insurance Company, Continental Divide Insurance Company, Cypress Insurance Company, Oak River Insurance Company, and Redwood Fire and Casualty Insurance Company.

7. Zurich

Headquarters: Schaumburg, Illinois (US office)

Direct written premiums: $1.61 billion

Market share: 3.0%

Zurich Insurance Group is a multi-line insurer that serves customers in more than 210 countries and territories. Zurich’s commercial insurance specialty lines include automotive, corporate accident and business travel, credit risk, cybersecurity and privacy, D&O liability, management or professional liability, marine, and political risk. For its automotive solutions, Zurich offers both conventional and non-conventional motor insurance, with the latter including deductible programs and captive fronting and reinsurance.

8. Auto-Owners

Headquarters: Lansing, Michigan

Direct written premiums: $1.68 billion

Market share: 2.6%

Auto-Owners Insurance Group is a Fortune 500 mutual insurance business consisting of numerous companies, including Atlantic Casualty Insurance Company, Concord Group Insurance Companies, and Capital Insurance Group. The firm insures several types of vehicles, including motorcycles, motorhomes, RVs, boats, trailers, and ATVs. It offers collision, comprehensive, and UM/UIM coverages to commercial vehicle owners in more than 20 states.

9. Allstate

Headquarters: Northbrook, Illinois

Direct written premiums: $1.15 billion

Market share: 2.1%

The Allstate Corporation is the largest publicly held personal lines insurer in the US. In 2021, the insurer ranked number 70 on the Fortune 500 list of the largest US corporations by total revenue. Allstate’s major businesses are auto and homeowners’ insurance, primarily offered through agencies. These products are marketed under the Allstate, Encompass, and Esurance brands.

10. W.R. Berkley

Headquarters: Greenwich, Connecticut

Direct written premiums: $1.1 billion

Market share: 2.1%

W. R. Berkley Corporation is an international commercial lines property and casualty insurance provider operating in two segments – insurance and reinsurance. Each of its operating units participates in a niche market requiring specialised knowledge about a product or territory. Berkley’s insurance segment underwrites commercial insurance business, with some operating units in this segment writing excess and surplus lines to cover complex risks with unique exposures. Other units, meanwhile, offer admitted insurance products and services to support a distinct regional group or the specialty risks of a particular type of customer.

Here are the rest of the top 25 commercial auto insurers in the US.

Rank

Insurer

DWP

Market share

11

Chubb

$1.03 billion

1.94%

12

The Hartford

$911 million

1.71%

13

AIG

$899 million

1.69%

14

American Financial

$880 million

1.65%

15

State Farm

$834 million

1.57%

16

Cincinnati Financial

$813 million

1.53%

17

Farmers

$806 million

1.51%

18

Tokio Marine

$805 million

1.51%

19

Selective Insurance

$791 million

1.49%

20

Sentry

$785 million

1.47%

21

Erie Insurance

$746 million

1.36%

22

Markel Corp.

$698 million

1.31%

23

Fairfax Financial

$689 million

1.31%

24

Acuity

$680 million

1.28%

25

CAN Insurance

$634 million

1.28%

Source: NAIC Property/Casualty Market Share Report 2021