Top 10 car insurance providers in the US in 2022

Top 10 car insurance providers in the US in 2022 | Insurance Business America

Top 10 car insurance providers in the US in 2022

The 10 largest auto insurers in the US underwrite almost three-fourths of the country’s car insurance policies, with combined direct written premiums exceeding $186 billion, according to the latest figures from the Insurance Information Institute (III).

But despite the auto insurance market being dominated by only a handful of key players, the products, services, and benefits these companies provide vary greatly.

Read more: Top 10 US auto insurance companies based on customer experience

To identify which of these industry giants offer the best coverage, Forbes Advisor took a “holistic view” of each company by analyzing important factors that impact customer experience. The consumer financial services firm then calculated the scores based on four key metrics:

  • Auto insurance rates (50%): Average rates for different types of drivers, including those with a good driving history; those who have caused an accident; and those with a speeding ticket, DUI charge, or poor credit - using data from Quadrant Information Services.
  • Coverage options (25%): Additional coverages that provide “greater protection or cost savings” to consumers. Forbes Advisor gave points to companies offering accident forgiveness, new car replacement, vanishing deductibles, usage-based or pay-per-mile insurance, and SR-22s.
  • Complaints (20%): The number of complaints against the insurers using data from the National Association of Insurance Commissioners (NAIC). Most auto insurance complaints centered on claims, including unsatisfactory settlements, delays, and denials.
  • Collision repair (5%): Insurer’s approach to repairs using data provided by CRASH Network, a weekly publication covering the collision repair and auto insurance market segments.

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This is how the country’s largest car insurance providers fared based on Forbes Advisor’s metrics, with the best companies achieving the highest score of 5.0. The numbers are up to date as of February 2022. The numbers for market share and direct written premiums are from III’s 2020 data, which are the most recent figures available.

1. GEICO

Market share: 13.6%

Direct premiums written: $33.9 billion

Average annual premiums for good drivers: $1,182

Collision claims repair grade: C-

Complaint level: Low

Forbes Advisor rating: 5.0

GEICO, a Berkshire Hathaway subsidiary and the nation’s second largest auto insurer tops the list, thanks to its “very competitive insurance rates” not just for motorists with a good driving history, but also for those who have a speeding ticket, poor credit, or were caught driving without insurance. GEICO also offers valuable additional features such as accident forgiveness and a usage-based insurance program to help drivers reduce premiums. The insurer was also named the best auto insurance provider for good drivers in 26 states in Forbes Advisor’s analysis. 

2. Nationwide

Market share: 2.3%

Direct premiums written: $9.8 billion

Average annual premiums for good drivers: $1,540

Collision claims repair grade: C

Complaint level: Very low

Forbes Advisor rating: 5.0

Nationwide has received the least number of complaints among the country’s largest car insurers. It also offers competitive rates for different types of drivers, including those adding teenagers to their policies and those with a poor credit history. The Ohio-headquartered insurer also provides a range of helpful add-ons, including a usage-based insurance program and pay-per-mile option for motorists who want to potentially lower their rates.

Read more: Nationwide teams up with Toyota, offers telematics-based insurance

3. Travelers

Market share: 2%

Direct premiums written: $4.9 billion

Average annual premiums for good drivers: $1,435

Collision claims repair grade: C+

Complaint level: Very low

Forbes Advisor rating: 5.0

Travelers trails only Nationwide for the least number of complaints received. The company offers competitive premiums for loan/lease gap insurance at about $39 annually. It also provides relatively low auto rates for drivers with DUI on their records, although premiums for those adding a teen driver tend to be on the high side. Among the standout features in the insurer’s policies are accident and minor violation forgiveness, and a usage-based insurance program that could provide policyholders huge discounts.

4. USAA

Market share: 6.3%

Direct premiums written: $15.8 billion

Average annual premiums for good drivers: $1,141

Collision claims repair grade: C+

Complaint level: OK

Forbes Advisor rating: 5.0

The last of the five-star-rated companies in Forbes Advisor’s list, USAA offers low rates for not only good drivers but also those with an accident, speeding ticket, or DUI on their records, as well as young and senior motorists. The specialist insurer, however, only provides car insurance coverage for veterans and active members of the military, and their immediate families. Among its policies, valuable add-ons include accident forgiveness, new car replacement, rideshare insurance coverage, and usage-based insurance.

Read more: USAA to launch telematics insurance program in most states

5. Auto-Owners

Market share: 1.3%

Direct premiums written: $3.1 billion

Average annual premiums for good drivers: $1,532

Collision claims repair grade: B+

Complaint level: Low

Forbes Advisor rating: 4.5

Auto-Owners’ optional coverage options – including accident forgiveness, diminishing deductible, new car replacement, and gap insurance – seamless claims process, and a low number of complaints make up for its relatively high average rates for certain types of drivers. Among all ranked insurers, Auto-Owners has the highest premiums for drivers with poor credit. It also imposes an average rate increase of almost $3,580 when adding a teen to a policy. The company, however, has received among the highest marks from collision repair professionals for its good claims process services.

6. State Farm

Market share: 16.2%

Direct premiums written: $40.4 billion

Average annual premiums for good drivers: $1,402

Collision claims repair grade: C

Complaint level: Low

Forbes Advisor rating: 4.5

The nation’s largest auto insurer offers the lowest premiums for drivers who have been involved in accidents or caught speeding among all ranked companies. It also provides competitive rates for senior drivers and those adding a teen to their policy. In terms of the number of complaints received, State Farm sits on the bottom half of the list.

7. Allstate

Market share: 8.4%

Direct premiums written: $25.9 billion

Average annual premiums for good drivers: $2,022

Collision claims repair grade: C-

Complaint level: Low

Forbes Advisor rating: 4.0

Allstate boasts a portfolio of helpful coverage options, including accident forgiveness, disappearing deductibles, gap insurance, and new car replacement. Policyholders can also access the company’s usage-based and pay-per-mile offerings. The company has a good track record when it comes to customer complaints, which helps offset car insurance premiums that are often higher compared to its competitors.  

Read more: Allstate makes leap into personalized auto insurance pricing

8. Erie

Market share: 1.3%

Direct premiums written: $3.3 billion

Average annual premiums for good drivers: $1,419

Collision claims repair grade: A-

Complaint level: Higher than industry average

Forbes Advisor rating: 4.0

Erie has received the highest mark from collision experts among all listed insurers for its repair claims process. However, it was one of two companies that received a higher-than-average number of complaints. Forbes Advisor also described the company’s car insurance rates as “a mixed bag depending on your driving record,” but commended its rate lock feature, which allows drivers to keep premiums the same every year unless they make certain changes on their policy such as adding or removing a vehicle.

Read more: Erie Insurance takes top auto insurance honors

9. Farmers

Market share: 4%

Direct premiums written: $9.9 billion

Average annual premiums for good drivers: $2,124

Collision claims repair grade: C

Complaint level: Higher than industry average

Forbes Advisor rating: 3.0

Farmers auto insurance rates tend to be on the high side compared to its competitors. Auto insurance complaints against the company are also higher than the industry average. One of the positives for Farmers, however, is that it offers policy features that can help drivers after a collision such as new car replacement and accident forgiveness. The company also provides rideshare insurance for Uber and Lyft drivers.
Read more: Farmers Insurance already adapting to Tesla change

10. Progressive Insurance

Market share: 13.3%

Direct premiums written: $33.2 billion

Average annual premiums for good drivers: $1,892

Collision claims repair grade: C

Complaint level: OK

Forbes Advisor rating: 3.0

The nation’s third-largest car insurance provider rounds up the rankings with a below industry-average number of complaints. The company also sits at the middle of the pack when it comes to insurance rates compared to other major industry players. Auto body shop professionals, however, give Progressive’s collision repair processes a relatively low grade compared to its industry rivals.