What is the best car insurance company?

The best car insurance company for you depends on what you are looking for in an auto insurer. Taking into consideration financial strength, customer service ratings, available coverage options and possible discounts is important when picking the right insurance company for you. Since every driver has their own financial situation and driving profile, a company that works well for one driver might not be the best fit for you. Drivers who are categorized as high risk due to speeding tickets, accidents or DUIs, may find lower insurance rates with a non-standard carrier. If you drive a classic car or a supercar, you may need an insurance company that offers endorsements for customizations and underwrites more expensive autos. Drivers with low annual mileage or who participate in ridesharing may also benefit from inquiring about various discounts and enhanced policy options.

What do I need for a car insurance quote?

To get the most accurate car insurance quote, be sure to have the full names of all drivers that will be listed on the policy, as well as their birthdays and drivers’ license numbers on hand. You’ll also need the year, make, model and vehicle identification number (VIN) of all the vehicles you’ll be insuring on the policy. Knowing and selecting what types of coverage you want can also help you review quotes from multiple insurers to ensure you’re comparing rates accurately.

How much car insurance coverage do I need?

One of the biggest questions that drivers have is how much car insurance they need. The minimum coverage requirements for auto insurance vary by state, so consider talking to a licensed insurance agent about what coverage you need and what additional options they offer. Typically, most states require at least a minimum amount of liability insurance, and if you live in a no-fault state, you may also be required to purchase personal injury protection (PIP). Insurance experts typically recommend purchasing coverage beyond your state’s minimum requirements to ensure you have greater financial protection in the event of a large at-fault loss.

What’s the difference between a mutual insurance company and a stock insurance company?

The difference between these two is in who owns the company. With a mutual insurance company, the company is owned by its policyholders. A stock insurance company, on the other hand, is owned by shareholders. Although a stock insurance company may have its shares traded on the open market as a public company, it doesn't have to. Many stock insurance companies are held by private shareholders.

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Largest car insurance companies

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Updated Oct 25, 2024

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What are the largest auto insurance companies?

The biggest car insurance companies are determined by their direct premiums written in 2021. Using the most recent NAIC data compiled by the Triple-I, these are the 10 largest auto insurance companies in the U.S. We have included each company’s Bankrate Score, which is based on our combined analysis of things like average rates from Quadrant Information Services, coverage options and third-party information from organizations like J.D. Power and AM Best. Bankrate Scores are out of a possible five points, with 5.0 being the highest.

Company	Bankrate Score	Average annual minimum coverage premium	Average annual full coverage premium	Market share
State Farm	4.3	$666	$2,244	16.9%
Progressive	4.4	$582	$1,952	14.1%
Geico	4.4	$463	$1,732	13.8%
Allstate	3.9	$660	$2,935	10.7%
USAA*	4.2	$433	$1,673	5.9%
Liberty Mutual	3.8	Rates not available	Rates not available	5.0%
Farmers	3.8	$898	$2,668	4.6%
Travelers	4.2	$535	$1,794	2.1%
American Family	4.2	$523	$1,513	2.1%
Nationwide	4.0	$737	$1,796	2.0%

J.D. Power score: 882/1,000
AM Best financial strength rating: A++

For auto policies, State Farm is the largest insurance company in the U.S., with the biggest market share (16.9 percent) and over $46.6 million in direct premiums written in 2022. It also boasts an A++ (Superior) financial strength rating from AM Best. State Farm earned an auto Bankrate Score of 4.3, thanks in part to its nationwide availability and excellent third-party customer satisfaction scores. Additionally, State Farm may offer low average rates for those with driving incidents.

Standout features:

Large network of local agents
Two safe-driving programs available

J.D. Power score: 861/1,000
AM Best financial strength rating: A+

Progressive is also one of the biggest car insurance companies, boasting the second-largest U.S. market share with over $38.9 million direct premiums written in 2022. The insurer also carries an A+ (Superior) financial strength rating from AM Best, indicating that the company has a strong history of paying out to its policyholders when they have claims. Progressive offers a highly rated mobile app as well as multiple types of accident forgiveness, helping it earn an auto Bankrate Score of 4.4 and Bankrate’s 2024 award for Best Auto Insurance Company for High-Risk Drivers.

Standout features:

Numerous discounts
Rideshare insurance available

J.D. Power score: 874/1,000
AM Best financial strength rating: A++

Owned by Berkshire Hathaway, Geico is a giant in the auto insurance industry and carries 13.8 percent of U.S. market share, writing over $38.1 million in direct premiums in 2022. The company has earned an A++ (Superior) financial strength rating from AM Best. This financial strength rating, along with the company’s savings opportunities, helped Geico earn a 4.4 auto Bankrate Score. It also tied for the Best Auto Insurance Company Overall and the Best Budget Auto Insurance in the 2024 Bankrate Awards.

Standout features:

Long list of discounts
Robust digital tools

J.D. Power score: 889/1,000
AM Best financial strength rating: A+

Allstate boasts an A+ (Superior) financial strength rating from AM Best. It has the fourth-largest market share with just over $29.6 million in direct premiums written in 2022. Allstate’s discount opportunities and nationwide availability helped it earn an auto Bankrate Score of 3.9.

Standout features:

Offers a points-based rewards system
Coverage available for classic or custom vehicles

J.D. Power score: 890/1,000
AM Best financial strength rating: A++

USAA maintains an impressive A++ (Superior) financial strength rating from AM Best. It ranks in the top five for largest market share, writing more than $16.3 million in direct premiums in 2022. USAA’s top-notch customer service rankings, along with its lower-than-average premiums, helped it earn an auto Bankrate Score of 4.2.

Standout features:

Coverage types and discounts are geared toward military needs
Several types of insurance available

J.D. Power score: 870/1,000
AM Best financial strength rating: A

Liberty Mutual has the sixth-largest market share with more than $13.7 million in direct premiums written in 2022. The company has a lower financial strength rating than other top carriers on our list — although still relatively high — with an A (Excellent) from AM Best. Liberty Mutual has an auto Bankrate Score of 3.8, partly because of its robust coverage options.

Standout features:

Available in all 50 states and Washington, D.C.
Offers a wide range of discounts

J.D. Power score: 882/1,000
AM Best financial strength rating: A

Farmers has the seventh-largest market share at 4.6 percent, generating over $12.6 million in direct premiums in 2022. The company carries an A- (Excellent) financial strength rating from AM Best, placing its financial strength just below Liberty Mutual. Farmers allows for a highly-customizable auto insurance policy through a solid set of endorsements, helping it earn a Bankrate Score of 3.8.

Standout features:

Multiple unique discounts available
Robust website with plentiful resources

J.D. Power score: 854/1,000
AM Best financial strength rating: A++

Travelers grew dramatically between 2021 and 2022 moving from 10th to 8th biggest carrier with a market share of 2.1 percent and over $5.8 million in direct premiums written in 2022. The company sits alongside other top-rated insurers with an A++ (Superior) financial strength rating from AM Best. Travelers has a 4.2 auto Bankrate Score, thanks in part to this stellar financial strength and its coverage options.

Standout features:

Numerous optional coverage types
Various discounts opportunities

J.D. Power score: 874/1,000
AM Best financial strength rating: A

American Family maintains the ninth-largest market share with just under $5.8 million in direct premiums written in 2022. The carrier has an A (Excellent) AM Best financial strength rating. American Family scores above average in the regions where it’s included in the J.D. Power 2022 U.S. Auto Insurance Study, contributing to the company’s 4.2 auto Bankrate Score.

Standout features:

24/7 claims support
Diminishing deductible option

J.D. Power score: 868/1,000
AM Best financial strength rating: A+

Nationwide dropped to 10th place for market share with more than $5.5 million in direct premiums written in 2022 — similar to the same amount in 2021. It is still one of the biggest car insurance companies and Nationwide is backed by an A (Excellent) financial strength rating from AM Best. Nationwide tends to offer generally low rates, which is one of the reasons why it has an auto Bankrate Score of 4.0.

Standout features:

Local, independent agents available
Offers two usage-based programs

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Why should I pick a large car insurance company?

Purchasing a policy from a large auto insurer could have multiple benefits since major carriers tend to have vast resources to offer. One factor to consider when choosing the right car insurance company for you is a company’s stability.

With more premiums written, a large insurance company is often more financially stable than a smaller, regional carrier that is more limited in its scope. While some national carriers may have higher rates than regional insurers, they may also be able to offer more discounts and savings programs that policyholders can use to lower their costs.

The largest auto insurance companies also tend to offer extended customer service hours, sometimes even offering 24/7 instant support by phone and chat. Smaller car insurance companies may not have the resources to maintain these extended levels of customer support.

When it comes to whether a large insurance company or small company is better, it depends on your needs and what you want in an auto insurer.

Benefits of choosing a large insurance company

Pros

Generally more financially stable
Might offer more discounts
Extended customer service hours
Faster claims processing

Cons

Customer service can be delayed due to volume
Policyholders may receive less individualized assistance
Available agents online or via phone may be less likely to understand the unique needs of drivers in your region

Frequently asked questions

The best car insurance company for you depends on what you are looking for in an auto insurer. Taking into consideration financial strength, customer service ratings, available coverage options and possible discounts is important when picking the right insurance company for you.

Since every driver has their own financial situation and driving profile, a company that works well for one driver might not be the best fit for you. Drivers who are categorized as high risk due to speeding tickets, accidents or DUIs, may find lower insurance rates with a non-standard carrier. If you drive a classic car or a supercar, you may need an insurance company that offers endorsements for customizations and underwrites more expensive autos. Drivers with low annual mileage or who participate in ridesharing may also benefit from inquiring about various discounts and enhanced policy options.
To get the most accurate car insurance quote, be sure to have the full names of all drivers that will be listed on the policy, as well as their birthdays and drivers’ license numbers on hand. You’ll also need the year, make, model and vehicle identification number (VIN) of all the vehicles you’ll be insuring on the policy. Knowing and selecting what types of coverage you want can also help you review quotes from multiple insurers to ensure you’re comparing rates accurately.
One of the biggest questions that drivers have is how much car insurance they need. The minimum coverage requirements for auto insurance vary by state, so consider talking to a licensed insurance agent about what coverage you need and what additional options they offer. Typically, most states require at least a minimum amount of liability insurance, and if you live in a no-fault state, you may also be required to purchase personal injury protection (PIP). Insurance experts typically recommend purchasing coverage beyond your state’s minimum requirements to ensure you have greater financial protection in the event of a large at-fault loss.
The difference between these two is in who owns the company. With a mutual insurance company, the company is owned by its policyholders. A stock insurance company, on the other hand, is owned by shareholders. Although a stock insurance company may have its shares traded on the open market as a public company, it doesn't have to. Many stock insurance companies are held by private shareholders.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Bankrate Scores

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Written by

Cate Deventer

Former Writer & Editor, Insurance