Car Insurance Information

Print

By: Natasha Carr, contributing writer at Kanetix.com.

Your list of the top 10 companies by market share

When drivers search for car insurance, they are looking for a number of different factors. Some drivers are looking for affordability or customer service while others are looking for a trusted brand or reputation.

To help you size up the car insurance market, the following list details America’s top 10 car insurance companies according to their market share as published annually by the Insurance Information Institute. Also included is a brief description of each insurers history and their specific expertise in the industry:

1. State Farm Auto Insurance Company– Of all the car insurance companies in the United States, State Farm has provided the most policies. The company serves about 20 percent of the auto insurance market – and in an industry featuring scores of competitors, that’s impressive. State Farm was established in 1922 and many Americans believe, State Farm is like a good neighbor.
As its name suggests, State Farm initially served farmers. It was the first car insurance company to recognize that rural farmers were a less risky demographic and should therefore get lower auto insurance rates. Today, State Farm is preferred by farmers, city dwellers and everyone in between. The company is especially well-regarded for its quick and hassle-free payment of claims.
2. Allstate Auto Insurance Company– Allstate is America’s second largest car insurance company and serves about 10percent of the market. Allstate owes much of its success to its long affiliation with Sears, Roebuck & Company. Founded as part of the Sears franchise in 1931, it didn’t become a separate and publically traded company until 1993.
   Allstate insurance plans are especially preferred by safe, law-abiding drivers. Allstate was the first car insurance company to provide accident forgiveness to drivers with historically clean driving records. Over time, all Allstate drivers can get lower rates by staying accident-free. The company also features a discount program for families insuring teen drivers.
3. GEICO Auto Insurance Company– GEICO and Progressive vie for the position of third most popular auto insurance company in terms of policies written. GEICO currently holds about eight percent of the market share. The company’s acronym stands for Government Employees Insurance Company and the firm is also known as Berkshire Hathaway, Inc. Although it has always been a private company, GEICO initially focused on selling insurance policies to military members and other government employees. Today, GEICO is known for extending bargains to the wider population. However, their car insurance policies typically include some limitations.
   Saving money with GEICO involves forgoing a few perks. For one, GEICO agents aren’t available in every metropolitan area. Also, GEICO car insurance usually does not cover rental cars, so you will need to purchase from the rental car company. Lastly, your policy will only insure the drivers you have listed on your policy.
4. Progressive Corporation Auto Insurance Company – Progressive Corporation holds about seven percent of the US market share. Since its founding in 1937, the company has been known for paying claims especially quickly. High customer satisfaction and affordability combined. While Progressive and GEICO go neck-and-neck for business, Progressive customers usually get the most flexibility with their policies. Progressive policies usually cover rental cars and insure cars even when they are not driven by the policyholders themselves.
5. Nationwide Mutual Auto Insurance Company – Nationwide Mutual was founded in 1925 and currently serves about five percent of the car insurance market. Nationwide supplies car insurance for individuals, but the company is especially popular for its affordable business vehicle insurance plans. If you are aiming to insure a full fleet of cars, be sure to learn about the options Nationwide provides.
6. Liberty Mutual Group Auto Insurance Company – Liberty Mutual dates back to 1912. It was founded in Massachusetts when that state began requiring workers compensation insurance. Today, Liberty is America’s third largest provider of insurance in the US and owns insurance companies around the world. However, its market share for vehicle insurance is less than two percent. Liberty focuses mainly on other products such as property insurance and surety loans.
   Liberty Mutual is preferred by customers who like automation. While Liberty lets its customers work with agents, they can also conduct all their insurance business online.
7. USAA Insurance – USAA, or United Services Automobile Association, was originally called the United States Army Automobile Association. It was founded by military members in 1922 because, as members of a group deemed high-risk, they had trouble securing car insurance. Today, USAA is available to all members of the US Armed Forces and their immediate family members. The company consistently earns top honors for customer service.
8. Travelers Auto Insurance Company – Travelers is a small yet well-established and innovative insurance company. Travelers, which is also known as Zurich Insurance Group, was founded in 1864 and has been writing car insurance policies since 1897.
   While Travelers only holds about two percent of the car insurance market in the US, it has had a noticeable influence on industry practices. Travelers was the first car insurance company that required its agents to be trained and licensed. It was also the first company to offer a hotline for claims.
9. AAA Auto Insurance Company – The American Automobile Association or AAA was founded in Chicago in 1902 with 1,000 members. Since then, AAA’s membership list has climbed to more than 52 million. Most members use AAA’s roadside emergency services. Additionally, AAA serves about one percent of the auto insurance market. Be sure to check with AAA, as this company offers a wide range of car insurance discounts and perks.
10. American Family Mutual – American Family Mutual was founded in 1927 as a service for Wisconsin farmers. The company realized farmers were less risky drivers, and quickly gained ground in the rural Midwest and then expanded to metropolitan areas. American Family now provides auto insurance in 19 states and has been named a Distinguished Insurance Agency by J.D. Power and Associates for its outstanding customer service. Trained agents are available by phone 24 hours/day.

Other Options for Car Insurance

All of the car insurance companies listed above are highly recommended within the insurance industry. However, there are dozens of smaller companies that might also meet your needs. that is not well known nationally. A good example of this is PEMCO. They do not have a strong presence nationally, but they are really popular in Washington State.

You can also acquire a list of licensed insurance companies in your state by visiting your state’s Department of Insurance. The Department of Insurance maintains records of legitimate complaints levied against companies.

Get the Best Car Insurance Quotes Right Here:

Ready to get free quote comparisons? Enter your zip code to find great auto insurance quotes within minutes. Shop around to find the best-priced premium for your car insurance needs.

Natasha Carr is a contributing writer at Kanetix.com.


Disclaimer - The above description/explanation is intended as a guideline only, and is not to be interpreted as a recommendation to buy or sell any insurance products, or to provide legal or financial advice of any kind. Also, Kanetix Ltd. does not warrant or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed.

Our articles cannot be reproduced or republished in any way or form without written consent from Kanetix Ltd. - Click here to ask for permission. You may use our RSS feed with an active link to our site. Click here to get our RSS feed.

© 2011 KTX Insurance Agency Ltd. All rights reserved.