According to the NAIC, the 10 largest auto insurance companies are:
- State Farm
- Geico
- Progressive
- Allstate
- USAA
- Liberty Mutual
- Farmers
- Nationwide
- American Family Insurance
- Travelers
These 10 companies accounted for over 76% of all car insurance premiums written in the country in 2021. We’ve reviewed and rated all of these major insurance providers, and we’ll now take a closer look at each one in order of size.
#1 State Farm
Headquarters: Bloomington, Ill.
Better Business Bureau (BBB) rating: A+
AM Best financial strength rating: A++
Average annual cost: $1,481
State Farm tops the list of car insurance companies as the largest provider in the nation. It combines a strong reputation with good customer service and reasonable car insurance rates. Our estimates show State Farm’s average rates for full coverage are about 14% cheaper than the national average.
State Farm scored 4.2 out of 5.0 for customer satisfaction in our insurance survey. Our survey polled nearly 7,000 people on their experiences with car insurance companies, and about 19% of the participants had State Farm.
#2 Geico
Headquarters: Chevy Chase, Md.
BBB rating: A+
AM Best financial strength rating: A++
Average annual cost: $1,308
Geico began by selling insurance to government employees, but it offers coverage to everyone today. You can get all the standard coverage options from Geico, as well as extras like mechanical breakdown insurance, which covers certain repairs. Our cost data shows Geico’s average rates for full-coverage insurance are about 24% cheaper than the industry average. The company also scored 4.1 for customer satisfaction in our survey.
#3 Progressive
Headquarters: Mayfield, Ohio
BBB rating: F
AM Best financial strength rating: A+
Average annual cost: $1,611
Progressive is the third-largest provider on our list of car insurance companies. It offers a wide range of insurance options along with Snapshot®, a usage-based program for helping good drivers save money. Our rate averages show drivers with a DUI pay about 29% less for full coverage with Progressive than with other companies, which makes Progressive a good option for high-risk drivers.
Our review team reached out to Progressive for a comment on its BBB rating but did not receive a response.
#4 Allstate
Headquarters: Northbrook, Ill.
BBB rating: A-
AM Best financial strength rating: A+
Average annual cost: $2,088
Since its founding in 1931, Allstate has grown to become the fourth-largest car insurance company in the country. The provider is known for its service through local agents. Our rate averages show other companies may be cheaper on average, but since individual rates vary, it’s best to compare car insurance quotes from multiple companies. Allstate offers both usage-based and pay-per-mile insurance programs that can help drivers save money.
#5 USAA
Headquarters: San Antonio
BBB rating: A-
AM Best financial strength rating: A++
Average annual cost: $1,054
USAA offers low prices and good customer service, but it’s only available to members of the military, veterans and children of military members or veterans. We recommend getting a quote from USAA if you qualify.
The company scored higher than any other provider in the J.D. Power 2021 U.S. Auto Claims Satisfaction Study℠ and scored 4.3 out of 5.0 for customer satisfaction in our consumer survey. And according to our rate averages, full-coverage car insurance policies from USAA typically cost about 39% less than the national average.
#6 Liberty Mutual
Headquarters: Boston
BBB rating: A+ with accreditation
AM Best financial strength rating: A
Liberty Mutual stands out from competitors for a couple of reasons. One reason is that it offers multiple ways for young drivers to save money. This includes good student and student-away-at-school discounts, plus the usage-based RightTrack® program. RightTrack can award up to 30% off to people who practice safe driving. Also, Liberty Mutual offers a few extra auto insurance coverage options that can be helpful:
- New car replacement
- Better car replacement
- Original parts replacement
- Teachers’ auto insurance
#7 Farmers
Headquarters: Los Angeles
BBB rating: A with accreditation
AM Best financial strength rating: A
Average annual cost: $2,140
Farmers is next on our list of car insurance companies. The provider has been in business since 1928 and offers a broad selection of auto insurance products today. Some of its car insurance coverage options, like the ones below, are particularly useful for classic car owners:
- Guaranteed Value™
- Customized equipment
- Spare parts coverage
Spare parts coverage can replace up to $750 of auto parts you have in your garage. Farmers also offers original equipment manufacturer (OEM) coverage, which pays for factory-original parts in repairs. In our consumer survey, Farmers scored 4.0 out of 5.0 for customer satisfaction.
#8 Nationwide
Headquarters: Columbus, Ohio
BBB rating: A+ with accreditation
AM Best financial strength rating: A+
Average annual cost: $1,281
Nationwide is one of the most recognizable car insurance companies in the United States. The company offers all the standard coverage options and some extras. Our team found Nationwide to be an affordable provider for many drivers.
According to our estimates, its average full-coverage rates for good drivers are 26% cheaper than the market average. Nationwide is also one of the more affordable companies for drivers with speeding tickets or stop-sign violations on their records.
#9 American Family Insurance
Headquarters: Madison, Wis.
BBB rating: A
AM Best financial strength rating: A
Average annual cost: $1,537
American Family Insurance is another affordable choice for car insurance, but it operates in less than half of the U.S. That said, policyholders tend to have positive experiences with the company. In our consumer survey, American Family scored 4.5 out of 5.0 for customer experience, which was the highest score of any company.
According to our rate averages, full coverage from American Family tends to be about 11% cheaper than the national average.
#10 Travelers
Headquarters: New York
BBB rating: A
AM Best financial strength rating: A++
Average annual cost: $1,669
Travelers rounds out our list of car insurance companies as the 10th-largest provider. In our consumer survey, Travelers scored a respectable 4.2 out of 5.0 for customer satisfaction. Also its average full-coverage rates are about 4% below the national average, according to our rate data.
Travelers sets itself apart from other insurers with the coverage upgrades it offers. These include:
Travelers also offers named non-owner car insurance. This covers you if you don’t own a car but frequently drive other people’s cars.
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