You have a car. Now it’s time to get covered. Ten major auto insurance companies dominate the auto insurance market in the United States. Finding the best insurance policy can seem like a daunting task, especially with the big auto insurance companies.
In the United States, the top ten auto insurance companies have a 72% share of the auto insurance market. Some auto insurance companies are known as “stock insurance companies,” which means they offer voting rights to their shareholders. Other insurance companies are “mutuals”, meaning they are owned by their policyholders.
It is important to compare auto insurance policies before you buy. Ask your insurance broker how to get the coverage that is best for you and know who is covering you.
1. State Farm
State Farm is the largest auto insurance company in the United States, accounting for 18% of the total auto insurance market share in the United States. Founded in 1922, State Farm operates as a mutual insurance company.
It offers property and casualty insurance, life and health insurance, annuities, mutual funds, and banking products. About 25 percent of all cars in the country are insured by State Farm.
State Farm ranks No. 36 on the Fortune 500 list of largest companies and has more than 58,000 employees. The company has 83.4 million insurance policies, including 44.1 million in auto insurance, 28 million in fire insurance, and 8 million in life insurance. State Farm also ranks first in J.D. Power’s overall satisfaction rating.
With its large number of policy options, State Farm is a good choice for drivers who need insurance on multiple lines. Policyholders can work with local insurance agents or purchase insurance online.
However, drivers looking for more competitive rates may want to look elsewhere. State Farm’s auto insurance premiums are more expensive than the national average, with no discounts for accident forgiveness or automatic payments.
In May 2017, State Farm faced a lawsuit from the California Insurance Commissioner for overcharging about 250,000 customer accounts.