Who are the major car insurance companies?
Most of the major car insurance companies appear on the Fortune 500 list, but appearance on the Fortune 500 alone is sufficient only for identifying large companies. It is not useful for ranking car insurance companies in the order of the degree to which they are major car insurers.
Auto-Owners car insurance is number 425 on the Fortune 500, but it operates in only 26 states and does not make a list of the top ten auto insurance companies, in spite of earning revenues greater than some of the more widely known car insurance companies that operate in all states. Enter your ZIP code in our car insurance comparison tool to get auto insurance quotes.
For these reasons, the car insurance companies identified here as the major companies serving the broader national market are identified and ranked according to market share. That approach puts the national leader, State Farm, at the top of the list instead of 30 places below GEICO on the Fortune 500.
Market Share
Market share is the measure of how much of the total market a single company holds. In 2010, State Farm’s national market share was 18.7 %, meaning that it writes 18.7 % of all of the car insurance policies written across the entire country. Ranking companies by market share places the leader, State Farm, at the top of the list rather than at the 37th place it occupies on the Fortune 500. The top ten car insurance companies in terms of market share wrote 68.2 % of all of the car insurance policies written across the country.
The Major Companies
- State Farm, 18.7 %
- Allstate, 10.2 %
- GEICO, 8.5 %
- Progressive, 7.7 %
- Farmers, 6.0 %
- Liberty Mutual, 4.5 %
- USAA, 4.4 %
- Nationwide, 4.2 %
- Travelers, 2.1 %
- American Family, 1.9 %
1. State Farm Insurance
This company is the leader in the US market. With 8.5 % of the total market between State Farm and the second – place car insurance company, it seems that State Farm’s leadership position is assured, at least for the next few years. Revenues increased from $570 million in 2009 to $951 million in 2010. These are just some of the benefits of choosing State Farm auto insurance policy. We also have a more detailed State Farm car insurance review.
2. Allstate
In second place with a 10.2 % share of the market, Allstate is much larger than State Farm in terms of total revenue. Its revenues in 2009 were $32 billion, which declined in 2010 to $31.4 billion. The difference in revenues between the top two companies reflects the numbers of kinds of policies they sell, and does not reflect any price differences in car insurance prices. Check out the Allstate car insurance discounts available to customers.
3. GEICO
The third largest car insurance company in terms of market share, GEICO has been a part of Warren Buffet’s Berkshire Hathaway company for several years. It is an old company, however, and was founded in 1936. Its revenues increased from $649 million in 2009 to $1.1 billion in 2010. Check out the GEICO car insurance coverage options.
4. Progressive
This company was founded in 1937. Progressive’s revenues increased from $14.6 billion in 2009 to $15 billion in 2010. Much of that increase may be attributable in part to Progressive’s extensive advertising. If you want more information on this company look into our Progressive car insurance review.
5. Farmers
Founded in 1928, Farmers Insurance Group also is an old company. Farmers increased its total revenues from $1.6 billion in 2009 to $1.7 billion in 2010. See our Farmers car insurance review for more detailed information.
6. Liberty Mutual
One of the oldest of today’s leading car insurance companies, Liberty Mutual was founded in 1912 and will be celebrating its centennial this year. It collected revenues of $1 billion in 2009, but increased total revenues to $1.7 billion in 2010. Learn more about this company and read the list Liberty Mutual car insurance discounts.
7. USAA
USAA is one of the few car insurance market share leaders that lost money from 2009 to 2010. Its revenues in 2009 totaled $3 billion, but declined by 2010 to $2.6 billion. See the USAA car insurance discounts they offer.
8. Nationwide
Nationwide is one of the smaller car insurance companies in terms of revenue, even though it too is an old company that was founded in 1926. Nationwide also has been advertising extensively over the past couple of years, which may be at least partially responsible for it revenues increase from $716 million in 2009 to $959 million in 2010. See Nationwide car insurance coverage options.
9. Travelers
The Travelers Insurance Company that exists today is one that was founded in 1853, but it does contain that original company and so is the oldest of all of the leading car insurance companies. Its revenues declined from 2009 to 2010, however, from $3.6 billion to $3.3 billion. We have more detailed information on this company in our Travelers car insurance review page.
10. American Family
American Family Insurance, founded in 1927, also declined in revenues from 2009 to 2010. It also lost 0.1 % of its market share in the same period. Its 2009 revenues of $6.4 million declined by 2010 to $6.3 million. See the list of American Family discounts.
Choosing a Company
The preceding ten car insurance companies qualify under all definitions of major companies. Each car insurance company has its own personality and pursues different types of drivers. Every driver should compare quotes from several companies to find the lowest price for what fits with his own situation. Enter your ZIP code into our FREE comparison tool now!
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