What are the largest auto insurance companies in the US in 2019? With 8,701 businesses, the US auto insurance industry is one of the biggest in the world. According to IBIS World, the total revenue raked in by the industry in 2019 is approximately $285 billion. Further, IBIS World data shows that between 2014 and 2019, the annual growth of the US auto insurance industry is 3.3%. I wonder when Amazon is going to start offering automobile insurance policies to its Prime members and try to grab a piece of this huge pie.
In the five years leading to December 2018, most insurers within the US auto insurance industry emphasized on growing their net premiums as well as their financial position. Resultantly, the industry witnessed an increased rate of growth in that period. In addition, the US economy has been on a positive trajectory in the five years leading to 2018. As such, the higher investment and disposable income in the hands of Americans saw auto insurers record higher levels of income.
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The auto insurance industry is critical to the economy of the US. For starters, individuals and businesses in the US cannot legally operate automobiles without insurance. Insurers in the auto insurance industry, therefore, take up the critical role of ensuring that the individuals and businesses have the insurance. While at that, operators earn revenue from the premiums they underwrite. Oftentimes, the operators invest some of the revenue in a range of financial instruments to generate more income.
Clearly, insurance operators in the auto insurance industry rely on underwritten premiums as their main source of revenue. Every financial year, operators collect different amounts of direct premiums written. In this article, we rank the top eleven largest auto insurance companies in the US in 2019. Our methodology was the market share of the companies according to the most recent financial information available in the public domain. In addition, we relied on other sources like S&P Global Market Intelligence and ValuePenguin to compute the market share of the companies. Here is our list of the largest auto insurance companies in US in 2019:
Auto Club Exchange
ValuePenguin puts the market share of Auto Club Exchange at just 1.02%. Auto Club Exchange Group is part of the Interinsurance Exchange of the Automobile Club. The operator provides private insurance for automobile owners. Based in Missouri, the insurer claims a huge market in California where its market share was 8.5% in 2017. S&P Global Market Intelligence data shows that the insurer has close to 1.3 million policyholders in California alone.
- American Family Insurance Group
Established in 1927, the insurance operator originally focused on providing cover to farmers’ automobiles in Wisconsin. The company expanded in scope in the 1930s, and it is now one of the largest auto insurance companies in the US in 2019. According to S&P Global Market Intelligence data, the company claims 2% of the American auto insurance market.
- Travelers Companies Inc. (NYSE:TRV)
Travelers operate internationally, where it has more 13,500 agents. The largest markets for the company are the Americas, Ireland, and the United Kingdom. Similar to American Family Insurance, the insurer takes up 2% of the US auto insurance market share. S&P Global Market Intelligence data shows that the company collected about $1.3 billion in direct premiums written in Q1 2019.
- Nationwide Mutual Group
Nationwide Mutual Group started operations in 1925. However, the company has grown from a small auto insurance operator focused on Ohio farmers to one of the largest auto insurance companies in the US. Presently, the company offers a comprehensive list of products, including life and accident insurance in addition to auto insurance. The company claims 2.74% of the US auto insurance market share. Company records show that Nationwide had collected a little over $7 million in direct premiums written as at January 2019.
- Farmers Insurance Group of Companies
Farmers is one of the largest auto insurance companies in the US that boast excellent rating by policyholders. Initially, the company focused its products on rural truck drivers and farmers. Since Zurich Insurance Group acquired a controlling stake of the company, it offers a wider range of products include home and business insurance. Farmers’ market share is 4.27%.
- Liberty Mutual
Liberty Mutual has been in operation for more than 100 years. Besides the US market, the company has a presence in 30 countries across the globe. The company has excellent ratings due to its unique auto insurance policies. In Q1 2019, Liberty Mutual recorded $3.07 billion in direct premiums written. The insurer claims 4.79% of the US auto insurance industry.
The United States Automobile Association (USAA) is one of the largest auto insurance companies in the US. Particularly, USAA is among the few insurers whose rating is A++ exceptional. The company provides cover to a wide range of policyholders in addition to automobile owners. Based in San Antonio, Texas, USAA recorded direct premiums written of $3.91 billion in Q1 2019 and has a market share of 5.88%.
- Allstate Corporation (NYSE:ALL)
Allstate Corp. is an auto insurance operator with the A+ superior rating. The company operates in multiple insurance markets through subsidiaries. Allstate sells insurance policies to businesses, homes, automobile owners, and inland-marine players. With a market share of 9.22%, the company earned approximately $5.78 billion direct premiums written in Q1 2019.
- Progressive Corporation (NYSE:PGR)
Progressive caters to drivers who are mostly high risk. Besides automotive insurance, Progressive sells commercial vehicle insurance, motorcycle, and recreational vehicles. Customers can access the company’s services online or via a phone call to its agents. The company reported approximately $7.74 billion direct premiums written in Q1 2019. Progressive holds an 11.00% market share of the US auto insurance market.
GEICO is not only one of the largest auto insurance companies in the US but also the best rated with an A++ exceptional rating. The company claims a market share of 13.45%. In Q1 2019, GEICO recorded $9.02 billion direct premiums written. So far, in 2019, the direct premiums written for the company is $29.6 billion. It is owned by billionaire Warren Buffett's Berkshire Hathaway (NYSE:BRK-B)
- State Farm Mutual Automobile Insurance
State Farm takes the top spot as the largest auto insurance operator in the US. The company began operations in 1922 where its policies targeted farmers exclusively. Presently, the company provides casualty as well as property insurance across the US. The Insurance Information Institute ranked State Farm as the best writer of property/casualty insurance. The ranking was based on the company’s direct premiums written. State Farm continues to lead in 2019 with a market share of 17.06% and direct premiums written of $10.54 billion in Q1 2019.
Disclosure: None. Largest auto insurance companies in the US in 2019 is originally published at Insider Monkey.