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CNBC
12-05-2025
- Automotive
- CNBC
The 10 largest car insurance companies in the U.S.
The National Association of Insurance Commissioners' 2025 report on the largest car insurance companies in the U.S. reveals the industry is continuing to consolidate: The top five insurers held a cumulative market share of 63.59% in 2024, up from 62.49% in 2023. The top two providers, State Farm and Progressive, account for more than 35% of the market by themselves. Liberty Mutual tumbled from the sixth to seventh place, with direct written premiums dropping from over $13 billion in 2023 to $11.7 billion in 2024. Nationwide, meanwhile, fell out of the top 10 entirely, slipping from No. 10 to No. 13. The report also reinforces how car insurance rates continue to outpace the cost of living: While inflation increased 3% between 2023 and 2024, direct written premiums shot up more than 13%. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent auto coverage is available in all 50 states and the District of Columbia. It offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown offers an array of riders, including rental car reimbursement, rideshare insurance and a Deductible Savings Bank that deducts $50 from your deductible each policy period you go without a claim. The best way to estimate your costs is to request a quote Yes State Farm is one of the largest auto insurers in the U.S. based on market share. It has an excellent reputation for customer satisfaction and offers discounts for safe driving and young drivers. Terms apply. Read our State Farm Auto Insurance review The largest private passenger insurer in the U.S. since the 1940s, State Farm had nearly $68 billion in direct written premiums in 2024, up from about $58 billion in 2023. Its market share also increased, from 16.84% to 18.87%. The best way to estimate your costs is to request a quote Yes Progressive offers a number of lines of insurance to allow for bundling, and convenient tools to help you keep your coverage in your budget. Terms apply. Read our Progressive Auto Insurance review. Holding onto the No. 2 spot, Progressive reported more than $60 billion in direct written premiums last year, with a market share of 16.73%. The best way to estimate your costs is to request a quote Yes Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance. Terms apply. Read our Geico Auto Insurance review. A wholly owned subsidiary of Berkshire Hathaway, Geico kept the No. 3 slot this year, although its share of the market dipped from 12.3% to 11.63%. The Chevy Chase, Maryland-based company reported nearly $41.8 billion in direct written premiums in 2024. The best way to estimate your costs is to request a quote Yes Allstate offers auto insurance customers a total of 14 discounts in addition to a pay-per-mile car insurance program. It offers quotes by phone, through an agent, or online. The company also offers a number of other insurance products to bundle your coverage and save. Allstate's market share remained fairly static at 10.19%, while direct written premiums increased to $36.58 billion in 2024 from $32.85 billion in 2023. The best way to estimate your costs is to request a quote Yes USAA's auto insurance is limited to service members, veterans and their families but it is available in all 50 states and Washington D.C. In addition to low rates and outstanding customer service, it has coverage options for unique circumstances, such as active deployment. Terms apply. While only available to active duty service members, veterans and their families, USAA still nabbed the No. 5 spot and 6.17% of the auto insurance market. It reported $22.13 billion in written premiums in 2024. The best way to estimate your costs is to request a quote Yes Farmers Insurance offers 23 discounts for auto insurance and issues policies in every state except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, West Virginia and Washington, D.C. Terms apply. Read our review of Farmers car insurance Farmers Insurance rose from seventh to sixth place and reported close to $13.5 billion in written premiums in 2024. Its market share declined, however, from 4.18% to 3.76%. The best way to estimate your costs is to request a quote Yes Liberty Mutual offers auto insurance policies that are available nationwide and customizable to fit your wants and needs. It also has several discounts to help drivers save, including a discount for bundling home and auto insurance, as well as discounts for students and military members. Liberty Mutual fell from sixth to seventh place, with its market share declining from 4.20% in 2023 to 3.27% in 2024. The Boston-based company reported $11.74 billion in direct written premiums last year, down from $13.31 billion the year before. The best way to estimate your costs is to request a quote Yes Travelers auto insurance policies are affordable and backed by the sixth largest company for car insurance by market share according to the NAIC. The company also offers a number of discounts to customers, including discounts for bundling, owning a hybrid or electric car, and good student discounts. Travelers moved up from ninth to eighth place in 2025, although its market declined from 2.08% to 2.00%. It reported $7.18 billion in direct written premiums last year, up from $6.58 billion in 2023. The best way to estimate your costs is to request a quote The American Automobile Association (AAA) is a nationwide network of motor clubs offering car insurance underwritten by third parties, so coverage options and customer service may vary by state. Membership in AAA provides access to benefits like roadside assistance, identity theft protection and discounts on travel, dining and shopping. AAA provides a variety of services to members across the U.S., including auto insurance through third-party underwriters like the Automobile Club of Southern California and the Automobile Club Group. It broke into the top 10 for the first time this year, reporting $6.47 billion in written premiums in 2024, up from $4.83 billion in 2023. AAA's market share increased slightly, as well, from 1.53% to 1.80%. The best way to estimate your costs is to request a quote American Family offers affordable car insurance with more than a dozen discounts to further lower your premium. While its not available nationwide, American Family offers quotes online or through an agent, depending on your preference. Yes American Family Insurance dropped from eighth to tenth place in 2025, reporting $6.17 billion in written premiums and a 1.72% market share. Shop around: There can be huge differences among insurance companies for the same basic policy. Get rate quotes from at least three providers every time you're up for renewal to ensure you're getting the best deal. Pay your whole premium upfront: Most companies charge a fee for dividing your premium into monthly payments. You can often receive a discount for setting up autopay, as well. Bundle home and auto insurance: Getting multiple lines of insurance from the same carrier doesn't just simplify your life, it can result in discounts of up to 25%.Take advantage of other discounts: Rate reductions are often available to safe drivers, good students, homeowners, members of the military and others. The nation's largest car insurance company, State Farm has a discount of up to 30% if you use its Drive Safe & Save mobile app to track your pay-per-mile insurance: If you don't drive often, a pay-per-mile policy can save you more than 40% over traditional insurance. You're charged a daily flat rate plus a few cents per your credit score: In most states, insurance companies can use your credit history when calculating your rates. Paying off debts, lowering your credit utilization ratio and reporting errors or fraud are all ways to boost your FICO score. Select a higher deductible: Raising your deductible from $200 to $500 can reduce the cost of collision and comprehensive coverage by as much as 30%, according to the Insurance Information Institute, while upping it to $1,000 can save you 40% or more. Just make sure you have adequate savings to cover the difference. State Farm is the largest car insurance company in the U.S., with nearly $68 billion in direct premiums written in 2024 and a 18.87% market share. Progressive is the second largest, followed by Geico in third place. Most car insurance is paid on a monthly, biannual or annual basis. Typically, if you cancel a policy you've already paid for, you'll get a prorated refund. There may be a cancellation fee, however. The amount you'll pay for car insurance varies greatly depending on where you live, your age, your driving record and many other factors. The nationwide average for full coverage car insurance in April 2025 was $2,685 a year. For a liability-only policy, it was $800 a year. Your car insurance deductible is the amount you're responsible for paying for repairs or replacement of your vehicle before your insurer contributes anything. Drivers can select their deductible when buying a policy and, typically, a higher deductible means lower premiums. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance article is based on rigorous reporting by our team of expert writers and editors. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.
CNBC
29-04-2025
- Automotive
- CNBC
Ask yourself these 6 questions to see how much car insurance you need
Every driver needs car insurance, but not everyone needs the same type or amount of coverage. The policy that's right for you depends on many factors, including the age of your car, how you paid for it, and where you live. Take CNBC Select's six-question quiz to see how much car insurance you really need. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent auto coverage is available in all 50 states and the District of Columbia. It offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown offers an array of riders, including rental car reimbursement, rideshare insurance and a Deductible Savings Bank that deducts $50 from your deductible each policy period you go without a claim. All U.S. states except New Hampshire require drivers to have some level of liability car insurance to pay for damage or injuries to others. The amount of bodily injury and property liability coverage, however, is different from state to state. The 12 states with no-fault insurance laws also require drivers to get personal injury protection (PIP) or medical payment (MedPay), which cover medical expenses for you or your passengers after an accident, regardless of who is found to be at fault. Twenty-two states and Washington, D.C., require drivers to have uninsured/underinsured motorist (UM/UIM) coverage, which protects you financially if you're in a collision with someone who doesn't have enough insurance or no insurance at all. Collision coverage pays to repair or replace your car if it hits another car or object, regardless of who is at fault. Comprehensive coverage covers non-collision events, like theft, vandalism, hail, failing tree branches and fire. While comprehensive and collision coverage aren't mandated by law, most lenders require borrowers to have them if they're still making payments on a loan or lease. If your car is totaled or stolen, a standard insurance policy will only reimburse you for the actual cash value of the vehicle, which takes depreciation into account. (New cars can lose as much as 20% of their value in their first year.) If you're still paying off your car, especially if you made a small down payment, gap insurance can cover the difference between the vehicle's value and the amount you still owe on it. According to the Insurance Information Institute, gap insurance is a good idea if you: Adding gap insurance only increases full coverage premiums by about $20 to $60 a year, according to the III. Your dealership may offer gap insurance, but it's usually cheaper through an insurance company. Travelers is known for its affordable rates and offers discounts if your car is no more than three model years old. The best way to estimate your costs is to request a quote Yes Travelers auto insurance policies are affordable and backed by the sixth largest company for car insurance by market share according to the NAIC. The company also offers a number of discounts to customers, including discounts for bundling, owning a hybrid or electric car, and good student discounts. Nationwide allows drivers to purchase gap coverage on cars that are up to six years old. The best way to estimate your costs is to request a quote Yes Nationwide offers near-nationwide availability and personalized services, such as On Your Side® Review, a free annual insurance evaluation to ensure you are adequately protected and are taking advantage of any discounts available to you. Terms apply. If you're leasing, check your lease agreement before adding gap insurance: It may already be included in the lease price. If you own your car outright, you don't need gap insurance. Full coverage is a good idea for most car owners and is usually required if you have a loan or lease. But if you own your car outright and it's only worth a few thousand dollars, a full coverage policy might be overkill. The rule of thumb is to drop collision and comprehensive coverage if your car is worth less than 10 times your annual premiums. If, for example, you have a car worth $5,000 and your comprehensive and collision coverage costs more than $500 for the year, it may not be worth keeping comprehensive and collision coverage. You can check the value of your car with Kelley Blue Book, the industry standard for pricing. Your net worth is the sum of all of your assets minus all your debts. Determining this amount will give you a good indicator of how much liability coverage you need. The minimum insurance requirement in many states may not be enough to cover all the expenses you could accrue after an accident: In Connecticut, for example, drivers need $25,000 in bodily injury liability per person and $50,000 total per accident, as well as $25,000 property damage per accident. Let's say you're held liable for a crash that seriously injures four people and totals their $50,000 SUV. If their medical expenses are $20,000 per person, you've already exceeded your $50,000 per accident limit for bodily injury liability by $30,000 and your property damage limit by $25,000. You could be sued for the balance, as well as pain and suffering, and would have to pay for it out of pocket. Depending on where you live, that could involve emptying your bank account, liquidating your investments and even selling your car or house. But having adequate liability coverage protects your assets. If your net worth is higher than the limits your car insurance company offers, umbrella insurance can cover you for liability claims up to millions of dollars. One of our top picks for umbrella insurance is American Family Insurance, which has coverage of up to $5 million. The best way to estimate your costs is to request a quote Undisclosed Yes American Family has a wide variety of umbrella policies available, including personal coverage, commercial coverage and coverage for ranches and farms. It's also highly rated for auto and home insurance. In some cases, insurers may try to upsell you on coverage you don't need, like roadside assistance or protection for mechanical breakdowns. Many credit cards offer roadside assistance, including the Chase Sapphire Reserve® (see rates and fees), Chase Freedom Unlimited® (see rates and fees) and Capital One Platinum Secured Credit Card. On Chase's site On Chase's site New cardholders receive a 0% intro APR for 15 months from account opening on purchases and balance transfers. Good to Excellent670–850 18.99% - 28.49% variable $0 Earn $250 cash back See rates and fees. Terms apply. Member FDIC. Read our Chase Freedom Unlimited® review. The Chase Freedom Unlimited® is a no-annual-fee card that earns generous cash-back on everyday purchases and a lucrative welcome fee of either $5 or 3% of the amount of each transfer, whichever is greater, in the first 60 days. After that, either $5 or 5% of the amount of each transfer, whichever is greater. 3% of each transaction in U.S. dollars If your card does, buying it from your insurer is redundant. (If you have AAA or belong to another motor club, you also probably already have access to roadside assistance.) Mechanical breakdown insurance (MBI) acts like an extended warranty, paying for unexpected engine issues, transmission failures and faulty electrical systems. An MBI add-on to a full coverage policy averages between $30 and $100 a year. These policies have strict requirements regarding the age, mileage and condition of covered vehicles. They don't generally cover routine maintenance, normal wear-and-tear or cosmetic repairs. And if your car is still under warranty, it covers much of the same territory. This number breaks down the amount of bodily injury coverage a policy has per person, per accident and the amount of property damage it covers per accident. A 100/300/100 covers up to $100,000 of bodily injury coverage per person at up to $300,000 per accident, and up to $100,000 of property damage per accident. A good liability limit for car insurance is one that meets your net worth, which is the sum of all of your assets minus any debts you owe. Full coverage car insurance is a package that includes liability, comprehensive and collision car insurance. While it is more expensive than just getting liability coverage on its own, getting all three coverages is often required by loans and lease terms. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
