10 Largest Auto Insurance Companies (July 2021)

10 Largest Auto Insurance Companies (July 2021)

The U.S. car insurance market is dominated by a few key players, with the 10 largest companies controlling approximately 72% of the market.

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While these carriers underwrite a large number of policies, they differ on price, service quality and many other characteristics. To help you choose the best insurance company for your situation, we created a list of the 10 largest auto insurance companies in the U.S. and discussed what makes each of them unique.


What are the largest auto insurance companies?

When looking at the rankings of the top auto insurance companies in the United States, most of the names are recognizable due to their national television advertising campaigns.

The number one auto insurance company in the country in terms of market share and premiums written is State Farm, followed by Geico, Progressive and Allstate.

Market Share of the Largest Auto Insurance Companies.

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Yet the 10 largest insurance companies offer varied insurance rates, customer claims experiences and features. For shoppers looking for cheap rates, we always recommend comparing quotes from multiple insurers to find the best price.

Below we list the top 10 biggest insurers in the U.S. and provide more detail regarding what you should know about each of them. Click on any of the links in the table below to learn more about a particular insurer.

Rank
Auto insurance company
Premiums written ($bn)
Market share
1State Farm$41.116%
2Geico$35.213%
3Progressive$32.312%
4Allstate$23.89%
5USAA$15.26%
6Liberty Mutual$12.15%
7Farmers$10.74%
8Nationwide$6.63%
9American Family$5.82%
10Travelers$5.52%

1. State Farm

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State Farm is a great auto insurance company for anyone who wants a local agent, a personalized experience and cheaper-than-average rates.

  • Average six-month premium: $307
  • Market share: 16%
  • Premiums written: $41.1 bn
  • ValuePenguin rating: 4/5
  • J.D. Power customer satisfaction score: 881
  • Read our full State Farm review

State Farm is the largest auto insurance company in the U.S. and possesses 16% of the total available market share. Over 15% of dollars spent on private passenger auto premiums in the U.S. is paid to State Farm.

The company currently employs approximately 60,000 employees and has nearly 19,000 agents. State Farm operates as a mutual insurance company, meaning that it's owned by its policyholders.

Among the largest widely available car insurers in this list, State Farm offered the cheapest car insurance rates in most parts of the U.S.

LEARN MORE: Cheapest Car Insurance Companies

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State Farm\u003C\/h2\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad-none align-left clearfix\"\u003E\n\u003Cdiv class=\"third pad align-left clearfix\"\u003E\n\u003Cdiv class=\"ReactComponent--root\"\u003E\n \u003Cdiv class=\"js-react-component-rendered js-react-component-AffiliateBanner\" data-component-name=\"AffiliateBanner\"\u003E\n \u003Cdiv class=\"AffiliateTileBanner--root AffiliateTileBanner--align-center \"\u003E\u003Cdiv class=\"AffiliateTileBanner--inner\"\u003E\u003Cdiv class=\"AffiliateTileBanner--wrapper\"\u003E\u003Cdiv class=\"AffiliateTileBanner--image\"\u003E\u003Ca class=\"Link--root AffiliateTileBanner--image-link \" href=\"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.statefarm.com\/insurance\/auto&carrier=State%20Farm;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\" rel=\"nofollow\" target=\"_blank\" title=\"State Farm\"\u003E\u003Cimg alt=\"State Farm\" class=\"Image--root lazyload\" data-src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/statefarm-2\" data-srcset=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/statefarm-2 1x, \/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/referral_logos\/us\/insurance\/statefarm-2 2x\" src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/e_blur:1000,q_1,f_auto\/referral_logos\/us\/insurance\/statefarm-2\"\/\u003E\u003C\/a\u003E\u003C\/div\u003E\u003Cdiv class=\"AffiliateTileBanner--button\"\u003E\u003Cdiv class=\"AffiliateButtonV2--root \"\u003E\u003Ca class=\"Link--root Button--root Button--primary Button--fluid Button--square \" href=\"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.statefarm.com\/insurance\/auto&carrier=State%20Farm;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\" rel=\"nofollow\" target=\"_blank\" title=\"Get a Quote\"\u003EGet a Quote\u003Cspan aria-hidden=\"true\" class=\"StyledIcon-sc-e7wugl dBUYFD ValuePenguinIcon--root ValuePenguinIcon--lock\" color=\"inherit\" name=\"lock\"\u003E\u003C\/span\u003E\u003C\/a\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\n \u003C\/div\u003E\n\n\n \u003Cdiv class=\"js-react-component\" data-component-name=\"AffiliateBanner\"\u003E{\"align\":\"center\",\"buttonColor\":\"primary\",\"buttonIcon\":\"lock\",\"buttonText\":\"Get a Quote\",\"category\":\"auto_insurance_companies\",\"className\":\"\",\"cloudinaryImageName\":\"referral_logos\\\/us\\\/insurance\\\/statefarm-2\",\"cssNamespace\":\"AffiliateTileBanner\",\"context\":\"\",\"disclaimers\":[\"\"],\"isButtonSquare\":true,\"isUnavailable\":false,\"link\":\"https:\\\/\\\/insurance.mediaalpha.com\\\/zero-click.html?cu=https:\\\/\\\/www.statefarm.com\\\/insurance\\\/auto&carrier=State%20Farm;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\",\"name\":\"State Farm\"}\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"twothird pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodePullquote--root\"\u003E\n \u003Cp class=\"ShortcodePullquote--text ShortcodePullquote--blue\"\u003E\n State Farm is a great auto insurance company for anyone who wants a local agent, a personalized experience and cheaper-than-average rates. \n \u003C\/p\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeInset--root ShortcodeInset--justify-right ShortcodeInset--color-blue\"\u003E\n \u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content ShortcodeList--content-margin\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--bullet\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EAverage six-month premium\u003C\/strong\u003E: $307\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EMarket share\u003C\/strong\u003E: 16%\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EPremiums written\u003C\/strong\u003E: $41.1 bn\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EValuePenguin rating\u003C\/strong\u003E: 4\/5\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EJ.D. Power customer satisfaction score\u003C\/strong\u003E: 881\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--white\" title=\"Read our full State Farm review\" href=\"https:\/\/www.valuepenguin.com\/state-farm-insurance-review\"\u003ERead our full State Farm review\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\u003C\/p\u003E\n\n\u003Cp\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003EState Farm is the largest auto insurance company in the U.S. and possesses 16% of the total available market share. Over 15% of dollars spent on private passenger auto premiums in the U.S. is paid to State Farm.\u003C\/p\u003E\n\n\u003Cp\u003EThe company currently employs approximately 60,000 employees and has nearly 19,000 agents. 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2. Geico

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We consider Geico to be one of the best auto insurance companies. Geico offers low rates, national availability and an easy shopping experience.

  • Average six-month premium: $390
  • Market share: 13%
  • Premiums written: $35.2 bn
  • ValuePenguin rating: 4/5
  • J.D. Power customer satisfaction score: 871
  • Read our full Geico review

Geico, well known for its advertisements featuring an animated gecko, has served as an underwriter to more than 16 million auto policies, which insure more than 24 million vehicles. The company's size allows it to employ more than 40,000 people across nine regional offices, three service centers and three claims centers.

Geico's original customer base consisted of U.S. government employees and military personnel. Today, the insurance company's customer base has expanded to include people in the private sector.

According to our research of the largest auto insurance carriers, Geico is the best insurer for college students.

LEARN MORE: Best Car Insurance Companies for College Students

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Geico\u003C\/h2\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad-none align-left clearfix\"\u003E\n\u003Cdiv class=\"third pad align-left clearfix\"\u003E\n\u003Cdiv class=\"ReactComponent--root\"\u003E\n \u003Cdiv class=\"js-react-component-rendered js-react-component-AffiliateBanner\" data-component-name=\"AffiliateBanner\"\u003E\n \u003Cdiv class=\"AffiliateTileBanner--root AffiliateTileBanner--align-center \"\u003E\u003Cdiv class=\"AffiliateTileBanner--inner\"\u003E\u003Cdiv class=\"AffiliateTileBanner--wrapper\"\u003E\u003Cdiv class=\"AffiliateTileBanner--image\"\u003E\u003Ca class=\"Link--root AffiliateTileBanner--image-link \" href=\"https:\/\/www.geico.com\/\" rel=\"nofollow\" target=\"_blank\" title=\"Geico\"\u003E\u003Cimg alt=\"Geico\" class=\"Image--root lazyload\" data-src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/geico-5\" data-srcset=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/geico-5 1x, \/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/referral_logos\/us\/insurance\/geico-5 2x\" src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/e_blur:1000,q_1,f_auto\/referral_logos\/us\/insurance\/geico-5\"\/\u003E\u003C\/a\u003E\u003C\/div\u003E\u003Cdiv class=\"AffiliateTileBanner--button\"\u003E\u003Cdiv class=\"AffiliateButtonV2--root \"\u003E\u003Ca class=\"Link--root Button--root Button--primary Button--fluid Button--square \" href=\"https:\/\/www.geico.com\/\" rel=\"nofollow\" target=\"_blank\" title=\"Get a Quote\"\u003EGet a Quote\u003Cspan aria-hidden=\"true\" class=\"StyledIcon-sc-e7wugl dBUYFD ValuePenguinIcon--root ValuePenguinIcon--lock\" color=\"inherit\" name=\"lock\"\u003E\u003C\/span\u003E\u003C\/a\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\n \u003C\/div\u003E\n\n\n \u003Cdiv class=\"js-react-component\" data-component-name=\"AffiliateBanner\"\u003E{\"align\":\"center\",\"buttonColor\":\"primary\",\"buttonIcon\":\"lock\",\"buttonText\":\"Get a Quote\",\"category\":\"auto_insurance_companies\",\"className\":\"\",\"cloudinaryImageName\":\"referral_logos\\\/us\\\/insurance\\\/geico-5\",\"cssNamespace\":\"AffiliateTileBanner\",\"context\":\"\",\"disclaimers\":[\"\"],\"isButtonSquare\":true,\"isUnavailable\":false,\"link\":\"https:\\\/\\\/www.geico.com\\\/\",\"name\":\"Geico\"}\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"twothird pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodePullquote--root\"\u003E\n \u003Cp class=\"ShortcodePullquote--text ShortcodePullquote--blue\"\u003E\n We consider Geico to be one of the best auto insurance companies. Geico offers low rates, national availability and an easy shopping experience. \n \u003C\/p\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeInset--root ShortcodeInset--justify-right ShortcodeInset--color-blue\"\u003E\n \u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content ShortcodeList--content-margin\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--bullet\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EAverage six-month premium\u003C\/strong\u003E: $390\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EMarket share\u003C\/strong\u003E: 13%\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EPremiums written\u003C\/strong\u003E: $35.2 bn\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EValuePenguin rating\u003C\/strong\u003E: 4\/5\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EJ.D. Power customer satisfaction score\u003C\/strong\u003E: 871\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--white\" title=\"Read our full Geico review\" href=\"https:\/\/www.valuepenguin.com\/geico-insurance-review\"\u003ERead our full Geico review\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\u003C\/p\u003E\n\n\u003Cp\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003EGeico, well known for its advertisements featuring an animated gecko, has served as an underwriter to more than 16 million auto policies, which insure more than 24 million vehicles. 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3. Progressive

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Progressive offers especially competitive rates to drivers with previous accidents. However, claims satisfaction ratings and coverage options are average.

  • Average six-month premium: $394
  • Market share: 12%
  • Premiums written: $32.3 bn
  • ValuePenguin editor's rating: 3/5
  • J.D. Power customer satisfaction score: 856
  • Read our full Progressive review

Progressive — the third-biggest insurance company in the country — was established in 1937. The company offers the ability to purchase auto insurance in-person, online or by phone. Alternatively, customers can sign up through independent insurance agents.

The company employs more than 35,000 people and has over 400 offices. Progressive is a publicly traded company.

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Ch2 id=\"progressive\"\u003E3. Progressive\u003C\/h2\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad-none align-left clearfix\"\u003E\n\u003Cdiv class=\"third pad align-left clearfix\"\u003E\n\u003Cdiv class=\"ReactComponent--root\"\u003E\n \u003Cdiv class=\"js-react-component-rendered js-react-component-AffiliateBanner\" data-component-name=\"AffiliateBanner\"\u003E\n \u003Cdiv class=\"AffiliateTileBanner--root AffiliateTileBanner--align-center \"\u003E\u003Cdiv class=\"AffiliateTileBanner--inner\"\u003E\u003Cdiv class=\"AffiliateTileBanner--wrapper\"\u003E\u003Cdiv class=\"AffiliateTileBanner--image\"\u003E\u003Ca class=\"Link--root AffiliateTileBanner--image-link \" href=\"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.progressive.com\/auto\/&carrier=Progressive;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\" rel=\"nofollow\" target=\"_blank\" title=\"Progressive\"\u003E\u003Cimg alt=\"Progressive\" class=\"Image--root lazyload\" data-src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/progressive-2\" data-srcset=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/progressive-2 1x, \/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/referral_logos\/us\/insurance\/progressive-2 2x\" src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/e_blur:1000,q_1,f_auto\/referral_logos\/us\/insurance\/progressive-2\"\/\u003E\u003C\/a\u003E\u003C\/div\u003E\u003Cdiv class=\"AffiliateTileBanner--button\"\u003E\u003Cdiv class=\"AffiliateButtonV2--root \"\u003E\u003Ca class=\"Link--root Button--root Button--primary Button--fluid Button--square \" href=\"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.progressive.com\/auto\/&carrier=Progressive;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\" rel=\"nofollow\" target=\"_blank\" title=\"Get a Quote\"\u003EGet a Quote\u003Cspan aria-hidden=\"true\" class=\"StyledIcon-sc-e7wugl dBUYFD ValuePenguinIcon--root ValuePenguinIcon--lock\" color=\"inherit\" name=\"lock\"\u003E\u003C\/span\u003E\u003C\/a\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\n \u003C\/div\u003E\n\n\n \u003Cdiv class=\"js-react-component\" data-component-name=\"AffiliateBanner\"\u003E{\"align\":\"center\",\"buttonColor\":\"primary\",\"buttonIcon\":\"lock\",\"buttonText\":\"Get a Quote\",\"category\":\"auto_insurance_companies\",\"className\":\"\",\"cloudinaryImageName\":\"referral_logos\\\/us\\\/insurance\\\/progressive-2\",\"cssNamespace\":\"AffiliateTileBanner\",\"context\":\"\",\"disclaimers\":[\"\"],\"isButtonSquare\":true,\"isUnavailable\":false,\"link\":\"https:\\\/\\\/insurance.mediaalpha.com\\\/zero-click.html?cu=https:\\\/\\\/www.progressive.com\\\/auto\\\/&carrier=Progressive;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\",\"name\":\"Progressive\"}\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"twothird pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodePullquote--root\"\u003E\n \u003Cp class=\"ShortcodePullquote--text ShortcodePullquote--blue\"\u003E\n Progressive offers especially competitive rates to drivers with previous accidents. However, claims satisfaction ratings and coverage options are average.\n \u003C\/p\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeInset--root ShortcodeInset--justify-right ShortcodeInset--color-blue\"\u003E\n \u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content ShortcodeList--content-margin\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--bullet\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EAverage six-month premium\u003C\/strong\u003E: $394\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EMarket share\u003C\/strong\u003E: 12%\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EPremiums written\u003C\/strong\u003E: $32.3 bn\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EValuePenguin editor's rating\u003C\/strong\u003E: 3\/5\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EJ.D. Power customer satisfaction score\u003C\/strong\u003E: 856\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--white\" title=\"Read our full Progressive review\" href=\"https:\/\/www.valuepenguin.com\/progressive-insurance-review\"\u003ERead our full Progressive review\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\u003C\/p\u003E\n\n\u003Cp\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003EProgressive \u2014 the third-biggest insurance company in the country \u2014 was established in 1937. The company offers the ability to purchase auto insurance in-person, online or by phone. Alternatively, customers can sign up through independent insurance agents.\u003C\/p\u003E\n\n\u003Cp\u003EThe company employs more than 35,000 people and has over 400 offices. Progressive is a publicly traded company.\u003C\/p\u003E\n\n\u003Cp\u003E\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E","padding":"normal"}

4. Allstate

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Allstate typically has better-than-average claims satisfaction ratings, but higher rates. However, the insurer offers a variety of discounts that can make policies more affordable for customers.

  • Average six-month premium: $624
  • Market share: 9%
  • Premiums written: $23.8 bn
  • ValuePenguin editor's rating: 3/5
  • J.D. Power customer satisfaction score: 876
  • Read our full Allstate review

Established in 1931, Allstate is the second-largest publicly traded property and casualty insurance company in America. Similar to State Farm, Allstate has a roster of local agents ready to serve your needs. The company currently employs more than 46,000 people.

Esurance, a subsidiary of Allstate, operates in the same space. According to Allstate, the Esurance brand targets self-directed and brand-sensitive customers, while Allstate is geared towards customers who enjoy local and personal service.

In this list of the biggest car insurance companies, Allstate is our pick for the best customer service.

LEARN MORE: Best Car Insurance Companies for Customer Service

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Ch2 id=\"allstate\"\u003E4. Allstate\u003C\/h2\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad-none align-left clearfix\"\u003E\n\u003Cdiv class=\"third pad align-left clearfix\"\u003E\n\u003Cdiv class=\"ReactComponent--root\"\u003E\n \u003Cdiv class=\"js-react-component-rendered js-react-component-AffiliateBanner\" data-component-name=\"AffiliateBanner\"\u003E\n \u003Cdiv class=\"AffiliateTileBanner--root AffiliateTileBanner--align-center \"\u003E\u003Cdiv class=\"AffiliateTileBanner--inner\"\u003E\u003Cdiv class=\"AffiliateTileBanner--wrapper\"\u003E\u003Cdiv class=\"AffiliateTileBanner--image\"\u003E\u003Ca class=\"Link--root AffiliateTileBanner--image-link \" href=\"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.allstate.com\/auto-insurance.aspx&carrier=Allstate;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\" rel=\"nofollow\" target=\"_blank\" title=\"Allstate\"\u003E\u003Cimg alt=\"Allstate\" class=\"Image--root lazyload\" data-src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/allstate-3\" data-srcset=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/allstate-3 1x, \/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/referral_logos\/us\/insurance\/allstate-3 2x\" src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/e_blur:1000,q_1,f_auto\/referral_logos\/us\/insurance\/allstate-3\"\/\u003E\u003C\/a\u003E\u003C\/div\u003E\u003Cdiv class=\"AffiliateTileBanner--button\"\u003E\u003Cdiv class=\"AffiliateButtonV2--root \"\u003E\u003Ca class=\"Link--root Button--root Button--primary Button--fluid Button--square \" href=\"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.allstate.com\/auto-insurance.aspx&carrier=Allstate;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\" rel=\"nofollow\" target=\"_blank\" title=\"Get a Quote\"\u003EGet a Quote\u003Cspan aria-hidden=\"true\" class=\"StyledIcon-sc-e7wugl dBUYFD ValuePenguinIcon--root ValuePenguinIcon--lock\" color=\"inherit\" name=\"lock\"\u003E\u003C\/span\u003E\u003C\/a\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\n \u003C\/div\u003E\n\n\n \u003Cdiv class=\"js-react-component\" data-component-name=\"AffiliateBanner\"\u003E{\"align\":\"center\",\"buttonColor\":\"primary\",\"buttonIcon\":\"lock\",\"buttonText\":\"Get a Quote\",\"category\":\"auto_insurance_companies\",\"className\":\"\",\"cloudinaryImageName\":\"referral_logos\\\/us\\\/insurance\\\/allstate-3\",\"cssNamespace\":\"AffiliateTileBanner\",\"context\":\"\",\"disclaimers\":[\"\"],\"isButtonSquare\":true,\"isUnavailable\":false,\"link\":\"https:\\\/\\\/insurance.mediaalpha.com\\\/zero-click.html?cu=https:\\\/\\\/www.allstate.com\\\/auto-insurance.aspx&carrier=Allstate;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\",\"name\":\"Allstate\"}\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"twothird pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodePullquote--root\"\u003E\n \u003Cp class=\"ShortcodePullquote--text ShortcodePullquote--blue\"\u003E\n Allstate typically has better-than-average claims satisfaction ratings, but higher rates. However, the insurer offers a variety of discounts that can make policies more affordable for customers. \n \u003C\/p\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeInset--root ShortcodeInset--justify-right ShortcodeInset--color-blue\"\u003E\n \u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content ShortcodeList--content-margin\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--bullet\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EAverage six-month premium\u003C\/strong\u003E: $624\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EMarket share\u003C\/strong\u003E: 9%\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EPremiums written\u003C\/strong\u003E: $23.8 bn\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EValuePenguin editor's rating\u003C\/strong\u003E: 3\/5\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EJ.D. Power customer satisfaction score\u003C\/strong\u003E: 876\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--white\" title=\"Read our full Allstate review\" href=\"https:\/\/www.valuepenguin.com\/allstate-auto-insurance-review\"\u003ERead our full Allstate review\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\u003C\/p\u003E\n\n\u003Cp\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003EEstablished in 1931, Allstate is the second-largest publicly traded property and casualty insurance company in America. Similar to State Farm, Allstate has a roster of local agents ready to serve your needs. The company currently employs more than 46,000 people.\u003C\/p\u003E\n\n\u003Cp\u003EEsurance, a subsidiary of Allstate, operates in the same space. According to Allstate, the Esurance brand targets self-directed and brand-sensitive customers, while Allstate is geared towards customers who enjoy local and personal service.\u003C\/p\u003E\n\n\u003Cp\u003EIn this list of the biggest car insurance companies, Allstate is our pick for the best customer service.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cstrong\u003ELEARN MORE\u003C\/strong\u003E: \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Best Car Insurance Companies for Customer Service\" href=\"https:\/\/www.valuepenguin.com\/best-auto-insurance#service\"\u003EBest Car Insurance Companies for Customer Service\u003C\/a\u003E\u003C\/span\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E","padding":"normal"}

5. USAA

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USAA is one of the best auto insurers in the country. If you meet their qualification criteria, you'll enjoy extremely competitive rates, great customer service and speedy claims responses. The only downside is USAA's restricted membership.

  • Average six-month premium: $223
  • Market share: 6%
  • Premiums written: $15.2 bn
  • ValuePenguin editor's rating: 4.5/5
  • J.D. Power customer satisfaction score: 890
  • Read our full USAA review

USAA was founded by 25 Army officers who decided to insure each other's vehicles in 1922. Today, the company serves millions of members associated with the U.S. military, including current and former service members, family of service members, and cadets or midshipmen.

USAA is headquartered in San Antonio. The corporate campus' length extends three-quarters of a mile. USAA is the largest private company located in San Antonio.

Because of its focus on the U.S. armed forces, USAA is our top pick for the best and cheapest car insurance for veterans and military service members.

LEARN MORE: Best Car Insurance Companies for Veterans and Military Families

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Ch2 id=\"usaa\"\u003E5. USAA\u003C\/h2\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad-none align-left clearfix\"\u003E\n\u003Cdiv class=\"third pad align-left clearfix\"\u003E\n\u003Cdiv class=\"ReactComponent--root\"\u003E\n \u003Cdiv class=\"js-react-component-rendered js-react-component-AffiliateBanner\" data-component-name=\"AffiliateBanner\"\u003E\n \u003Cdiv class=\"AffiliateTileBanner--root AffiliateTileBanner--align-center \"\u003E\u003Cdiv class=\"AffiliateTileBanner--inner\"\u003E\u003Cdiv class=\"AffiliateTileBanner--wrapper\"\u003E\u003Cdiv class=\"AffiliateTileBanner--image\"\u003E\u003Ca class=\"Link--root AffiliateTileBanner--image-link \" href=\"https:\/\/www.usaa.com\/inet\/wc\/insurance-products?akredirect=true\" rel=\"nofollow\" target=\"_blank\" title=\"USAA\"\u003E\u003Cimg alt=\"USAA\" class=\"Image--root lazyload\" data-src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/usaa-3\" data-srcset=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/usaa-3 1x, \/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/referral_logos\/us\/insurance\/usaa-3 2x\" src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/e_blur:1000,q_1,f_auto\/referral_logos\/us\/insurance\/usaa-3\"\/\u003E\u003C\/a\u003E\u003C\/div\u003E\u003Cdiv class=\"AffiliateTileBanner--button\"\u003E\u003Cdiv class=\"AffiliateButtonV2--root \"\u003E\u003Ca class=\"Link--root Button--root Button--primary Button--fluid Button--square \" href=\"https:\/\/www.usaa.com\/inet\/wc\/insurance-products?akredirect=true\" rel=\"nofollow\" target=\"_blank\" title=\"Get a Quote\"\u003EGet a Quote\u003Cspan aria-hidden=\"true\" class=\"StyledIcon-sc-e7wugl dBUYFD ValuePenguinIcon--root ValuePenguinIcon--lock\" color=\"inherit\" name=\"lock\"\u003E\u003C\/span\u003E\u003C\/a\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\n \u003C\/div\u003E\n\n\n \u003Cdiv class=\"js-react-component\" data-component-name=\"AffiliateBanner\"\u003E{\"align\":\"center\",\"buttonColor\":\"primary\",\"buttonIcon\":\"lock\",\"buttonText\":\"Get a Quote\",\"category\":\"auto_insurance_companies\",\"className\":\"\",\"cloudinaryImageName\":\"referral_logos\\\/us\\\/insurance\\\/usaa-3\",\"cssNamespace\":\"AffiliateTileBanner\",\"context\":\"\",\"disclaimers\":[\"\"],\"isButtonSquare\":true,\"isUnavailable\":false,\"link\":\"https:\\\/\\\/www.usaa.com\\\/inet\\\/wc\\\/insurance-products?akredirect=true\",\"name\":\"USAA\"}\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"twothird pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodePullquote--root\"\u003E\n \u003Cp class=\"ShortcodePullquote--text ShortcodePullquote--blue\"\u003E\n USAA is one of the best auto insurers in the country. If you meet their qualification criteria, you'll enjoy extremely competitive rates, great customer service and speedy claims responses. The only downside is USAA's restricted membership.\n \u003C\/p\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeInset--root ShortcodeInset--justify-right ShortcodeInset--color-blue\"\u003E\n \u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content ShortcodeList--content-margin\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--bullet\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EAverage six-month premium\u003C\/strong\u003E: $223\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EMarket share\u003C\/strong\u003E: 6%\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EPremiums written\u003C\/strong\u003E: $15.2 bn\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EValuePenguin editor's rating\u003C\/strong\u003E: 4.5\/5\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EJ.D. Power customer satisfaction score\u003C\/strong\u003E: 890\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--white\" title=\"Read our full USAA review\" href=\"https:\/\/www.valuepenguin.com\/usaa-insurance-review\"\u003ERead our full USAA review\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\u003C\/p\u003E\n\n\u003Cp\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003EUSAA was founded by 25 Army officers who decided to insure each other's vehicles in 1922. Today, the company serves millions of members associated with the U.S. military, including current and former service members, family of service members, and cadets or midshipmen.\u003C\/p\u003E\n\n\u003Cp\u003EUSAA is headquartered in San Antonio. The corporate campus' length extends three-quarters of a mile. USAA is the largest private company located in San Antonio.\u003C\/p\u003E\n\n\u003Cp\u003EBecause of its focus on the U.S. armed forces, USAA is our top pick for the best and cheapest car insurance for veterans and military service members.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cstrong\u003ELEARN MORE\u003C\/strong\u003E: \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Best Car Insurance Companies for Veterans and Military Families\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-veterans-and-military-members\"\u003EBest Car Insurance Companies for Veterans and Military Families\u003C\/a\u003E\u003C\/span\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E","padding":"normal"}

6. Liberty Mutual

{"align":"center","buttonColor":"primary","buttonIcon":"lock","buttonText":"Get a Quote","category":"auto_insurance_companies","className":"","cloudinaryImageName":"referral_logos\/us\/insurance\/libertymutual-3","cssNamespace":"AffiliateTileBanner","context":"","disclaimers":[""],"isButtonSquare":true,"isUnavailable":false,"link":"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.libertymutual.com\/&carrier=Liberty%20Mutual;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA","name":"Liberty Mutual"}

Liberty Mutual's rates vary by location more than the typical insurer, and customers rank the company's claims satisfaction process as below average.

  • Average six-month premium: $627
  • Market share: 5%
  • Premiums written: $12.1 bn
  • ValuePenguin editor's rating: 3.5/5
  • J.D. Power customer satisfaction score: 867
  • Read our full Liberty Mutual review

Liberty Mutual is one of the largest insurance companies in the U.S. and has been around for over 100 years, including a large international presence — with operations in 17 countries. The international company sells property and casualty, health and life insurance policies.

Liberty Mutual's auto insurance offerings can be accessed via its call center, website, a local Liberty Mutual agent or broker, or representatives from its network of regional subsidiaries. One thing to note about Liberty Mutual's coverage is that rates are guaranteed for a year.

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Ch2 id=\"liberty-mutual\"\u003E6. Liberty Mutual\u003C\/h2\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad-none align-left clearfix\"\u003E\n\u003Cdiv class=\"third pad align-left clearfix\"\u003E\n\u003Cdiv class=\"ReactComponent--root\"\u003E\n \u003Cdiv class=\"js-react-component-rendered js-react-component-AffiliateBanner\" data-component-name=\"AffiliateBanner\"\u003E\n \u003Cdiv class=\"AffiliateTileBanner--root AffiliateTileBanner--align-center \"\u003E\u003Cdiv class=\"AffiliateTileBanner--inner\"\u003E\u003Cdiv class=\"AffiliateTileBanner--wrapper\"\u003E\u003Cdiv class=\"AffiliateTileBanner--image\"\u003E\u003Ca class=\"Link--root AffiliateTileBanner--image-link \" href=\"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.libertymutual.com\/&carrier=Liberty%20Mutual;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\" rel=\"nofollow\" target=\"_blank\" title=\"Liberty Mutual\"\u003E\u003Cimg alt=\"Liberty Mutual\" class=\"Image--root lazyload\" data-src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/libertymutual-3\" data-srcset=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/libertymutual-3 1x, \/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/referral_logos\/us\/insurance\/libertymutual-3 2x\" src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/e_blur:1000,q_1,f_auto\/referral_logos\/us\/insurance\/libertymutual-3\"\/\u003E\u003C\/a\u003E\u003C\/div\u003E\u003Cdiv class=\"AffiliateTileBanner--button\"\u003E\u003Cdiv class=\"AffiliateButtonV2--root \"\u003E\u003Ca class=\"Link--root Button--root Button--primary Button--fluid Button--square \" href=\"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.libertymutual.com\/&carrier=Liberty%20Mutual;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\" rel=\"nofollow\" target=\"_blank\" title=\"Get a Quote\"\u003EGet a Quote\u003Cspan aria-hidden=\"true\" class=\"StyledIcon-sc-e7wugl dBUYFD ValuePenguinIcon--root ValuePenguinIcon--lock\" color=\"inherit\" name=\"lock\"\u003E\u003C\/span\u003E\u003C\/a\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\n \u003C\/div\u003E\n\n\n \u003Cdiv class=\"js-react-component\" data-component-name=\"AffiliateBanner\"\u003E{\"align\":\"center\",\"buttonColor\":\"primary\",\"buttonIcon\":\"lock\",\"buttonText\":\"Get a Quote\",\"category\":\"auto_insurance_companies\",\"className\":\"\",\"cloudinaryImageName\":\"referral_logos\\\/us\\\/insurance\\\/libertymutual-3\",\"cssNamespace\":\"AffiliateTileBanner\",\"context\":\"\",\"disclaimers\":[\"\"],\"isButtonSquare\":true,\"isUnavailable\":false,\"link\":\"https:\\\/\\\/insurance.mediaalpha.com\\\/zero-click.html?cu=https:\\\/\\\/www.libertymutual.com\\\/&carrier=Liberty%20Mutual;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\",\"name\":\"Liberty Mutual\"}\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"twothird pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodePullquote--root\"\u003E\n \u003Cp class=\"ShortcodePullquote--text ShortcodePullquote--blue\"\u003E\n Liberty Mutual's rates vary by location more than the typical insurer, and customers rank the company's claims satisfaction process as below average. \n \u003C\/p\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeInset--root ShortcodeInset--justify-right ShortcodeInset--color-blue\"\u003E\n \u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content ShortcodeList--content-margin\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--bullet\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EAverage six-month premium\u003C\/strong\u003E: $627\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EMarket share\u003C\/strong\u003E: 5%\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EPremiums written\u003C\/strong\u003E: $12.1 bn\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EValuePenguin editor's rating\u003C\/strong\u003E: 3.5\/5\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EJ.D. Power customer satisfaction score\u003C\/strong\u003E: 867\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--white\" title=\"Read our full Liberty Mutual review\" href=\"https:\/\/www.valuepenguin.com\/liberty-mutual-insurance-review\"\u003ERead our full Liberty Mutual review\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\u003C\/p\u003E\n\n\u003Cp\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003ELiberty Mutual is one of the largest insurance companies in the U.S. and has been around for over 100 years, including a large international presence \u2014 with operations in 17 countries. The international company sells property and casualty, health and life insurance policies.\u003C\/p\u003E\n\n\u003Cp\u003ELiberty Mutual's auto insurance offerings can be accessed via its call center, website, a local Liberty Mutual agent or broker, or representatives from its network of regional subsidiaries. One thing to note about Liberty Mutual's coverage is that rates are guaranteed for a year.\u003C\/p\u003E\n\n\u003Cp\u003E\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E","padding":"normal"}

7. Farmers

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Farmers offers decent discounts, coverage options and great customer service. However, Farmers' non-competitive rates may be cost-prohibitive for some shoppers.

  • Average six-month premium: $553
  • Market share: 4%
  • Premiums written: $10.7 bn
  • ValuePenguin editor's rating: 4/5
  • J.D. Power customer satisfaction score: 872
  • Read our full Farmers review

Farmers began as an insurance company providing coverage to farmers' vehicles. Since then it has evolved to become the seventh-largest insurance company in the country.

It’s hard to find an insurance company that offers more products than Farmers. It offers basic auto insurance, pet insurance and even investment products among a variety of other insurance products. Farmers employs nearly 13,000 people, underwriting more than 19 million policies across 50 states.

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Ch2 id=\"farmers\"\u003E7. Farmers\u003C\/h2\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad-none align-left clearfix\"\u003E\n\u003Cdiv class=\"third pad align-left clearfix\"\u003E\n\u003Cdiv class=\"ReactComponent--root\"\u003E\n \u003Cdiv class=\"js-react-component-rendered js-react-component-AffiliateBanner\" data-component-name=\"AffiliateBanner\"\u003E\n \u003Cdiv class=\"AffiliateTileBanner--root AffiliateTileBanner--align-center \"\u003E\u003Cdiv class=\"AffiliateTileBanner--inner\"\u003E\u003Cdiv class=\"AffiliateTileBanner--wrapper\"\u003E\u003Cdiv class=\"AffiliateTileBanner--image\"\u003E\u003Ca class=\"Link--root AffiliateTileBanner--image-link \" href=\"https:\/\/www.farmers.com\/\" rel=\"nofollow\" target=\"_blank\" title=\"Farmers\"\u003E\u003Cimg alt=\"Farmers\" class=\"Image--root lazyload\" data-src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/farmers-3\" data-srcset=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/farmers-3 1x, \/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/referral_logos\/us\/insurance\/farmers-3 2x\" src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/e_blur:1000,q_1,f_auto\/referral_logos\/us\/insurance\/farmers-3\"\/\u003E\u003C\/a\u003E\u003C\/div\u003E\u003Cdiv class=\"AffiliateTileBanner--button\"\u003E\u003Cdiv class=\"AffiliateButtonV2--root \"\u003E\u003Ca class=\"Link--root Button--root Button--primary Button--fluid Button--square \" href=\"https:\/\/www.farmers.com\/\" rel=\"nofollow\" target=\"_blank\" title=\"Get a Quote\"\u003EGet a Quote\u003Cspan aria-hidden=\"true\" class=\"StyledIcon-sc-e7wugl dBUYFD ValuePenguinIcon--root ValuePenguinIcon--lock\" color=\"inherit\" name=\"lock\"\u003E\u003C\/span\u003E\u003C\/a\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\n \u003C\/div\u003E\n\n\n \u003Cdiv class=\"js-react-component\" data-component-name=\"AffiliateBanner\"\u003E{\"align\":\"center\",\"buttonColor\":\"primary\",\"buttonIcon\":\"lock\",\"buttonText\":\"Get a Quote\",\"category\":\"auto_insurance_companies\",\"className\":\"\",\"cloudinaryImageName\":\"referral_logos\\\/us\\\/insurance\\\/farmers-3\",\"cssNamespace\":\"AffiliateTileBanner\",\"context\":\"\",\"disclaimers\":[\"\"],\"isButtonSquare\":true,\"isUnavailable\":false,\"link\":\"https:\\\/\\\/www.farmers.com\\\/\",\"name\":\"Farmers\"}\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"twothird pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodePullquote--root\"\u003E\n \u003Cp class=\"ShortcodePullquote--text ShortcodePullquote--blue\"\u003E\n Farmers offers decent discounts, coverage options and great customer service. However, Farmers' non-competitive rates may be cost-prohibitive for some shoppers.\n \u003C\/p\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeInset--root ShortcodeInset--justify-right ShortcodeInset--color-blue\"\u003E\n \u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content ShortcodeList--content-margin\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--bullet\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EAverage six-month premium\u003C\/strong\u003E: $553\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EMarket share\u003C\/strong\u003E: 4%\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EPremiums written\u003C\/strong\u003E: $10.7 bn\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EValuePenguin editor's rating\u003C\/strong\u003E: 4\/5\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EJ.D. Power customer satisfaction score\u003C\/strong\u003E: 872\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--white\" title=\"Read our full Farmers review\" href=\"https:\/\/www.valuepenguin.com\/farmers-insurance-review\"\u003ERead our full Farmers review\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\u003C\/p\u003E\n\n\u003Cp\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003EFarmers began as an insurance company providing coverage to farmers' vehicles. Since then it has evolved to become the seventh-largest insurance company in the country.\u003C\/p\u003E\n\n\u003Cp\u003EIt\u2019s hard to find an insurance company that offers more products than Farmers. It offers basic auto insurance, pet insurance and even investment products among a variety of other insurance products. Farmers employs nearly 13,000 people, underwriting more than 19 million policies across 50 states.\u003C\/p\u003E\n\n\u003Cp\u003E\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E","padding":"normal"}

8. Nationwide

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Nationwide is below average for affordability, and its customer reviews tend to veer negative. Nationwide offers standard coverages and discounts you’d expect from a large national insurer.

  • Average six-month premium: $466
  • Market share: 3%
  • Premiums written: $6.6 bn
  • ValuePenguin editor's rating: 3.5/5
  • J.D. Power customer satisfaction score: 876
  • Read our full Nationwide review

Nationwide does business across several verticals — including financial services, commercial lines and personal lines — in all 50 U.S. states. Nationwide has contributed more than $430 million to nonprofit organizations since 2000.

Nationwide has a motto called "On Your Side" that influences how auto insurance claims are handled, and how policies and premiums are determined. The company also recommends getting an annual checkup to ensure policyholders understand their benefits and declarations, as well as new discounts or changes to keep premiums steady and coverage adequate. Nationwide calls this consultation its "On Your Side" Review.

Among this list of the largest car insurance companies, Nationwide offers the best deals for customers looking to bundle their home and auto insurance policies.

LEARN MORE: Best Car Insurance Companies for Bundling Home and Auto Insurance

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Ch2 id=\"nationwide\"\u003E8. Nationwide\u003C\/h2\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad-none align-left clearfix\"\u003E\n\u003Cdiv class=\"third pad align-left clearfix\"\u003E\n\u003Cdiv class=\"ReactComponent--root\"\u003E\n \u003Cdiv class=\"js-react-component-rendered js-react-component-AffiliateBanner\" data-component-name=\"AffiliateBanner\"\u003E\n \u003Cdiv class=\"AffiliateTileBanner--root AffiliateTileBanner--align-center \"\u003E\u003Cdiv class=\"AffiliateTileBanner--inner\"\u003E\u003Cdiv class=\"AffiliateTileBanner--wrapper\"\u003E\u003Cdiv class=\"AffiliateTileBanner--image\"\u003E\u003Ca class=\"Link--root AffiliateTileBanner--image-link \" href=\"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.nationwide.com\/&carrier=Nationwide;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\" rel=\"nofollow\" target=\"_blank\" title=\"Nationwide\"\u003E\u003Cimg alt=\"Nationwide\" class=\"Image--root lazyload\" data-src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/nationwide-4\" data-srcset=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/nationwide-4 1x, \/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/referral_logos\/us\/insurance\/nationwide-4 2x\" src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/e_blur:1000,q_1,f_auto\/referral_logos\/us\/insurance\/nationwide-4\"\/\u003E\u003C\/a\u003E\u003C\/div\u003E\u003Cdiv class=\"AffiliateTileBanner--button\"\u003E\u003Cdiv class=\"AffiliateButtonV2--root \"\u003E\u003Ca class=\"Link--root Button--root Button--primary Button--fluid Button--square \" href=\"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.nationwide.com\/&carrier=Nationwide;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\" rel=\"nofollow\" target=\"_blank\" title=\"Get a Quote\"\u003EGet a Quote\u003Cspan aria-hidden=\"true\" class=\"StyledIcon-sc-e7wugl dBUYFD ValuePenguinIcon--root ValuePenguinIcon--lock\" color=\"inherit\" name=\"lock\"\u003E\u003C\/span\u003E\u003C\/a\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\n \u003C\/div\u003E\n\n\n \u003Cdiv class=\"js-react-component\" data-component-name=\"AffiliateBanner\"\u003E{\"align\":\"center\",\"buttonColor\":\"primary\",\"buttonIcon\":\"lock\",\"buttonText\":\"Get a Quote\",\"category\":\"auto_insurance_companies\",\"className\":\"\",\"cloudinaryImageName\":\"referral_logos\\\/us\\\/insurance\\\/nationwide-4\",\"cssNamespace\":\"AffiliateTileBanner\",\"context\":\"\",\"disclaimers\":[\"\"],\"isButtonSquare\":true,\"isUnavailable\":false,\"link\":\"https:\\\/\\\/insurance.mediaalpha.com\\\/zero-click.html?cu=https:\\\/\\\/www.nationwide.com\\\/&carrier=Nationwide;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\",\"name\":\"Nationwide\"}\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"twothird pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodePullquote--root\"\u003E\n \u003Cp class=\"ShortcodePullquote--text ShortcodePullquote--blue\"\u003E\n Nationwide is below average for affordability, and its customer reviews tend to veer negative. Nationwide offers standard coverages and discounts you\u2019d expect from a large national insurer. \n \u003C\/p\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeInset--root ShortcodeInset--justify-right ShortcodeInset--color-blue\"\u003E\n \u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content ShortcodeList--content-margin\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--bullet\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EAverage six-month premium\u003C\/strong\u003E: $466\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EMarket share\u003C\/strong\u003E: 3%\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EPremiums written\u003C\/strong\u003E: $6.6 bn\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EValuePenguin editor's rating\u003C\/strong\u003E: 3.5\/5\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EJ.D. Power customer satisfaction score\u003C\/strong\u003E: 876\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--white\" title=\"Read our full Nationwide review\" href=\"https:\/\/www.valuepenguin.com\/nationwide-insurance-review\"\u003ERead our full Nationwide review\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\u003C\/p\u003E\n\n\u003Cp\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003ENationwide does business across several verticals \u2014 including financial services, commercial lines and personal lines \u2014 in all 50 U.S. states. Nationwide has contributed more than $430 million to nonprofit organizations since 2000.\u003C\/p\u003E\n\n\u003Cp\u003ENationwide has a motto called \"On Your Side\" that influences how auto insurance claims are handled, and how policies and premiums are determined. The company also recommends getting an annual checkup to ensure policyholders understand their benefits and declarations, as well as new discounts or changes to keep premiums steady and coverage adequate. Nationwide calls this consultation its \"On Your Side\" Review.\u003C\/p\u003E\n\n\u003Cp\u003EAmong this list of the largest car insurance companies, Nationwide offers the best deals for customers looking to bundle their home and auto insurance policies.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cstrong\u003ELEARN MORE\u003C\/strong\u003E: \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Best Car Insurance Companies for Bundling Home and Auto Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-home-car-insurance-bundle\"\u003EBest Car Insurance Companies for Bundling Home and Auto Insurance\u003C\/a\u003E\u003C\/span\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E","padding":"normal"}

9. American Family

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American Family is a solid choice for auto insurance. The company offers decent rates, which have the potential to be great when policyholders utilize some of its many discounts.

  • Average six-month premium: $387
  • Market share: 2%
  • Premiums written: $5.8 bn
  • ValuePenguin editor's rating: 4/5
  • J.D. Power customer satisfaction score: 862
  • Read our full American Family review

American Family was established with the initial goal of insuring farmers. In the 1930s, the company expanded and began to focus on insuring non-farmers as well. Today, the company is one of the biggest insurance companies in the U.S., and the largest insurer by market share in the state of Wisconsin.

The company is known for its extensive discount catalogue that can make its already decent rates even more affordable for customers. However, American Family currently underwrites policies in just 17 states.

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Ch2 id=\"american-family\"\u003E9. American Family\u003C\/h2\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad-none align-left clearfix\"\u003E\n\u003Cdiv class=\"third pad align-left clearfix\"\u003E\n\u003Cdiv class=\"ReactComponent--root\"\u003E\n \u003Cdiv class=\"js-react-component-rendered js-react-component-AffiliateBanner\" data-component-name=\"AffiliateBanner\"\u003E\n \u003Cdiv class=\"AffiliateTileBanner--root AffiliateTileBanner--align-center \"\u003E\u003Cdiv class=\"AffiliateTileBanner--inner\"\u003E\u003Cdiv class=\"AffiliateTileBanner--wrapper\"\u003E\u003Cdiv class=\"AffiliateTileBanner--image\"\u003E\u003Ca class=\"Link--root AffiliateTileBanner--image-link \" href=\"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.amfam.com\/&carrier=American%20Family;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\" rel=\"nofollow\" target=\"_blank\" title=\"American Family\"\u003E\u003Cimg alt=\"American Family\" class=\"Image--root lazyload\" data-src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/amerfam-1\" data-srcset=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/amerfam-1 1x, \/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/referral_logos\/us\/insurance\/amerfam-1 2x\" src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/e_blur:1000,q_1,f_auto\/referral_logos\/us\/insurance\/amerfam-1\"\/\u003E\u003C\/a\u003E\u003C\/div\u003E\u003Cdiv class=\"AffiliateTileBanner--button\"\u003E\u003Cdiv class=\"AffiliateButtonV2--root \"\u003E\u003Ca class=\"Link--root Button--root Button--primary Button--fluid Button--square \" href=\"https:\/\/insurance.mediaalpha.com\/zero-click.html?cu=https:\/\/www.amfam.com\/&carrier=American%20Family;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\" rel=\"nofollow\" target=\"_blank\" title=\"Get a Quote\"\u003EGet a Quote\u003Cspan aria-hidden=\"true\" class=\"StyledIcon-sc-e7wugl dBUYFD ValuePenguinIcon--root ValuePenguinIcon--lock\" color=\"inherit\" name=\"lock\"\u003E\u003C\/span\u003E\u003C\/a\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\n \u003C\/div\u003E\n\n\n \u003Cdiv class=\"js-react-component\" data-component-name=\"AffiliateBanner\"\u003E{\"align\":\"center\",\"buttonColor\":\"primary\",\"buttonIcon\":\"lock\",\"buttonText\":\"Get a Quote\",\"category\":\"auto_insurance_companies\",\"className\":\"\",\"cloudinaryImageName\":\"referral_logos\\\/us\\\/insurance\\\/amerfam-1\",\"cssNamespace\":\"AffiliateTileBanner\",\"context\":\"\",\"disclaimers\":[\"\"],\"isButtonSquare\":true,\"isUnavailable\":false,\"link\":\"https:\\\/\\\/insurance.mediaalpha.com\\\/zero-click.html?cu=https:\\\/\\\/www.amfam.com\\\/&carrier=American%20Family;TKzt2XWu22mNOdQNJ2a4RzoV6BRPpNDUopJCfh7rAsgYilC61MaFepVn5p1L6_mIOJTZIazfFd3kcRBYBf9NIndYo-7WqA\",\"name\":\"American Family\"}\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"twothird pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodePullquote--root\"\u003E\n \u003Cp class=\"ShortcodePullquote--text ShortcodePullquote--blue\"\u003E\n American Family is a solid choice for auto insurance. The company offers decent rates, which have the potential to be great when policyholders utilize some of its many discounts. \n \u003C\/p\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeInset--root ShortcodeInset--justify-right ShortcodeInset--color-blue\"\u003E\n \u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content ShortcodeList--content-margin\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--bullet\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EAverage six-month premium\u003C\/strong\u003E: $387\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EMarket share\u003C\/strong\u003E: 2%\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EPremiums written\u003C\/strong\u003E: $5.8 bn\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EValuePenguin editor's rating\u003C\/strong\u003E: 4\/5\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EJ.D. Power customer satisfaction score\u003C\/strong\u003E: 862\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--white\" title=\"Read our full American Family review\" href=\"https:\/\/www.valuepenguin.com\/american-family-insurance-review\"\u003ERead our full American Family review\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\u003C\/p\u003E\n\n\u003Cp\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003EAmerican Family was established with the initial goal of insuring farmers. In the 1930s, the company expanded and began to focus on insuring non-farmers as well. Today, the company is one of the biggest insurance companies in the U.S., and the largest insurer by market share in the state of Wisconsin.\u003C\/p\u003E\n\n\u003Cp\u003EThe company is known for its extensive discount catalogue that can make its already decent rates even more affordable for customers. However, American Family currently underwrites policies in just 17 states.\u003C\/p\u003E\n\n\u003Cp\u003E\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E","padding":"normal"}

10. Travelers

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Moderate complaint ratings and a variety of discounts make Travelers a good choice for auto insurance coverage.

  • Average six-month premium: $623
  • Market share: 2%
  • Premiums written: $5.5 bn
  • ValuePenguin editor's rating: 3.5/5
  • J.D. Power customer satisfaction score: 861
  • Read our full Travelers review

Travelers is more than 160 years old, making it one of the oldest insurance companies operating today. In fact, Travelers issued its first auto insurance policy in 1897, before the Ford Model T was invented.

The company has more than 30,000 employees and 13,500 independent agents and brokers in multiple countries — including the United States, Canada and Brazil.

Notably, Travelers offers a rate pricing program known as IntelliDrive, which determines your rates by assessing your safe driving behavior via a smartphone app. Enrolling in IntelliDrive can potentially reduce your annual insurance rates by as much as 20% if you exhibit good driving habits.

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Ch2 id=\"travelers\"\u003E10. Travelers\u003C\/h2\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad-none align-left clearfix\"\u003E\n\u003Cdiv class=\"third pad align-left clearfix\"\u003E\n\u003Cdiv class=\"ReactComponent--root\"\u003E\n \u003Cdiv class=\"js-react-component-rendered js-react-component-AffiliateBanner\" data-component-name=\"AffiliateBanner\"\u003E\n \u003Cdiv class=\"AffiliateTileBanner--root AffiliateTileBanner--align-center \"\u003E\u003Cdiv class=\"AffiliateTileBanner--inner\"\u003E\u003Cdiv class=\"AffiliateTileBanner--wrapper\"\u003E\u003Cdiv class=\"AffiliateTileBanner--image\"\u003E\u003Ca class=\"Link--root AffiliateTileBanner--image-link \" href=\"https:\/\/www.travelers.com\/\" rel=\"nofollow\" target=\"_blank\" title=\"Travelers\"\u003E\u003Cimg alt=\"Travelers\" class=\"Image--root lazyload\" data-src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/travelers-2\" data-srcset=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_1.0,f_auto,q_auto\/referral_logos\/us\/insurance\/travelers-2 1x, \/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/referral_logos\/us\/insurance\/travelers-2 2x\" src=\"\/\/res.cloudinary.com\/value-penguin\/image\/upload\/dpr_2.0,f_auto,q_auto\/e_blur:1000,q_1,f_auto\/referral_logos\/us\/insurance\/travelers-2\"\/\u003E\u003C\/a\u003E\u003C\/div\u003E\u003Cdiv class=\"AffiliateTileBanner--button\"\u003E\u003Cdiv class=\"AffiliateButtonV2--root \"\u003E\u003Ca class=\"Link--root Button--root Button--primary Button--fluid Button--square \" href=\"https:\/\/www.travelers.com\/\" rel=\"nofollow\" target=\"_blank\" title=\"Get a Quote\"\u003EGet a Quote\u003Cspan aria-hidden=\"true\" class=\"StyledIcon-sc-e7wugl dBUYFD ValuePenguinIcon--root ValuePenguinIcon--lock\" color=\"inherit\" name=\"lock\"\u003E\u003C\/span\u003E\u003C\/a\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\n \u003C\/div\u003E\n\n\n \u003Cdiv class=\"js-react-component\" data-component-name=\"AffiliateBanner\"\u003E{\"align\":\"center\",\"buttonColor\":\"primary\",\"buttonIcon\":\"lock\",\"buttonText\":\"Get a Quote\",\"category\":\"auto_insurance_companies\",\"className\":\"\",\"cloudinaryImageName\":\"referral_logos\\\/us\\\/insurance\\\/travelers-2\",\"cssNamespace\":\"AffiliateTileBanner\",\"context\":\"\",\"disclaimers\":[\"\"],\"isButtonSquare\":true,\"isUnavailable\":false,\"link\":\"https:\\\/\\\/www.travelers.com\\\/\",\"name\":\"Travelers\"}\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"twothird pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodePullquote--root\"\u003E\n \u003Cp class=\"ShortcodePullquote--text ShortcodePullquote--blue\"\u003E\n Moderate complaint ratings and a variety of discounts make Travelers a good choice for auto insurance coverage. \n \u003C\/p\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeInset--root ShortcodeInset--justify-right ShortcodeInset--color-blue\"\u003E\n \u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content ShortcodeList--content-margin\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--bullet\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EAverage six-month premium\u003C\/strong\u003E: $623\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EMarket share\u003C\/strong\u003E: 2%\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EPremiums written\u003C\/strong\u003E: $5.5 bn\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EValuePenguin editor's rating\u003C\/strong\u003E: 3.5\/5\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EJ.D. Power customer satisfaction score\u003C\/strong\u003E: 861\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--white\" title=\"Read our full Travelers review\" href=\"https:\/\/www.valuepenguin.com\/travelers-insurance-review\"\u003ERead our full Travelers review\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\u003C\/p\u003E\n\n\u003Cp\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003ETravelers is more than 160 years old, making it one of the oldest insurance companies operating today. In fact, Travelers issued its first auto insurance policy in 1897, before the Ford Model T was invented.\u003C\/p\u003E\n\n\u003Cp\u003EThe company has more than 30,000 employees and 13,500 independent agents and brokers in multiple countries \u2014 including the United States, Canada and Brazil.\u003C\/p\u003E\n\n\u003Cp\u003ENotably, Travelers offers a rate pricing program known as IntelliDrive, which determines your rates by assessing your safe driving behavior via a smartphone app. Enrolling in IntelliDrive can potentially reduce your annual insurance rates by as much as 20% if you exhibit good driving habits.\u003C\/p\u003E\n\n\u003Cp\u003E\u003C\/div\u003E\n","padding":"normal"}

List of the largest car insurance companies by state

State Farm is the largest insurer in our list, taking the top spot in 33 states and the District of Columbia. After State Farm, Geico was most frequently the largest insurer, taking the biggest market share in 10 states. Progressive was the largest car insurance carrier in seven states, and MAPFRE in just one.

To learn more about the largest car insurance companies in your state, click on the relevant link in the list below.

Largest auto insurance companies in each state

State
Largest insurer
AlabamaState Farm
AlaskaState Farm
ArizonaGeico
ArkansasState Farm
CaliforniaState Farm
Show All Rows


Big vs. small insurance companies

The trade-off between large insurance companies and small ones typically involves giving up competitive rates for an improved customer experience.

  • When using a small insurance company for your auto insurance, you'll likely communicate exclusively with one insurance agent.
  • While you might lose a personal connection when selecting a major insurer, the largest companies tend to have more financial stability. In fact, these carriers underwrite and pay out billions of dollars per year, and still often leverage their resources to offer drivers lower insurance rates.

You may also need to worry about solvency if you choose a policy from a smaller company due to lack of financial strength. If you manage to find a small insurer with a base level of financial stability that you're comfortable with, consider how much you're willing to pay for better service. If you value great service, you might prefer a small insurance company.

Below, we compared the 10 largest auto insurance companies according to their financial strength rating by AM Best.

Rating
Insurers
A++/SuperiorState Farm, Geico, USAA
A+/SuperiorProgressive, Allstate, Nationwide
A/ExcellentLiberty Mutual, Farmers, Travelers, American Family

Another consideration is availability, coverage options and discounts. While you're likely to have a more personalized experience with a small insurance company, it may not have the availability, benefits and discounts that large insurance companies do. And the major or biggest insurance companies often have representatives that are still available to speak with policyholders 24/7.


Mutual vs. stock insurance companies

The main difference between mutual and stock insurance companies is the ownership configuration — stock insurance companies are privately- or publicly-owned companies that offer voting rights to stockholders. Mutual insurance companies, however, are owned by their policyholders.

Since stockholders benefit from the stock's appreciation, people argue that the short-term interests of investors don't always align with the long-term interest of the company. Many feel that mutual insurance companies are better because the policyholders' interests align well with what's best for the company, specifically lowering insurance rates and paying out dividends to attract more customers.

Below, we list the top 10 largest auto insurance companies by type, excluding USAA, which is an insurance exchange for military personnel.

Mutual insurance companies
Stock insurance companies
State FarmGeico
Liberty MutualAllstate
American FamilyProgressive
NationwideFarmers
Travelers


Choosing the right insurer for you

Among all the large auto insurance companies out there, it's still important to pick a carrier that's best for your unique situation. We always recommend comparing quotes from multiple insurers in order to find cheap rates that fit your personal driver profile and history.

The type of auto insurance policy you choose — whether minimum or full coverage — will affect your quote, so it helps to have a general idea of which coverages you'd like before getting one.

  • Minimum-coverage car insurance is specified by the minimum auto insurance requirements in your state.
  • Full-coverage car insurance adds comprehensive and collision coverage to your policy in order to protect you against physical damage to your vehicle.

We typically suggest all drivers consider purchasing full-coverage car insurance, particularly if their vehicle is worth more than $3,000.

A quick and simple way to compare multiple car insurance quotes is to use our tool. You can start by entering your ZIP code below.

ValuePenguin works with trusted national carriers to help you find your best rate quickly, simply and easily — for free.

As an alternative, many insurers offer their own free online quote tools you can access directly through their websites, or you might consider working with an insurance agent to help you with the process.

Expert Insights to Help You Make Smarter Financial Decisions

ValuePenguin has curated an exclusive panel of professionals, spanning various areas of expertise, to help dissect difficult subjects and empower you to make smarter financial decisions. Read on for more auto insurance insights. 

  1. Flo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?
  2. How does market share ownership impact a customer's perception of quality of service?
  3. Generally speaking, what is the impact on customer satisfaction after an acquisition and/or consolidation?
  4. Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

headshot of expert
  • Deanne Butchey, PhD
  • Teaching Professor, Finance
  • Read Answer

headshot of expert
  • Dr. Craig Seidelson
  • Assistant Professor Operations and Supply Chain Management
  • Read Answer

headshot of expert
  • Christopher Marquette, PhD
  • Assistant Professor of Finance
  • Read Answer

headshot of expert
  • Marc Kalan
  • Assistant Professor of Professional Practice
  • Read Answer

headshot of expert
  • David C. Marlett, PhD, CPCU
  • Managing Director, Brantley Risk and Insurance Center
  • Read Answer
headshot of expert
  • Dr. Dena H. Hale
  • Assistant Professor of Sales and Marketing
  • Read Answer

headshot of expert
  • Steven L. Savino
  • Assistant Dean of Lehigh Business Graduate Programs
  • Read Answer

headshot of expert
  • Prachi Gala
  • Assistant Professor of Marketing
  • Read Answer

headshot of expert
  • Jaclyn Stevenson
  • Director of Marketing and Communications
  • Read Answer

The commentary provided by these industry experts represent their viewpoints and opinions alone.

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How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?\u003C\/li\u003E\n \u003Cli class=\"ListOrdered--list-item\"\u003EHow does market share ownership impact a customer's perception of quality of service?\u003C\/li\u003E\n \u003Cli class=\"ListOrdered--list-item\"\u003EGenerally speaking, what is the impact on customer satisfaction after an acquisition and\/or consolidation?\u003C\/li\u003E\n \u003Cli class=\"ListOrdered--list-item\"\u003ELiving in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?\u003C\/li\u003E\n \u003C\/ol\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\u003C\/p\u003E\n\n\u003Chr\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"full pad-none align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"third pad-half align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv 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style=\"width: 80px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_80\/v1\/expert-advice-headshots_sfuxjr\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_80\/v1\/expert-advice-headshots_sfuxjr\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_80\/v1\/expert-advice-headshots_sfuxjr 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_80\/v1\/expert-advice-headshots_sfuxjr 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--plain\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EMarc Kalan\u003C\/strong\u003E\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n Assistant Professor of Professional Practice\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Read Answer\" href=\"#expert-marc-kalan\"\u003ERead Answer\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeVisibility--show-small\"\u003E\u003C\/p\u003E\n\n\u003Chr\u003E\n\n\u003Cp\u003E\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"third pad-half align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImage--root left\" \u003E\n \u003Cdiv class=\"ShortcodeImage--image-container \"\u003E\n \u003Cimg alt=\"headshot of expert\" class=\"ShortcodeImage--image lazyload\" style=\"width: 80px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_80\/v1\/david-marlett_wopjqh\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_80\/v1\/david-marlett_wopjqh\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_80\/v1\/david-marlett_wopjqh 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_80\/v1\/david-marlett_wopjqh 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--plain\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EDavid C. Marlett, PhD, CPCU\u003C\/strong\u003E\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n Managing Director, Brantley Risk and Insurance Center\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Read Answer\" href=\"#expert-david-c-marlett\"\u003ERead Answer\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"third pad-half align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImage--root left\" \u003E\n \u003Cdiv class=\"ShortcodeImage--image-container \"\u003E\n \u003Cimg alt=\"headshot of expert\" class=\"ShortcodeImage--image lazyload\" style=\"width: 80px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_80\/v1\/dena-hale_fnkdy0\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_80\/v1\/dena-hale_fnkdy0\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_80\/v1\/dena-hale_fnkdy0 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_80\/v1\/dena-hale_fnkdy0 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--plain\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EDr. Dena H. Hale\u003C\/strong\u003E\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n Assistant Professor of Sales and Marketing\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Read Answer\" href=\"#expert-dena-hale\"\u003ERead Answer\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Chr\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"third pad-half align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImage--root left\" \u003E\n \u003Cdiv class=\"ShortcodeImage--image-container \"\u003E\n \u003Cimg alt=\"headshot of expert\" class=\"ShortcodeImage--image lazyload\" style=\"width: 80px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_80\/v1\/expert-advice-savino-stevens_xyyzuw\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_80\/v1\/expert-advice-savino-stevens_xyyzuw\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_80\/v1\/expert-advice-savino-stevens_xyyzuw 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_80\/v1\/expert-advice-savino-stevens_xyyzuw 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--plain\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003ESteven L. Savino\u003C\/strong\u003E\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n Assistant Dean of Lehigh Business Graduate Programs\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Read Answer\" href=\"#expert-steven-savino\"\u003ERead Answer\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeVisibility--show-small\"\u003E\u003C\/p\u003E\n\n\u003Chr\u003E\n\n\u003Cp\u003E\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"third pad-half align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImage--root left\" \u003E\n \u003Cdiv class=\"ShortcodeImage--image-container \"\u003E\n \u003Cimg alt=\"headshot of expert\" class=\"ShortcodeImage--image lazyload\" style=\"width: 80px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_80\/v1\/prachi-gala_bklcn2\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_80\/v1\/prachi-gala_bklcn2\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_80\/v1\/prachi-gala_bklcn2 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_80\/v1\/prachi-gala_bklcn2 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--plain\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EPrachi Gala\u003C\/strong\u003E\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n Assistant Professor of Marketing\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Read Answer\" href=\"#expert-prachi-gala\"\u003ERead Answer\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeVisibility--show-small\"\u003E\u003C\/p\u003E\n\n\u003Chr\u003E\n\n\u003Cp\u003E\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"third pad-half align-left clearfix\"\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImage--root left\" \u003E\n \u003Cdiv class=\"ShortcodeImage--image-container \"\u003E\n \u003Cimg alt=\"headshot of expert\" class=\"ShortcodeImage--image lazyload\" style=\"width: 80px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_80\/v1\/expert-advice-headshots_sfuxjr\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_80\/v1\/expert-advice-headshots_sfuxjr\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_80\/v1\/expert-advice-headshots_sfuxjr 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_80\/v1\/expert-advice-headshots_sfuxjr 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--plain\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EJaclyn Stevenson\u003C\/strong\u003E\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n Director of Marketing and Communications\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Read Answer\" href=\"#expert-jaclyn-stevenson\"\u003ERead Answer\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeDisclaimer--root ShortcodeDisclaimer--root \"\u003E\n \u003Cdiv class=\"ContextualDisclaimer--root\"\u003E\n \u003Cp class=\"ContextualDisclaimer--copy\"\u003E\n \u003Cp\u003EThe commentary provided by these industry experts represent their viewpoints and opinions alone.\u003C\/p\u003E\n\n \n \u003C\/p\u003E\n\u003C\/div\u003E\n\n\u003C\/div\u003E\n\n","padding":"double"}
headshot of expert

Deanne Butchey, PhD

Teaching Professor, Finance; Faculty Advisor, Phoenician Investment Fund (PIF); Financial Management Association (FMA) @ FIU

Flo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?

It depends on the industry. In financial services, trust and the ability to connect with the company is critical in instilling confidence in the minds of the consumers. Smaller companies that do not have an easily identifiable spokesperson may not enjoy as widespread acceptance or trust. Eventually, word of mouth and personalized experiences with the smaller company may ease these concerns.

How does market share ownership impact a customer's perception of quality of service?

In scientific research, it is a known fact that a small percentage of influencers who may be viewed as "informed individuals" have the potential to lead others down a specific path. Many times when a company has a significant market share, consumers believe that existing clientele have superior information about the quality of the good or service. It is for this reason that positive online reviews are highly sought after.

Generally speaking, what is the impact on customer satisfaction after an acquisition and/or consolidation?

It depends how effectively the integration or consolidation takes place. If it is seamless and customers view the expansion of services offered as being beneficial to them, they will be highly satisfied. On the other hand, if there are hiccups or disruptions in service in the early stages of integration, the acquired or consolidated company will lose its original customers.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

I don’t believe it is necessary to maintain local agents, but it is important that the person on the other line or on the chat is culturally sensitive. Seemingly personalized experiences, whether it is through a live agent or artificial intelligence is invaluable.

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImage--root left\" \u003E\n \u003Cdiv class=\"ShortcodeImage--image-container \"\u003E\n \u003Cimg alt=\"headshot of expert\" class=\"ShortcodeImage--image lazyload\" style=\"width: 60px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/deanne-butchey_zwclbi\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_60\/v1\/deanne-butchey_zwclbi\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/deanne-butchey_zwclbi 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_60\/v1\/deanne-butchey_zwclbi 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Ch3 id=\"expert-deanne-butchey\"\u003EDeanne Butchey, PhD\u003C\/h3\u003E\n\n\u003Cp\u003ETeaching Professor, Finance; Faculty Advisor, Phoenician Investment Fund (PIF); Financial Management Association (FMA) @ FIU\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeToggle--root ShortcodeToggle--article \" id=\u003E\n \u003Cbutton class=\"ShortcodeToggle--toggle\" onclick=\"this.parentNode.classList.toggle('ShortcodeToggle--open');\"\u003E\u003Cp class=\"ShortcodeToggle--label\"\u003ESee their advice\u003C\/p\u003E\u003C\/button\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents-wrapper\"\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents\"\u003E\n \u003C\/p\u003E\n\n\u003Ch4\u003EFlo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?\u003C\/h4\u003E\n\n\u003Cp\u003EIt depends on the industry. In financial services, trust and the ability to connect with the company is critical in instilling confidence in the minds of the consumers. Smaller companies that do not have an easily identifiable spokesperson may not enjoy as widespread acceptance or trust. Eventually, word of mouth and personalized experiences with the smaller company may ease these concerns.\u003C\/p\u003E\n\n\u003Ch4\u003EHow does market share ownership impact a customer's perception of quality of service?\u003C\/h4\u003E\n\n\u003Cp\u003EIn scientific research, it is a known fact that a small percentage of influencers who may be viewed as \"informed individuals\" have the potential to lead others down a specific path. Many times when a company has a significant market share, consumers believe that existing clientele have superior information about the quality of the good or service. It is for this reason that positive online reviews are highly sought after.\u003C\/p\u003E\n\n\u003Ch4\u003EGenerally speaking, what is the impact on customer satisfaction after an acquisition and\/or consolidation?\u003C\/h4\u003E\n\n\u003Cp\u003EIt depends how effectively the integration or consolidation takes place. If it is seamless and customers view the expansion of services offered as being beneficial to them, they will be highly satisfied. On the other hand, if there are hiccups or disruptions in service in the early stages of integration, the acquired or consolidated company will lose its original customers.\u003C\/p\u003E\n\n\u003Ch4\u003ELiving in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?\u003C\/h4\u003E\n\n\u003Cp\u003EI don\u2019t believe it is necessary to maintain local agents, but it is important that the person on the other line or on the chat is culturally sensitive. Seemingly personalized experiences, whether it is through a live agent or artificial intelligence is invaluable.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeAlign--root ShortcodeAlign--horizontal-center\"\u003E\n \u003Cdiv class=\"ShortcodeAlign--container\"\u003E \n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root Button--root Button--primary Button--auto-width\" title=\"Back to all experts\" href=\"#expertadvice\"\u003EBack to all experts\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n","padding":"double"}
headshot of expert

Dr. Craig Seidelson

Assistant Professor Operations and Supply Chain Management, University of Indianapolis

Flo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?

Companies in the U.S. spent nearly $250 billion on ads in 2020. When it comes to financing national marketing campaigns, large companies have a distinct advantage over their smaller counterparts. This spending advantage becomes a business advantage when ads create sufficient brand loyalty that consumers are willing to pay a price premium for more recognizable products and services.

How should drivers balance risk management and affordability when it comes to car insurance?

It's widely accepted among consumers that market share is a key indicator of competitiveness. It follows that companies with a commanding market share are perceived as offering superior products or services. Consumers are willing to pay more for perceived value. With higher profits comes opportunities to further expand market share. As the cycle repeats, the connection between market share and perceived quality is reinforced.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

In our digital world, U.S. consumers spent a whopping $860 billion online in 2020. Is it still necessary for companies to offer personalized sales staff? On the one hand, consumers clearly value the safety, convenience, low prices and wide selection available online. This is particularly true when amounts being spent are well within one's discretionary budget. On the other hand, over half of online shoppers spend less than 15 seconds on a website. When purchases are for substantial amounts of money, selling requires much more engagement than a typical website can offer. Salespeople have the skills necessary to help would-be buyers with their purchase decisions.

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImage--root left\" \u003E\n \u003Cdiv class=\"ShortcodeImage--image-container \"\u003E\n \u003Cimg alt=\"headshot of expert\" class=\"ShortcodeImage--image lazyload\" style=\"width: 60px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/craig-seidelson_rjse2e\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_60\/v1\/craig-seidelson_rjse2e\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/craig-seidelson_rjse2e 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_60\/v1\/craig-seidelson_rjse2e 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Ch3 id=\"expert-craig-seidelson\"\u003EDr. Craig Seidelson\u003C\/h3\u003E\n\n\u003Cp\u003EAssistant Professor Operations and Supply Chain Management, University of Indianapolis\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeToggle--root ShortcodeToggle--article \" id=\u003E\n \u003Cbutton class=\"ShortcodeToggle--toggle\" onclick=\"this.parentNode.classList.toggle('ShortcodeToggle--open');\"\u003E\u003Cp class=\"ShortcodeToggle--label\"\u003ESee their advice\u003C\/p\u003E\u003C\/button\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents-wrapper\"\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents\"\u003E\n \u003C\/p\u003E\n\n\u003Ch4\u003EFlo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?\u003C\/h4\u003E\n\n\u003Cp\u003ECompanies in the U.S. spent nearly $250 billion on ads in 2020. When it comes to financing national marketing campaigns, large companies have a distinct advantage over their smaller counterparts. This spending advantage becomes a business advantage when ads create sufficient brand loyalty that consumers are willing to pay a price premium for more recognizable products and services.\u003C\/p\u003E\n\n\u003Ch4\u003EHow should drivers balance risk management and affordability when it comes to car insurance?\u003C\/h4\u003E\n\n\u003Cp\u003EIt's widely accepted among consumers that market share is a key indicator of competitiveness. It follows that companies with a commanding market share are perceived as offering superior products or services. Consumers are willing to pay more for perceived value. With higher profits comes opportunities to further expand market share. As the cycle repeats, the connection between market share and perceived quality is reinforced.\u003C\/p\u003E\n\n\u003Ch3\u003ELiving in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?\u003C\/h3\u003E\n\n\u003Cp\u003EIn our digital world, U.S. consumers spent a whopping $860 billion online in 2020. Is it still necessary for companies to offer personalized sales staff? On the one hand, consumers clearly value the safety, convenience, low prices and wide selection available online. This is particularly true when amounts being spent are well within one's discretionary budget. On the other hand, over half of online shoppers spend less than 15 seconds on a website. When purchases are for substantial amounts of money, selling requires much more engagement than a typical website can offer. Salespeople have the skills necessary to help would-be buyers with their purchase decisions.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeAlign--root ShortcodeAlign--horizontal-center\"\u003E\n \u003Cdiv class=\"ShortcodeAlign--container\"\u003E \n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root Button--root Button--primary Button--auto-width\" title=\"Back to all experts\" href=\"#expertadvice\"\u003EBack to all experts\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n","padding":"double"}
headshot of expert

Christopher J. Marquette, PhD

Assistant Professor of Finance, Tabor School of Finance, Millikin University; Managing Editor, Journal for Business Advancement

Flo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?

The insurance industry is naturally a very segmented one. There are approximately 6,000 firms active in the industry, but the largest 10 firms command over 50% of the premium revenue. So we have an industry that has a few very large firms, such as Progressive and State Farm, and numerous small firms. The objective for success for the smaller companies should be not to compete with the large firms but rather to find a niche market and develop superior expertise in that market.

The insurance industry is bifurcated into two segments. There are several names used to describe these two segments: standard/specialty, admitted/non-admitted, standard/excess and surplus. I will use the terms standard and specialty. The standard market is characterized by large masses of insureds who have risks that are very similar in nature. This market includes the personal lines of homeowners, automobile, life and health insurance. These are the insurers that the public is familiar with because they advertise to the public heavily with catchy slogans and endearing spokespeople and mascots.

The standard market comprises approximately 90% of the total market’s premiums. The specialty market takes the remaining 10% but is vastly more diverse. Examples of risks insured in the specialty market include commercial property, trucking, shipping, product liability, worker’s compensation and professional liability (e.g., doctors, lawyers, building contractors). This is only a small sample of the types of risks insured in this market that offer ample opportunities for profitability for smaller companies.

Even homeowner’s insurance, for example, provides niche opportunities. Standard market insurers like Progressive and State Farm will only insure single family residences (up to four units) where the owner/insured lives year round. They will not insure a vacant house, a seasonal residence or a rental property. Individuals seeking insurance in these situations must go to a specialty insurer.

The specialty market includes a large subdivision where companies don’t even exist! The Lloyd’s insurance marketplace is characterized by syndicates that are just loose affiliations of investors looking to insure risks. Although companies can participate in these syndicates along with individuals, the syndicate itself has a lifespan of only three years before it disbands. The risks insured in this market tend to be very distinct and diverse. Lloyd’s syndicates have, in the past, insured risks as unique and divergent as Bruce Springsteen’s voice, Tina Turner’s legs and the Loch Ness Monster!

There are also opportunities in reinsurance — insuring the insurers! So we can see that the insurance industry is a vast, diverse world with a wide variety of opportunities and markets. The strength of one company’s advertising campaign should not adversely affect a smaller player’s profitability if that player is smart and nimble.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

I would say that insurance companies could reduce their offering of localized agents, but not eliminate them altogether. There is still a large swath of the population that doesn’t have good, reliable internet service. In addition, there are numerous individuals who have good internet service but still are not comfortable with e-commerce.

Insurance is complicated and sometimes confusing, and quite often, potential customers will want to speak directly to a person to explain policies before they are confident it is the right thing for them. Personal service is also an important feature for some customers as they build a relation with a particular insurer, and somebody the customer has met and knows can attain greater trust than an anonymous call center person.

I don’t see the personal touch in insurance contracting going away soon and think localized offices will continue to be an important, if diminished, facet of policy distribution and service for the foreseeable future.

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImage--root left\" \u003E\n \u003Cdiv class=\"ShortcodeImage--image-container \"\u003E\n \u003Cimg alt=\"headshot of expert\" class=\"ShortcodeImage--image lazyload\" style=\"width: 60px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/christopher-marquette_zacncd\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_60\/v1\/christopher-marquette_zacncd\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/christopher-marquette_zacncd 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_60\/v1\/christopher-marquette_zacncd 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Ch3 id=\"expert-christopher-j-marquette\"\u003EChristopher J. Marquette, PhD\u003C\/h3\u003E\n\n\u003Cp\u003EAssistant Professor of Finance, Tabor School of Finance, Millikin University; Managing Editor, \u003Cem\u003EJournal for Business Advancement\u003C\/em\u003E\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeToggle--root ShortcodeToggle--article \" id=\u003E\n \u003Cbutton class=\"ShortcodeToggle--toggle\" onclick=\"this.parentNode.classList.toggle('ShortcodeToggle--open');\"\u003E\u003Cp class=\"ShortcodeToggle--label\"\u003ESee their advice\u003C\/p\u003E\u003C\/button\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents-wrapper\"\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents\"\u003E\n \u003C\/p\u003E\n\n\u003Ch4\u003EFlo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?\u003C\/h4\u003E\n\n\u003Cp\u003EThe insurance industry is naturally a very segmented one. There are approximately 6,000 firms active in the industry, but the largest 10 firms command over 50% of the premium revenue. So we have an industry that has a few very large firms, such as Progressive and State Farm, and numerous small firms. The objective for success for the smaller companies should be not to compete with the large firms but rather to find a niche market and develop superior expertise in that market.\u003C\/p\u003E\n\n\u003Cp\u003EThe insurance industry is bifurcated into two segments. There are several names used to describe these two segments: standard\/specialty, admitted\/non-admitted, standard\/excess and surplus. I will use the terms standard and specialty. The standard market is characterized by large masses of insureds who have risks that are very similar in nature. This market includes the personal lines of homeowners, automobile, life and health insurance. These are the insurers that the public is familiar with because they advertise to the public heavily with catchy slogans and endearing spokespeople and mascots.\u003C\/p\u003E\n\n\u003Cp\u003EThe standard market comprises approximately 90% of the total market\u2019s premiums. The specialty market takes the remaining 10% but is vastly more diverse. Examples of risks insured in the specialty market include commercial property, trucking, shipping, product liability, worker\u2019s compensation and professional liability (e.g., doctors, lawyers, building contractors). This is only a small sample of the types of risks insured in this market that offer ample opportunities for profitability for smaller companies.\u003C\/p\u003E\n\n\u003Cp\u003EEven homeowner\u2019s insurance, for example, provides niche opportunities. Standard market insurers like Progressive and State Farm will only insure single family residences (up to four units) where the owner\/insured lives year round. They will not insure a vacant house, a seasonal residence or a rental property. Individuals seeking insurance in these situations must go to a specialty insurer.\u003C\/p\u003E\n\n\u003Cp\u003EThe specialty market includes a large subdivision where companies don\u2019t even exist! The Lloyd\u2019s insurance marketplace is characterized by syndicates that are just loose affiliations of investors looking to insure risks. Although companies can participate in these syndicates along with individuals, the syndicate itself has a lifespan of only three years before it disbands. The risks insured in this market tend to be very distinct and diverse. Lloyd\u2019s syndicates have, in the past, insured risks as unique and divergent as Bruce Springsteen\u2019s voice, Tina Turner\u2019s legs and the Loch Ness Monster!\u003C\/p\u003E\n\n\u003Cp\u003EThere are also opportunities in reinsurance \u2014 insuring the insurers! So we can see that the insurance industry is a vast, diverse world with a wide variety of opportunities and markets. The strength of one company\u2019s advertising campaign should not adversely affect a smaller player\u2019s profitability if that player is smart and nimble.\u003C\/p\u003E\n\n\u003Ch4\u003ELiving in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?\u003C\/h4\u003E\n\n\u003Cp\u003EI would say that insurance companies could reduce their offering of localized agents, but not eliminate them altogether. There is still a large swath of the population that doesn\u2019t have good, reliable internet service. In addition, there are numerous individuals who have good internet service but still are not comfortable with e-commerce.\u003C\/p\u003E\n\n\u003Cp\u003EInsurance is complicated and sometimes confusing, and quite often, potential customers will want to speak directly to a person to explain policies before they are confident it is the right thing for them. Personal service is also an important feature for some customers as they build a relation with a particular insurer, and somebody the customer has met and knows can attain greater trust than an anonymous call center person.\u003C\/p\u003E\n\n\u003Cp\u003EI don\u2019t see the personal touch in insurance contracting going away soon and think localized offices will continue to be an important, if diminished, facet of policy distribution and service for the foreseeable future.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeAlign--root ShortcodeAlign--horizontal-center\"\u003E\n \u003Cdiv class=\"ShortcodeAlign--container\"\u003E \n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root Button--root Button--primary Button--auto-width\" title=\"Back to all experts\" href=\"#expertadvice\"\u003EBack to all experts\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E","padding":"double"}
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David C. Marlett, PhD, CPCU

Managing Director, Brantley Risk and Insurance Center

Flo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?

Larger auto insurers spend enormous sums on advertising to create a positive image and encourage applications. Smaller insurers are unable to match the advertising but offer a similar product and often at competitive prices. Consumers should feel comfortable buying from less-well-known auto insurers because they are regulated by the state Department of Insurance.

Their finances are in order, forms and rates approved, in compliance with licensing requirements and backed by the state guaranty fund just like the larger insurers. Just to be on the safe side, visit your state's Department of Insurance website or call if you have questions about a particular insurer. The regulator can confirm whether the insurer is licensed in the state and may provide information on the number of complaints they have received (a complaint ratio provides the number of complaints divided by premium volume).

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

Having a local agent to offer a personalized experience is certainly helpful for Gen Xers and baby boomers, but likely less so for the younger consumers who are more comfortable in the digital space. This last year has pushed many of the traditional local agents to improve their virtual interactions, but many consumers still prefer to visit or call with questions.

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImage--root left\" \u003E\n \u003Cdiv class=\"ShortcodeImage--image-container \"\u003E\n \u003Cimg alt=\"headshot of expert\" class=\"ShortcodeImage--image lazyload\" style=\"width: 60px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/david-marlett_wopjqh\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_60\/v1\/david-marlett_wopjqh\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/david-marlett_wopjqh 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_60\/v1\/david-marlett_wopjqh 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Ch3 id=\"expert-david-c-marlett\"\u003EDavid C. Marlett, PhD, CPCU\u003C\/h3\u003E\n\n\u003Cp\u003EManaging Director, Brantley Risk and Insurance Center\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeToggle--root ShortcodeToggle--article \" id=\u003E\n \u003Cbutton class=\"ShortcodeToggle--toggle\" onclick=\"this.parentNode.classList.toggle('ShortcodeToggle--open');\"\u003E\u003Cp class=\"ShortcodeToggle--label\"\u003ESee their advice\u003C\/p\u003E\u003C\/button\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents-wrapper\"\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents\"\u003E\n \u003C\/p\u003E\n\n\u003Ch4\u003EFlo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?\u003C\/h4\u003E\n\n\u003Cp\u003ELarger auto insurers spend enormous sums on advertising to create a positive image and encourage applications. Smaller insurers are unable to match the advertising but offer a similar product and often at competitive prices. Consumers should feel comfortable buying from less-well-known auto insurers because they are regulated by the state Department of Insurance.\u003C\/p\u003E\n\n\u003Cp\u003ETheir finances are in order, forms and rates approved, in compliance with licensing requirements and backed by the state guaranty fund just like the larger insurers. Just to be on the safe side, visit your state's Department of Insurance website or call if you have questions about a particular insurer. The regulator can confirm whether the insurer is licensed in the state and may provide information on the number of complaints they have received (a complaint ratio provides the number of complaints divided by premium volume).\u003C\/p\u003E\n\n\u003Ch4\u003ELiving in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?\u003C\/h4\u003E\n\n\u003Cp\u003EHaving a local agent to offer a personalized experience is certainly helpful for Gen Xers and baby boomers, but likely less so for the younger consumers who are more comfortable in the digital space. This last year has pushed many of the traditional local agents to improve their virtual interactions, but many consumers still prefer to visit or call with questions.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeAlign--root ShortcodeAlign--horizontal-center\"\u003E\n \u003Cdiv class=\"ShortcodeAlign--container\"\u003E \n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root Button--root Button--primary Button--auto-width\" title=\"Back to all experts\" href=\"#expertadvice\"\u003EBack to all experts\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E","padding":"double"}
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Marc Kalan

Assistant Professor of Professional Practice, Department of Marketing

Flo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?

Many consumers ​feel comfort from dealing with a "perceived familiar" expert, or in this circumstance, the familiar personality (albeit a "company-created expert"). This is a perceived strength that larger companies with high levels of awareness carry as an advantage that smaller entities in the same industry rarely can match. In categories where there is a constant flow of potential new users, this is a clear competitive advantage.

How does market share ownership impact a customer's perception of quality of service?

As members of a consumer-driven population, we are drawn to those already perceived as "winners." In today's competitive environment, success on any parameter — and "quality of service" is certainly one of those parameters — is a key consumer desire. Therefore, the higher the market share, the higher the impression of the "better" competitor as measured by the size of its customer base in comparison with the rest of the market, and this is measured by its share of the market.

Generally speaking, what is the impact on customer satisfaction after an acquisition and/or consolidation?

While companies desire to raise the level of consumer satisfaction, it is my understanding that cuts in budgets to create the "savings" anticipated by consolidations of functions never reach those levels, and resulting customer satisfaction tends to the opposite.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

Historically, most insurance has been sold and serviced via local agents, and those local relationships were a key component in that process. As the digital revolution continues to impact our lives, more and more "traditional" processes are being replaced with digital solutions. This is occurring across more and more industries traditionally handled via face-to-face interactions including banking, automobile and home purchases, and virtually all consumer industries. Insurance companies, if they are to maintain and grow in the future, will most likely need to adopt to this new paradigm or [risk seeing] a revolution of new competitors as has occurred in so many consumer-focused businesses.

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImage--root left\" \u003E\n \u003Cdiv class=\"ShortcodeImage--image-container \"\u003E\n \u003Cimg alt=\"headshot of expert\" class=\"ShortcodeImage--image lazyload\" style=\"width: 60px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/expert-advice-headshots_sfuxjr\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_60\/v1\/expert-advice-headshots_sfuxjr\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/expert-advice-headshots_sfuxjr 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_60\/v1\/expert-advice-headshots_sfuxjr 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Ch3 id=\"expert-marc-kalan\"\u003EMarc Kalan\u003C\/h3\u003E\n\n\u003Cp\u003EAssistant Professor of Professional Practice, Department of Marketing\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeToggle--root ShortcodeToggle--article \" id=\u003E\n \u003Cbutton class=\"ShortcodeToggle--toggle\" onclick=\"this.parentNode.classList.toggle('ShortcodeToggle--open');\"\u003E\u003Cp class=\"ShortcodeToggle--label\"\u003ESee their advice\u003C\/p\u003E\u003C\/button\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents-wrapper\"\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents\"\u003E\n \u003C\/p\u003E\n\n\u003Ch4\u003EFlo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?\u003C\/h4\u003E\n\n\u003Cp\u003EMany consumers \u200bfeel comfort from dealing with a \"perceived familiar\" expert, or in this circumstance, the familiar personality (albeit a \"company-created expert\"). This is a perceived strength that larger companies with high levels of awareness carry as an advantage that smaller entities in the same industry rarely can match. In categories where there is a constant flow of potential new users, this is a clear competitive advantage.\u003C\/p\u003E\n\n\u003Ch4\u003EHow does market share ownership impact a customer's perception of quality of service?\u003C\/h4\u003E\n\n\u003Cp\u003EAs members of a consumer-driven population, we are drawn to those already perceived as \"winners.\" In today's competitive environment, success on any parameter \u2014 and \"quality of service\" is certainly one of those parameters \u2014 is a key consumer desire. Therefore, the higher the market share, the higher the impression of the \"better\" competitor as measured by the size of its customer base in comparison with the rest of the market, and this is measured by its share of the market.\u003C\/p\u003E\n\n\u003Ch4\u003EGenerally speaking, what is the impact on customer satisfaction after an acquisition and\/or consolidation?\u003C\/h4\u003E\n\n\u003Cp\u003EWhile companies desire to raise the level of consumer satisfaction, it is my understanding that cuts in budgets to create the \"savings\" anticipated by consolidations of functions never reach those levels, and resulting customer satisfaction tends to the opposite.\u003C\/p\u003E\n\n\u003Ch4\u003ELiving in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?\u003C\/h4\u003E\n\n\u003Cp\u003EHistorically, most insurance has been sold and serviced via local agents, and those local relationships were a key component in that process. As the digital revolution continues to impact our lives, more and more \"traditional\" processes are being replaced with digital solutions. \nThis is occurring across more and more industries traditionally handled via face-to-face interactions including banking, automobile and home purchases, and virtually all consumer industries. Insurance companies, if they are to maintain and grow in the future, will most likely need to adopt to this new paradigm or [risk seeing] a revolution of new competitors as has occurred in so many consumer-focused businesses.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeAlign--root ShortcodeAlign--horizontal-center\"\u003E\n \u003Cdiv class=\"ShortcodeAlign--container\"\u003E \n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root Button--root Button--primary Button--auto-width\" title=\"Back to all experts\" href=\"#expertadvice\"\u003EBack to all experts\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E","padding":"double"}
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Dr. Dena H. Hale

Assistant Professor of Sales and Marketing, Centurion Sales Program, Stetson University

Flo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?

It comes down to familiarity and branding. Insurance is a credence- or experience-attribute service. This means that it is difficult for a consumer to really know if a service provider (i.e., an insurance company) provides quality service or not. If you have an accident and you are satisfied with the way the firm handled your claim, you assume you received quality service, but you can’t really know for certain.

It is very difficult to determine prior to an experience if an insurance provider delivers value. This is where branding comes in for firms like Progressive and State Farm. We don’t see an insurance provider; we see Flo and Jake. Flo and Jake are our "friends," and we value what our friends say. We "know" the value is better because our trusted friend said so.

The use of persona branding (and integrated marketing communications) not only allows familiarity for consumers; it also creates less price sensitivity for consumers. Many consumers are able and willing to pay a slightly higher premium for the assurance of quality service delivery if and when the insurance coverage becomes needed.

How does market share ownership impact a customer's perception of quality of service?

It's about perceptions. It can be summed up in one statement: "If a firm is larger with greater market share, more people must trust the firm, so I can trust it too."

Generally speaking, what is the impact on customer satisfaction after an acquisition and/or consolidation?

Generally speaking, it can be two-fold. It may spark consumer "shopping" for other insurance options, or it could solidify satisfaction. It comes down to the reputation of the acquired/consolidated firm.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

That is a very interesting question. A balance is needed, allowing customers to interact online for basic questions and searches; however, agents are critical for establishing relationships, suggesting appropriate service offerings and speaking with clients after an accident.

Insurance literacy, or the ability to fully comprehend the insurance market, varies among customers. Currently, consumers are not as insurance-savvy as needed to have fully automated processes. Looking to the future, this could shift. The increased use of artificial intelligence (that is, avatars that interact with customers online like a real-life agent would) may change the need for localized agents in the future.

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImage--root left\" \u003E\n \u003Cdiv class=\"ShortcodeImage--image-container \"\u003E\n \u003Cimg alt=\"headshot of expert\" class=\"ShortcodeImage--image lazyload\" style=\"width: 60px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/dena-hale_fnkdy0\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_60\/v1\/dena-hale_fnkdy0\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/dena-hale_fnkdy0 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_60\/v1\/dena-hale_fnkdy0 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Ch3 id=\"expert-dena-hale\"\u003EDr. Dena H. Hale\u003C\/h3\u003E\n\n\u003Cp\u003EAssistant Professor of Sales and Marketing, Centurion Sales Program, Stetson University\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeToggle--root ShortcodeToggle--article \" id=\u003E\n \u003Cbutton class=\"ShortcodeToggle--toggle\" onclick=\"this.parentNode.classList.toggle('ShortcodeToggle--open');\"\u003E\u003Cp class=\"ShortcodeToggle--label\"\u003ESee their advice\u003C\/p\u003E\u003C\/button\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents-wrapper\"\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents\"\u003E\n \u003C\/p\u003E\n\n\u003Ch4\u003EFlo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?\u003C\/h4\u003E\n\n\u003Cp\u003EIt comes down to familiarity and branding. Insurance is a credence- or experience-attribute service. This means that it is difficult for a consumer to really know if a service provider (i.e., an insurance company) provides quality service or not. If you have an accident and you are satisfied with the way the firm handled your claim, you assume you received quality service, but you can\u2019t really know for certain.\u003C\/p\u003E\n\n\u003Cp\u003EIt is very difficult to determine prior to an experience if an insurance provider delivers value. This is where branding comes in for firms like Progressive and State Farm. We don\u2019t see an insurance provider; we see Flo and Jake. Flo and Jake are our \"friends,\" and we value what our friends say. We \"know\" the value is better because our trusted friend said so.\u003C\/p\u003E\n\n\u003Cp\u003EThe use of persona branding (and integrated marketing communications) not only allows familiarity for consumers; it also creates less price sensitivity for consumers. Many consumers are able and willing to pay a slightly higher premium for the assurance of quality service delivery if and when the insurance coverage becomes needed.\u003C\/p\u003E\n\n\u003Ch4\u003EHow does market share ownership impact a customer's perception of quality of service?\u003C\/h4\u003E\n\n\u003Cp\u003EIt's about perceptions. It can be summed up in one statement: \"If a firm is larger with greater market share, more people must trust the firm, so I can trust it too.\"\u003C\/p\u003E\n\n\u003Ch4\u003EGenerally speaking, what is the impact on customer satisfaction after an acquisition and\/or consolidation?\u003C\/h4\u003E\n\n\u003Cp\u003EGenerally speaking, it can be two-fold. It may spark consumer \"shopping\" for other insurance options, or it could solidify satisfaction. It comes down to the reputation of the acquired\/consolidated firm.\u003C\/p\u003E\n\n\u003Ch4\u003ELiving in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?\u003C\/h4\u003E\n\n\u003Cp\u003EThat is a very interesting question. A balance is needed, allowing customers to interact online for basic questions and searches; however, agents are critical for establishing relationships, suggesting appropriate service offerings and speaking with clients after an accident.\u003C\/p\u003E\n\n\u003Cp\u003EInsurance literacy, or the ability to fully comprehend the insurance market, varies among customers. Currently, consumers are not as insurance-savvy as needed to have fully automated processes. Looking to the future, this could shift. The increased use of artificial intelligence (that is, avatars that interact with customers online like a real-life agent would) may change the need for localized agents in the future.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeAlign--root ShortcodeAlign--horizontal-center\"\u003E\n \u003Cdiv class=\"ShortcodeAlign--container\"\u003E \n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root Button--root Button--primary Button--auto-width\" title=\"Back to all experts\" href=\"#expertadvice\"\u003EBack to all experts\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E","padding":"double"}
headshot of expert

Steven L. Savino

Assistant Dean of Lehigh Business Graduate Programs, Professor of Practice, Marketing Department, Lehigh University College of Business

Flo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?

The perceived value of larger companies can have an impact on smaller companies primarily in the areas of satisfaction guarantees and customer service. In other words, larger companies who are able to invest more dollars in advertising messaging, like with Progressive and "Flo" or State Farm and "Jake," are able to reinforce their value propositions in ways that prompt consumers to perceive a higher likelihood of realizing brand satisfaction. Well-known brands become assets that achieve reliable, ongoing sales volume resulting from the perception that risk in choosing such brands is low.

How does market share ownership impact a customer's perception of quality of service?

Higher market share is the result of the combination of four factors. Stronger brand preference combined with greater resistance to compromise (more willingness to search for the brand) drives market share by creating "pull." Likewise, greater availability and in-market visibility combine to create "push." This combination of push-pull factors creates market share, and higher market share enables the firm to gain leverage over channel partners, thus resulting in even greater availability and in-market visibility.

This cycle is important in the context of understanding that a high market share means your brand has greater in-market visibility. The result is a higher likelihood that your brand will be chosen. This trial combined with meeting or exceeding customer expectations leads to repeat purchases and ultimately high brand loyalty rates. So, high market share triggers the notion that the brand must be of high quality, otherwise why would so many people be willing to purchase the product?

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

On the surface, it might appear that insurance company providers need localized agents less due to digital interface solutions. In other words, consumers can transact more easily and with less anxiety within digital and web-based platforms than through high-pressure sales presentations. However, with that said, consumers still need a level of customization when it comes to purchasing insurance products.

As a result, insurance providers utilizing the human touch can more readily address consumer needs and realize higher sales closing rates. Insurance is considered a high-involvement product, meaning there is greater willingness to gather information and search for alternative solutions. Localized agents and personal attention in terms of customer experience can go a long way in getting the undecided prospect off the fence and engaging them in the transaction.

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImage--root left\" \u003E\n \u003Cdiv class=\"ShortcodeImage--image-container \"\u003E\n \u003Cimg alt=\"headshot of expert\" class=\"ShortcodeImage--image lazyload\" style=\"width: 60px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/expert-advice-savino-stevens_xyyzuw\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_60\/v1\/expert-advice-savino-stevens_xyyzuw\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/expert-advice-savino-stevens_xyyzuw 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_60\/v1\/expert-advice-savino-stevens_xyyzuw 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Ch3 id=\"expert-steven-savino\"\u003ESteven L. Savino\u003C\/h3\u003E\n\n\u003Cp\u003EAssistant Dean of Lehigh Business Graduate Programs, Professor of Practice, Marketing Department, Lehigh University College of Business\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeToggle--root ShortcodeToggle--article \" id=\u003E\n \u003Cbutton class=\"ShortcodeToggle--toggle\" onclick=\"this.parentNode.classList.toggle('ShortcodeToggle--open');\"\u003E\u003Cp class=\"ShortcodeToggle--label\"\u003ESee their advice\u003C\/p\u003E\u003C\/button\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents-wrapper\"\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents\"\u003E\n \u003C\/p\u003E\n\n\u003Ch4\u003EFlo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?\u003C\/h4\u003E\n\n\u003Cp\u003EThe perceived value of larger companies can have an impact on smaller companies primarily in the areas of satisfaction guarantees and customer service. In other words, larger companies who are able to invest more dollars in advertising messaging, like with Progressive and \"Flo\" or State Farm and \"Jake,\" are able to reinforce their value propositions in ways that prompt consumers to perceive a higher likelihood of realizing brand satisfaction. Well-known brands become assets that achieve reliable, ongoing sales volume resulting from the perception that risk in choosing such brands is low.\u003C\/p\u003E\n\n\u003Ch4\u003EHow does market share ownership impact a customer's perception of quality of service?\u003C\/h4\u003E\n\n\u003Cp\u003EHigher market share is the result of the combination of four factors. Stronger brand preference combined with greater resistance to compromise (more willingness to search for the brand) drives market share by creating \"pull.\" Likewise, greater availability and in-market visibility combine to create \"push.\" This combination of push-pull factors creates market share, and higher market share enables the firm to gain leverage over channel partners, thus resulting in even greater availability and in-market visibility.\u003C\/p\u003E\n\n\u003Cp\u003EThis cycle is important in the context of understanding that a high market share means your brand has greater in-market visibility. The result is a higher likelihood that your brand will be chosen. This trial combined with meeting or exceeding customer expectations leads to repeat purchases and ultimately high brand loyalty rates. So, high market share triggers the notion that the brand must be of high quality, otherwise why would so many people be willing to purchase the product?\u003C\/p\u003E\n\n\u003Ch4\u003ELiving in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?\u003C\/h4\u003E\n\n\u003Cp\u003EOn the surface, it might appear that insurance company providers need localized agents less due to digital interface solutions. In other words, consumers can transact more easily and with less anxiety within digital and web-based platforms than through high-pressure sales presentations. However, with that said, consumers still need a level of customization when it comes to purchasing insurance products.\u003C\/p\u003E\n\n\u003Cp\u003EAs a result, insurance providers utilizing the human touch can more readily address consumer needs and realize higher sales closing rates. Insurance is considered a high-involvement product, meaning there is greater willingness to gather information and search for alternative solutions. Localized agents and personal attention in terms of customer experience can go a long way in getting the undecided prospect off the fence and engaging them in the transaction.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeAlign--root ShortcodeAlign--horizontal-center\"\u003E\n \u003Cdiv class=\"ShortcodeAlign--container\"\u003E \n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root Button--root Button--primary Button--auto-width\" title=\"Back to all experts\" href=\"#expertadvice\"\u003EBack to all experts\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E","padding":"double"}
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Prachi Gala

Assistant Professor of Marketing, Kennesaw State University

Q: Flo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?

The characters and the perceived value play two different roles.

I will try to address the perceived value. Larger companies will have higher value. It’s a no-brainer. So the problem for smaller companies here is that the larger companies are always top-of-mind for the consumer and hold a bigger market share. So it has a huge negative impact on the smaller startups. But, at the same time, these new entrants have multiple benefits: Federally supported funds, getting something new to the market, flexibility in adapting to customer needs as they are not yet fully grown, freshly done market research, etc.

These benefits can be fully supportive of new entrants to increase their perceived value as they can serve the customer in the best way possible while making their entry. A recent example of a new entrant is an app called Avail, which rents out your car while you’re out of town. The app provides customers with free car washes and free parking while they are traveling. Who would not see value in that?

How does market share ownership impact a customer's perception of quality of service?

The more users, the more diversified the opinions. You can’t please everyone who is your customer. Opinions about market share ownership, like monopolies, are usually diversified.

For example:

  • Facebook – everyone is on it. And three people may criticize the company and its usage of data and leakage when they are on it. But do they have a choice? All the customers are still on Facebook, despite their dislike of the platform’s market share.
  • Apple – most Americans own at least one Apple device. They are all very happy with their products. When Apple started selling air pods and different charging cords, they were certainly criticized for it, but do the customers have a choice? They can switch to Android. But will they?

These two examples explain the fact that market share ownership does get love and hatred together, but due to the huge market share, customers don’t have a choice and are wary of switching to new products, regardless of a high dislike sometimes.

Generally speaking, what is the impact on customer satisfaction after an acquisition and/or consolidation?

The customers most times are not aware of the acquisitions taking place between companies. For example, last week, Redbox merged with Seaport Global. It’s not very attention seeking. Certainly if there are bigger acquisitions, covered well by the media, like the merging of WarnerMedia and Discovery, then there is awareness. But, impact? Not so much.

Would you stop watching Discovery because the company merged with WarnerMedia? If this merger had an impact on subscription rates, then it may be a different story. Some merger decisions may eventually impact consumers, but it is those decisions, and not the news of the mergers themselves, that impact customer satisfaction.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

The question here should be "how," not "if." Because there is no other way but to have that personalized experience. Digitizing means people are naturally getting isolated and working in their own dens, and thus, loneliness is kicking in. In such circumstances, having the best digital service is great. The customer will certainly like it, regardless of digital service. But if there is a live agent, unconsciously, they will feel more welcomed, more engaged and part of the company community.

Today, giving a personalized experience is what can differentiate you from the competition. It is a must. Simple example: If you are moving to Michigan and an assistant from a mortgage company is talking to you online, but you don’t know their whereabouts, your confidence with the company may not be the same as if the same agent told you they are a local of the area you are moving to. That gives you the personalized feeling — a bond — and a feeling of belongingness to the community.

{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImage--root left\" \u003E\n \u003Cdiv class=\"ShortcodeImage--image-container \"\u003E\n \u003Cimg alt=\"headshot of expert\" class=\"ShortcodeImage--image lazyload\" style=\"width: 60px;\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/prachi-gala_bklcn2\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_60\/v1\/prachi-gala_bklcn2\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_60\/v1\/prachi-gala_bklcn2 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_60\/v1\/prachi-gala_bklcn2 2x\"\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Ch3 id=\"expert-prachi-gala\"\u003EPrachi Gala\u003C\/h3\u003E\n\n\u003Cp\u003EAssistant Professor of Marketing, Kennesaw State University\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeToggle--root ShortcodeToggle--article \" id=\u003E\n \u003Cbutton class=\"ShortcodeToggle--toggle\" onclick=\"this.parentNode.classList.toggle('ShortcodeToggle--open');\"\u003E\u003Cp class=\"ShortcodeToggle--label\"\u003ESee their advice\u003C\/p\u003E\u003C\/button\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents-wrapper\"\u003E\n \u003Cdiv class=\"ShortcodeToggle--contents\"\u003E\n \u003C\/p\u003E\n\n\u003Ch4\u003EQ: Flo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?\u003C\/h4\u003E\n\n\u003Cp\u003EThe characters and the perceived value play two different roles.\u003C\/p\u003E\n\n\u003Cp\u003EI will try to address the perceived value. Larger companies will have higher value. It\u2019s a no-brainer. So the problem for smaller companies here is that the larger companies are always top-of-mind for the consumer and hold a bigger market share. So it has a huge negative impact on the smaller startups. But, at the same time, these new entrants have multiple benefits: Federally supported funds, getting something new to the market, flexibility in adapting to customer needs as they are not yet fully grown, freshly done market research, etc.\u003C\/p\u003E\n\n\u003Cp\u003EThese benefits can be fully supportive of new entrants to increase their perceived value as they can serve the customer in the best way possible while making their entry. A recent example of a new entrant is an app called Avail, which rents out your car while you\u2019re out of town. The app provides customers with free car washes and free parking while they are traveling. Who would not see value in that?\u003C\/p\u003E\n\n\u003Ch4\u003EHow does market share ownership impact a customer's perception of quality of service?\u003C\/h4\u003E\n\n\u003Cp\u003EThe more users, the more diversified the opinions. You can\u2019t please everyone who is your customer. Opinions about market share ownership, like monopolies, are usually diversified.\u003C\/p\u003E\n\n\u003Cp\u003EFor example:\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeList--root \"\u003E\n\n \u003Cdiv class=\"ShortcodeList--content ShortcodeList--content-margin\"\u003E\n \u003Cdiv class=\"ShortcodeList--column\"\u003E\n \u003Cul class=\"ListUnordered--root ListUnordered--bullet\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n Facebook \u2013 everyone is on it. And three people may criticize the company and its usage of data and leakage when they are on it. But do they have a choice? All the customers are still on Facebook, despite their dislike of the platform\u2019s market share.\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n Apple \u2013 most Americans own at least one Apple device. They are all very happy with their products. When Apple started selling air pods and different charging cords, they were certainly criticized for it, but do the customers have a choice? They can switch to Android. But will they?\n \u003C\/li\u003E\n \u003C\/ul\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\n\u003C\/p\u003E\n\n\u003Cp\u003EThese two examples explain the fact that market share ownership does get love and hatred together, but due to the huge market share, customers don\u2019t have a choice and are wary of switching to new products, regardless of a high dislike sometimes.\u003C\/p\u003E\n\n\u003Ch4\u003EGenerally speaking, what is the impact on customer satisfaction after an acquisition and\/or consolidation?\u003C\/h4\u003E\n\n\u003Cp\u003EThe customers most times are not aware of the acquisitions taking place between companies. For example, last week, Redbox merged with Seaport Global. It\u2019s not very attention seeking. Certainly if there are bigger acquisitions, covered well by the media, like the merging of WarnerMedia and Discovery, then there is awareness. But, impact? Not so much.\u003C\/p\u003E\n\n\u003Cp\u003EWould you stop watching Discovery because the company merged with WarnerMedia? If this merger had an impact on subscription rates, then it may be a different story. Some merger decisions may eventually impact consumers, but it is those decisions, and not the news of the mergers themselves, that impact customer satisfaction.\u003C\/p\u003E\n\n\u003Ch4\u003ELiving in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?\u003C\/h4\u003E\n\n\u003Cp\u003EThe question here should be \"how,\" not \"if.\" Because there is no other way but to have that personalized experience. Digitizing means people are naturally getting isolated and working in their own dens, and thus, loneliness is kicking in. In such circumstances, having the best digital service is great. The customer will certainly like it, regardless of digital service. But if there is a live agent, unconsciously, they will feel more welcomed, more engaged and part of the company community.\u003C\/p\u003E\n\n\u003Cp\u003EToday, giving a personalized experience is what can differentiate you from the competition. It is a must. Simple example: If you are moving to Michigan and an assistant from a mortgage company is talking to you online, but you don\u2019t know their whereabouts, your confidence with the company may not be the same as if the same agent told you they are a local of the area you are moving to. That gives you the personalized feeling \u2014 a bond \u2014 and a feeling of belongingness to the community.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeAlign--root ShortcodeAlign--horizontal-center\"\u003E\n \u003Cdiv class=\"ShortcodeAlign--container\"\u003E \n \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root Button--root Button--primary Button--auto-width\" title=\"Back to all experts\" href=\"#expertadvice\"\u003EBack to all experts\u003C\/a\u003E\u003C\/span\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E","padding":"double"}
headshot of expert

Jaclyn Stevenson

Director of Marketing and Communications, Columbia-Greene Community College, the State University of New York

Flo from Progressive and Jake from State Farm are household names by now. How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?

In my opinion, the marketing personas, so to speak, that brands create are a move toward making the company seem more approachable, relatable and down to earth — all qualities that small and successful companies possess inherently. Flo, Jake and other spokes-characters have proven to be effective tools to promote products and services and to bring in new customers.

That said, retention is key. If the service provided once a new customer signs on is not up to their standards, many consumers will pivot — almost automatically — to doing business with a smaller company.

This poses a challenge as well as an opportunity for those smaller outfits, who must position themselves as visible to consumers with creative marketing of their own. This could include a larger-than-life character (who is also a real leader in the company, as opposed to fiction), but above all should focus on the points of service customers can expect to receive with low or no failure for an extended period of time.

How does market share ownership impact a customer's perception of quality of service?

As a small community college serving a rural area, we struggle with the balance of advertising spread. Our budget is smaller than some neighboring colleges that can pursue larger and longer campaigns, and that affects the perception of the institution — area residents sometimes assume the larger colleges are more well-heeled, accessible or program-rich. However, wide-reaching campaigns in our region can also be read as over-exposure or over-spending. We pay great attention to our demographic and geographic targets to help combat this — delivering marketing materials to core audiences as often as possible — and also working with community partners to create unique, attention-getting "splashes" throughout the year that demand attention, but don’t suggest grandiosity. Some examples include "carvertising" on delivery-service cars, QR-code powered brochures to pair digital and print pieces and sponsorships of events that are reflective of our community’s flair, such as art festivals, agricultural fairs and theater productions.

Generally speaking, what is the impact on customer satisfaction after an acquisition and/or consolidation?

Name changes or announcements of company changes of any kind often foster anxiety among consumers, who may adopt a newly cynical view of the company in question or worry their service will change or decline in quality. The impetus is on the company to double down on its customer service and pay attention to any developing trends of dissatisfaction among its customer base.

Living in this digital revolution, is it necessary for companies, like insurance providers, to maintain localized agents and personalized experiences?

While it’s not intrinsically necessary, local access to service is always a plus and an important aspect of service to promote. Personalized experiences should always be part of marketing and customer outreach, whether delivered from afar or from across the street. This digital world, especially post-pandemic, is one that has created a need among many consumers for real, human experiences. The good news is digital resources make personalization easier than ever before — but sometimes, all that’s needed is a personal phone call, too.

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How does the perceived value of larger companies impact the smaller, yet potentially just as competitive, ones?\u003C\/h4\u003E\n\n\u003Cp\u003EIn my opinion, the marketing personas, so to speak, that brands create are a move toward making the company seem more approachable, relatable and down to earth \u2014 all qualities that small and successful companies possess inherently. Flo, Jake and other spokes-characters have proven to be effective tools to promote products and services and to bring in new customers.\u003C\/p\u003E\n\n\u003Cp\u003EThat said, retention is key. If the service provided once a new customer signs on is not up to their standards, many consumers will pivot \u2014 almost automatically \u2014 to doing business with a smaller company.\u003C\/p\u003E\n\n\u003Cp\u003EThis poses a challenge as well as an opportunity for those smaller outfits, who must position themselves as visible to consumers with creative marketing of their own. This could include a larger-than-life character (who is also a real leader in the company, as opposed to fiction), but above all should focus on the points of service customers can expect to receive with low or no failure for an extended period of time.\u003C\/p\u003E\n\n\u003Ch4\u003EHow does market share ownership impact a customer's perception of quality of service?\u003C\/h4\u003E\n\n\u003Cp\u003EAs a small community college serving a rural area, we struggle with the balance of advertising spread. Our budget is smaller than some neighboring colleges that can pursue larger and longer campaigns, and that affects the perception of the institution \u2014 area residents sometimes assume the larger colleges are more well-heeled, accessible or program-rich. However, wide-reaching campaigns in our region can also be read as over-exposure or over-spending. We pay great attention to our demographic and geographic targets to help combat this \u2014 delivering marketing materials to core audiences as often as possible \u2014 and also working with community partners to create unique, attention-getting \"splashes\" throughout the year that demand attention, but don\u2019t suggest grandiosity. Some examples include \"carvertising\" on delivery-service cars, QR-code powered brochures to pair digital and print pieces and sponsorships of events that are reflective of our community\u2019s flair, such as art festivals, agricultural fairs and theater productions.\u003C\/p\u003E\n\n\u003Ch4\u003EGenerally speaking, what is the impact on customer satisfaction after an acquisition and\/or consolidation?\u003C\/h4\u003E\n\n\u003Cp\u003EName changes or announcements of company changes of any kind often foster anxiety among consumers, who may adopt a newly cynical view of the company in question or worry their service will change or decline in quality. 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Frequently asked questions

What are the largest auto insurance companies?

The 10 largest auto insurers in the United States are State Farm, Progressive, Geico, Allstate, USAA, Liberty Mutual, Farmers Insurance, Travelers, Nationwide and American Family Insurance. Together, they sell just under 70% of the total amount of car insurance sold in the United States.

Do larger insurance companies have better prices?

There's no guarantee that a bigger insurer will have a higher or lower price than a smaller insurer, especially because every insurer evaluates risk differently. The only way to find the best rate for you is to get quotes from a variety of insurance companies.

Should I go with a big or small auto insurance company?

There are affordable, high-quality insurance companies of all sizes. But larger, national insurance companies often have a wider variety of coverage and discount options, plus high-quality websites and mobile apps. Meanwhile, a smaller local insurer might be more likely to offer expertise and benefits that appeal to residents of your area.

Methodology

Market share and direct written premium information for our list of private auto insurance companies was gathered from the National Association of Insurance Commissioners (NAIC) and S&P Global, a financial data resource for the insurance industry.

We collected minimum-coverage auto insurance quotes across 50 states and the District of Columbia. Our base driver was a 30-year-old male who drove a 2015 Honda Civic EX, and quotes were drawn from all available ZIP codes in each state.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.