10 Largest Auto Insurance Companies (April 2021)

10 Largest Auto Insurance Companies (April 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. Below we list all 10 auto insurers and recommend which might be best for you.

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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%
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{"backgroundColor":"white","content":"\u003C\/p\u003E\n\n\u003Cp\u003EWhen looking at the rankings of the \u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"top auto insurance companies\" href=\"https:\/\/www.valuepenguin.com\/best-auto-insurance\"\u003Etop auto insurance companies\u003C\/a\u003E\u003C\/span\u003E in the United States, most of the names are recognizable due to their national television advertising campaigns.\u003C\/p\u003E\n\n\u003Cp\u003EThe 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.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ShortcodeImageResponsive--root\"\u003E\n \u003Cfigure class=\"ShortcodeImage--root\"\u003E\n \u003Cpicture class=\"ShortcodeImage--picture\"\u003E\n \u003Csource\n media=\"(max-width: 1032.75px)\"\n data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-company-mobile_stg8kc 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-company-mobile_stg8kc 2x\"\n\/\u003E\n \u003Cimg alt=\"Market Share of the Largest Auto Insurance Companies.\" class=\"lazyload\" data-src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-company-desktop_rzw0w6\" src=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,e_blur:1000,f_auto,h_1600,q_1,w_1600\/v1\/auto-company-desktop_rzw0w6\" data-srcset=\"http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_1.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-company-desktop_rzw0w6 1x, http:\/\/res.cloudinary.com\/value-penguin\/image\/upload\/c_limit,dpr_2.0,f_auto,h_1600,q_auto,w_1600\/v1\/auto-company-desktop_rzw0w6 2x\"\u003E\n \u003C\/picture\u003E\n \u003C\/figure\u003E\n\u003C\/div\u003E\n\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ReactComponent--root\"\u003E\n \u003Cdiv class=\"js-react-component-rendered js-react-component-QuoteWizardQuoteForm\" data-component-name=\"QuoteWizardQuoteForm\"\u003E\n \u003Cdiv class=\"QuoteWizardQuoteForm--root QuoteWizardQuoteForm--dropshadow\"\u003E\u003Cdiv class=\"QuoteWizardQuoteForm--form-container\"\u003E\u003Ch3 class=\"QuoteWizardQuoteForm--title\"\u003EFind Cheap Auto Insurance Quotes in Your Area\u003C\/h3\u003E\u003Cform id=\"QuoteWizardQuoteForm--1000\" class=\"QuoteWizardQuoteForm--form\" method=\"GET\" action=\"https:\/\/quotes.valuepenguin.com\" target=\"_blank\"\u003E\u003Cdiv class=\"QuoteWizardQuoteForm--hidden\"\u003E\u003Cinput type=\"hidden\" name=\"c\" value=\"C20049\"\/\u003E\u003Cinput type=\"hidden\" name=\"product\" value=\"auto\"\/\u003E\u003Cinput type=\"hidden\" name=\"key\" value=\"_largest-auto-insurance-companies\"\/\u003E\u003Cinput 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No hidden costs.\",\"vendor\":\"vp\"}\u003C\/script\u003E\n\n\u003C\/div\u003E\u003C\/p\u003E\n\n\u003Cp\u003EYet 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.\u003C\/p\u003E\n\n\u003Cp\u003EBelow 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.\u003C\/p\u003E\n\n\u003Cp\u003E\u003Cdiv class=\"ReactComponent--root\"\u003E\n \u003Cdiv class=\"js-react-component-rendered js-react-component-ComparisonTable\" data-component-name=\"ComparisonTable\"\u003E\n \u003Cdiv class=\"ComparisonTableRoot-sc-jl9psb bgqgcQ\"\u003E\u003Cdiv class=\"StyledRootWrapper-sc-3qeib4 jYHfZo\"\u003E\u003Cdiv class=\"StyledTableWrapper-sc-5nmmx9 fesmOM\"\u003E\u003Cdiv class=\"StyledTableOverflowWrapper-sc-hixhp9 gVbnK\"\u003E\u003Ctable class=\"StyledTable-sc-ujzn9t jVpJxq\"\u003E\u003Cthead class=\"StyledHeaderRow-sc-1m1b8dn cBFLrt\"\u003E\u003Ctr\u003E\u003Cth width=\"\" colSpan=\"1\" class=\"StyledHeaderCell-sc-nsptsd gkalnJ\"\u003E\u003Cdiv class=\"StyledColumnHeaderWrapper-sc-12xyb2r gPTwhA\"\u003E\u003Cspan\u003ERank\u003C\/span\u003E\u003C\/div\u003E\u003C\/th\u003E\u003Cth width=\"\" colSpan=\"1\" class=\"StyledHeaderCell-sc-nsptsd gkalnJ\"\u003E\u003Cdiv class=\"StyledColumnHeaderWrapper-sc-12xyb2r gPTwhA\"\u003E\u003Cspan\u003EAuto insurance company\u003C\/span\u003E\u003C\/div\u003E\u003C\/th\u003E\u003Cth width=\"\" colSpan=\"1\" class=\"StyledHeaderCell-sc-nsptsd gkalnJ\"\u003E\u003Cdiv class=\"StyledColumnHeaderWrapper-sc-12xyb2r glLrYA\"\u003E\u003Cspan\u003EPremiums written ($bn)\u003C\/span\u003E\u003C\/div\u003E\u003C\/th\u003E\u003Cth width=\"\" colSpan=\"1\" class=\"StyledHeaderCell-sc-nsptsd gkalnJ\"\u003E\u003Cdiv class=\"StyledColumnHeaderWrapper-sc-12xyb2r glLrYA\"\u003E\u003Cspan\u003EMarket share\u003C\/span\u003E\u003C\/div\u003E\u003C\/th\u003E\u003C\/tr\u003E\u003C\/thead\u003E\u003Ctbody class=\"StyledBody-sc-14y8oc0 dcdMVT\"\u003E\u003Ctr\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E1\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"State Farm\" href=\"#state-farm\"\u003EState Farm\u003C\/a\u003E\u003C\/span\u003E\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E$41.1\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E16%\u003C\/td\u003E\u003C\/tr\u003E\u003Ctr\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E2\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Geico\" href=\"#geico\"\u003EGeico\u003C\/a\u003E\u003C\/span\u003E\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E$35.2\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E13%\u003C\/td\u003E\u003C\/tr\u003E\u003Ctr\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E3\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Progressive\" href=\"#progressive\"\u003EProgressive\u003C\/a\u003E\u003C\/span\u003E\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E$32.3\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E12%\u003C\/td\u003E\u003C\/tr\u003E\u003Ctr\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E4\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Allstate\" href=\"#allstate\"\u003EAllstate\u003C\/a\u003E\u003C\/span\u003E\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E$23.8\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E9%\u003C\/td\u003E\u003C\/tr\u003E\u003Ctr\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E5\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"USAA\" href=\"#usaa\"\u003EUSAA\u003C\/a\u003E\u003C\/span\u003E\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E$15.2\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E6%\u003C\/td\u003E\u003C\/tr\u003E\u003Ctr\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E6\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Liberty Mutual\" href=\"#liberty-mutual\"\u003ELiberty Mutual\u003C\/a\u003E\u003C\/span\u003E\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E$12.1\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E5%\u003C\/td\u003E\u003C\/tr\u003E\u003Ctr\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E7\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Farmers\" href=\"#farmers\"\u003EFarmers\u003C\/a\u003E\u003C\/span\u003E\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E$10.7\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E4%\u003C\/td\u003E\u003C\/tr\u003E\u003Ctr\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E8\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Nationwide\" href=\"#nationwide\"\u003ENationwide\u003C\/a\u003E\u003C\/span\u003E\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E$6.6\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E3%\u003C\/td\u003E\u003C\/tr\u003E\u003Ctr\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E9\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"American Family\" href=\"#american-family\"\u003EAmerican Family\u003C\/a\u003E\u003C\/span\u003E\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E$5.8\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E2%\u003C\/td\u003E\u003C\/tr\u003E\u003Ctr\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E10\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee XfhRD\"\u003E\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Travelers\" href=\"#travelers\"\u003ETravelers\u003C\/a\u003E\u003C\/span\u003E\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E$5.5\u003C\/td\u003E\u003Ctd colSpan=\"1\" rowspan=\"1\" width=\"\" class=\"StyledBodyCell-sc-5cu9ee frAYUA\"\u003E2%\u003C\/td\u003E\u003C\/tr\u003E\u003C\/tbody\u003E\u003C\/table\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\u003C\/div\u003E\n \u003C\/div\u003E\n\n\n \u003Cdiv class=\"js-react-component\" data-component-name=\"ComparisonTable\"\u003E{\"alignsHorizontal\":[\"left\",\"left\",\"right\",\"right\",\"right\"],\"alignsVertical\":[],\"columnWidths\":[],\"data\":[[\"Rank\",\"Auto insurance company\",\"Premiums written ($bn)\",\"Market share\"],[\"1\",\"\\u003Cspan\\u003E\\u003Ca class=\\\"ShortcodeLink--root ShortcodeLink--black\\\" title=\\\"State Farm\\\" href=\\\"#state-farm\\\"\\u003EState 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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

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

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.

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

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

6. Liberty Mutual

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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.

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.

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

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.

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.

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
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href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-idaho\"\u003EIdaho\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Illinois Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-illinois\"\u003EIllinois\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Indiana Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-indiana\"\u003EIndiana\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Iowa Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-iowa\"\u003EIowa\u003C\/a\u003E\u003C\/span\u003E","Progressive"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Kansas Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-kansas\"\u003EKansas\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Kentucky Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-kentucky\"\u003EKentucky\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Louisiana Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-louisiana\"\u003ELouisiana\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Maine Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-maine\"\u003EMaine\u003C\/a\u003E\u003C\/span\u003E","Progressive"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Maryland Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-maryland\"\u003EMaryland\u003C\/a\u003E\u003C\/span\u003E","Geico"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Massachusetts Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-massachusetts\"\u003EMassachusetts\u003C\/a\u003E\u003C\/span\u003E","MAPFRE"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Michigan Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-michigan\"\u003EMichigan\u003C\/a\u003E\u003C\/span\u003E","Progressive"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Minnesota Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-minnesota\"\u003EMinnesota\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Mississippi Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-mississippi\"\u003EMississippi\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Missouri Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-missouri\"\u003EMissouri\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Montana Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-montana\"\u003EMontana\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Nebraska Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-nebraska\"\u003ENebraska\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Nevada Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-nevada\"\u003ENevada\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"New Hampshire Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-new-hampshire\"\u003ENew Hampshire\u003C\/a\u003E\u003C\/span\u003E","Geico"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"New Jersey Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-new-jersey\"\u003ENew Jersey\u003C\/a\u003E\u003C\/span\u003E","Geico"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"New Mexico Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-new-mexico\"\u003ENew Mexico\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"New York Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-new-york\"\u003ENew York\u003C\/a\u003E\u003C\/span\u003E","Geico"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"North Carolina Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-north-carolina\"\u003ENorth Carolina\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"North Dakota Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-north-dakota\"\u003ENorth Dakota\u003C\/a\u003E\u003C\/span\u003E","Progressive"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Ohio Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-ohio\"\u003EOhio\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Oklahoma Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-oklahoma\"\u003EOklahoma\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Oregon Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-oregon\"\u003EOregon\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Pennsylvania Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-pennsylvania\"\u003EPennsylvania\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Rhode Island Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-rhode-island\"\u003ERhode Island\u003C\/a\u003E\u003C\/span\u003E","Progressive"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"South Carolina Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-south-carolina\"\u003ESouth Carolina\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"South Dakota Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-south-dakota\"\u003ESouth Dakota\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Tennessee Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-tennessee\"\u003ETennessee\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Texas Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/car-insurance-rates-texas-study\"\u003ETexas\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Utah Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-utah\"\u003EUtah\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Vermont Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-vermont\"\u003EVermont\u003C\/a\u003E\u003C\/span\u003E","Progressive"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Virginia Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-auto-insurance-rates-virginia\"\u003EVirginia\u003C\/a\u003E\u003C\/span\u003E","Geico"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Washington Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-washington\"\u003EWashington\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"West Virginia Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-west-virginia\"\u003EWest Virginia\u003C\/a\u003E\u003C\/span\u003E","State Farm"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Wisconsin Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-wisconsin\"\u003EWisconsin\u003C\/a\u003E\u003C\/span\u003E","Progressive"],["\u003Cspan\u003E\u003Ca class=\"ShortcodeLink--root ShortcodeLink--black\" title=\"Wyoming Car Insurance\" href=\"https:\/\/www.valuepenguin.com\/best-cheap-car-insurance-wyoming\"\u003EWyoming\u003C\/a\u003E\u003C\/span\u003E","State Farm"]],"footnote":"","hasMarginBottom":true,"isExpandable":true,"isSortable":false,"maxWidth":"1215","minWidth":"100%","showSearch":false,"sortColumnIndex":0,"sortDirection":"asc","maxDefaultRows":5}


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
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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

  • American Family
  • Liberty Mutual
  • Nationwide
  • State Farm

Stock insurance companies

  • Allstate
  • Farmers
  • Geico
  • Progressive
  • 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.

Find Cheap Auto Insurance Quotes in Your Area

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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

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

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ListUnordered--plain\"\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n \u003Cstrong\u003EDr. Craig Seidelson\u003C\/strong\u003E\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n Assistant Professor Operations and Supply Chain Management\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-craig-seidelson\"\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\/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_80\/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_80\/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_80\/v1\/christopher-marquette_zacncd 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\u003EChristopher Marquette, PhD\u003C\/strong\u003E\n \u003C\/li\u003E\n \u003Cli class=\"ListUnordered--list-item\"\u003E\n Assistant Professor of Finance\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-christopher-j-marquette\"\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-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\/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\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\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"}
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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\" 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"}
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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\" 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\" 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

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\/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-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\" 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

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\" 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"}

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.

Joe Resendiz

Joe Resendiz is a former investment banking analyst for Goldman Sachs, where he covered public sector and infrastructure financing. During his time on Wall Street, Joe worked closely with the debt capital markets team, which allowed him to gain unique insights into the credit market. Joe is currently a research analyst who covers credit cards and the payments industry. He earned a bachelor’s degree from the University of Texas at Austin, where he majored in finance.

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.