There are a number of companies, such as A.M. Best and Standard & Poor’s, which rate insurance providers on various financial strength aspects in order to help consumers make more informed decisions (insurance company ratings).
If you’re in the market for insurance, you should look for an organization that’s been around a while, with a proven ability to repay claims if you’re involved in an accident.
After all, it’s a lot more likely an insurer will pay your insurance claim if they’re still in business…
Each state also has a department of insurance that monitors the financial status of insurance companies and regulates their practices.
You’ll also want to consider customer service, which might not be reflected in the financial strength of an insurance company, along with price. There are plenty of solid insurance companies to choose from, so you certainly don’t need to overpay for a particular brand name.
When it comes down to it, no one will ask or care who you’re insured with, it’s definitely not something one shows off. I’ve never heard of a conspicuous insurance consumer. But it’s nice to know you’re insured with a reliable insurnecompany.
All that said, here are the the top insurance companies in the United States by market share (not necessarily quality), according to the National Association of Insurance Commissioners (NAIC):
Top 10 Insurance Companies (All lines)
1. State Farm Insurance Group
2. Liberty Mutual Insurance Group (also owns Safeco)
3. Allstate Insurance Group (also owns Esurance)
4. Berkshire Hathaway Group (also owns Geico)
5. Progressive Insurance Group
6. Travelers Insurance Company
7. Chubb Limited Group
8. United Services Automobile Association (USAA)
9. Farmers Insurance Group (also owns 21st Century Insurance)
10. Nationwide Insurance Company
Those that just missed the cut include Hartford, Auto-Owners Insurance, Erie Insurance. After that, you probably won’t recognize many of the names.
Most of the top insurance companies listed above have maintained that real estate for a long time, and probably will always be in the top 10. However, there’s definitely been some shuffling over the past decade. This might coincide with marketing spend, not anything to do with quality of product.
American International Group (AIG) was in the top 10 before the financial crisis struck, and may return once they get their act together, but most haven’t departed the top rankings.
If we consider just auto insurance premiums written, here is how the top 10 is laid out:
Top 10 Insurance Companies (Auto only)
1. State Farm Insurance Group
2. Berkshire Hathaway Group (also owns Geico)
3. Progressive Insurance Group
4. Allstate Insurance Group (also owns Esurance)
5. United Services Automobile Association (USAA)
6. Liberty Mutual Insurance Group (also owns Safeco)
7. Farmers Insurance Group (also owns 21st Century Insurance)
8. Nationwide Insurance Company
9. Travelers Insurance Company
10. Erie Insurance Group