Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001 and has an undergraduate degree from Manhattan College in ...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Oct 25, 2021

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Car Insurance Q&A: “Who is the leading car insurance company?”

When shopping for car insurance, you’ll come across a wide range of choices and will likely find a variety of insurance rates for the same coverage. Many auto insurance companies say that they can save you money, but who really offers the best rates and quality service?

It’s always a good idea to shop around before you actually buy insurance for your car. Prices vary widely between insurers, so it’s smart to compare quotes from multiple auto insurance providers. When checking the customer satisfaction ratings and financial ratings of the largest auto insurance companies, most of these names are recognizable due to their national television advertising campaigns.

State Farm has been the leading car insurance company in the United States since 1942, according to their own website. It’s the number one auto insurance company in terms of market share percentage and premiums written.

The company was founded in 1922 by a retired farmer named George J. Mecherle, and initially concentrated on meeting the car insurance needs of Illinois farmers.

Just 20 years later, it was the largest auto insurer in the United States and has held that distinction ever since. It currently employs over 60,000 people and has nearly 19,000 agents. State Farm operates as a mutual insurance company and it’s owned by its policyholders. The company offers the cheapest rates for drivers in most parts of the US.

Nowadays, about one in every five cars on the road is insured by State Farm.

That matches up with the most recent III data (2007) regarding insurance premium written by the top 10 car insurers in the United States, listed below.

leading insurer

As you can see, State Farm grabbed 17.5% market share in 2007, with number two Allstate far behind with just 11.3% and Progressive in third with 7.2%.

And if you own a TV, you’ve probably heard that State Farm insures more drivers than Progressive and GEICO combined.

Over $15 spent on private passenger auto insurance premiums in the US is paid to State Farm.

Translation: You’re probably paying too much for an auto insurance policy if you’re insured through State Farm.

As one of the largest car insurance companies, State Farm offers over 100 insurance products (property and casualty insurance, life and health insurance, annuities and financial services.

Remember, biggest isn’t always best, or cheapest. The top rated car insurance company isn’t even in the top 10.

The largest auto insurance companies offer different auto insurance rates, customer claims experience and features.

So be sure to shop around by obtaining insurance quotes online and/or speaking with multiple independent insurance agents.