Auto insurance is one of the important and critical financial services today. According to automobile research firm IHS Automotive, the total number of automobiles in the U.S is estimated at 253 million, while the average age of vehicles on the road is about 11.4 years in the U.S. This reflects the huge market potential for the auto insurance industry, as insurance must be bought for each vehicle on a yearly basis.
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In the US, auto insurance generally covers the risk financial liability of the owner in case of damage or accident. Types of auto insurance include Liability Insurance which covers both vehicle damage as well as medical expenses in case of injury to the owner during accidents, and Collision, which compensates only the damage and repair of vehicles. The Comprehensive Coverage policy provides protection in all situations such as accidents, weather damage, theft or even a collision with an animal. Another type which is not as costly as Comprehensive Coverage is Personal Injury Protection, which covers the medical bills of the owner.
Insurance is one of the largest financial service industries globally. It offers a wide range of personalized products according to the needs of diverse segments of customers. They can be ranked based on factors such as market capitalization, revenue, profit, etc. but the most relevant parameter is their asset base. According to a J.D. Power Study, auto insurance companies in the U.S are ranked based on five parameters of customer satisfaction: interaction, price, policy offerings, billing & payment, and claims.
We have taken an average of the regional rankings of all nationwide insurers to arrive at our list of the “Top 10 Highest Rated Auto Insurance Companies in America”. Check out the list!
10. Allstate
Founded in 1931, The Allstate Corporation, a holding of the Allstate Corp (NYSE:ALL), is America’s largest publicly held personal lines property and casualty insurer. Allstate Corp (NYSE:ALL) was listed on the New York Stock Exchange in 1993 and its trading symbol is ‘ALL’. The company’s total assets at the end of 2014 were $108.5 billion. Allstate Corp (NYSE:ALL) focuses on providing employment for women and minorities as out 75,000 professionals working with the company; 56% are women and 33% are minorities.
9. Progressive
The Progressive Group of Insurance Companies, owned by Progressive Corp (NYSE:PGR), started its operations in 1937. It was the first company to introduce reduced rates for low-risk drivers. Progressive started web-based comparison tool for auto insurance rates. True to its name Progressive offers Name Your Price® car insurance shopping option where a potential customer can make a counter offer.
8. The Hartford
Founded in 1810, more than 200 years ago, Hartford Financial Services Group Inc (NYSE:HIG) provides property and casualty insurance, group benefits and mutual funds to a large customer base across America. The company is trading on the NYSE under the symbol ‘HIG’. Hartford Financial Services Group Inc (NYSE:HIG) is direct auto and home insurance writer for strong 37 million AARP’s members for last three decades.
7. American Family
American Family Insurance started its business more than 80 years back .The company provides a range of insurance and retirement products across 19 states in the US. American Family Insurance’s asset base is about $19.4 billion, while policyholders’ equity is $6.5 billion.
6. GEICO
Government Employees Insurance Company is the second largest private passenger auto insurer in the US. In 1996, GEICO became a wholly owned subsidiary of Berkshire Hathaway Inc. (NYSE:BRK.A), managed by the legendary investor Warren Buffet. With an asset base of more than$32 billion, GEICO also has highest ratings in the industry for its financial strength.
5. State Farm
State Farm, founded by a farmer in 1922, is the biggest auto insurance company in the US. The company enjoys the trust of more than 44 million auto policyholders across the USA. It was ranked 41 on the Fortune 500 list of largest companies. State Farm has more than 65,000 employees and a nationwide network of 18,000 agents.
4. Auto-Owners Insurance
Founded in 1916, Auto-Owners Insurance is headquartered at Delta Township in Michigan. It is a Fortune 500 company and ranks 16th as property/casualty insurance company in terms of written premium. It has a nationwide network of more than 6,300 agencies and 37,000 agents to sell its policies.
3. Auto Club of Southern California Insurance Group
Founded in 1900, the Automobile Club of Southern California the Southern California affiliate of the federation of motor clubs, American Automobile Association (AAA). It is one of the largest insurance company in the US. Non-profit body along with auto insurance offers services like first aid, towing, and emergency road service to members.
2. Erie Insurance
Erie Insurance founded in 1925, is the 12th largest auto insurer in the US based on direct premium written. It is a Fortune 500 company with more than 4.5 million policies across 12 states in the US. In 1995, Erie Indemnity Company (NASDAQ:ERIE) was listed on the NASDAQ under the trading symbol “ERIE”. The company operates via more than 10,000 agents working with 2,000 independent agencies.
1. United Services Automobile Association (USAA)
Started its operations in 1922, USAA focuses on insurance to veterans and current military personnel and their families. Headquartered in Texas, the fully integrated financial services company has more than 10.7 million members. USAA has more than $130 billion worth of assets. USAA enjoys one of the highest customer satisfaction ratings across all locations it operates.
