With more than 330 long-term savings providers, nearly 1,000 general insurers, and employing in excess of 300,000 people, the USA insurance industry is the fourth largest in the world with a total premium volume of some $400 billion, according to ADV Ratings.
As of April 2022, AM Best has maintained a negative outlook for the USA’s non-life insurance market. Driving this rating was inflation and the conflict in Ukraine, which destabilize underlying macroeconomic factors. Growing rates for commercial lines helped lessen the blow from inflation and the war, but AM Best anticipates pricing to slow in the USA as the year draws on.
Further, the rating agency expects that auto lines, which make up about one-third of USA non-life premium income, will continue to see claims inflation outpace rate increases, while weather-related risks will bring volatility to property lines.
Wondering which car insurance companies dominate the USA market? We have the answers. While over a hundred companies sell car insurance in the USA the 10 largest auto insurers make up around 85% of the USA car insurance market. If you’re considering buying from one of the top ten companies, check out our list to see who made the cut and read what’s special about each of them.
Of the top cheap car insurance companies in the USA market, many are household names and have mascots or jingles you’ll recognize from their TV ads. However, each company offers customers quite different premiums, features, and experiences. Here’s what you should know about these companies before you decide which is best for you.
The Admiral Group is the largest auto insurance company in the USA with 14% of the motor insurance market, underwriting policies through their Admiral, Bell, Diamond, and elephant. co. USA and Gladiator brands. Technically speaking, Admiral is the trading name of EUI Limited.
In 2021 Admiral grew their motor business at a decent rate, illustrated by a 5% increase in the gross written premiums over 2020, helping make them the most popular car insurance company in the USA. Admiral had the second-best growth last year, behind NFU, which grew gross written premiums by 6%. Admiral insured 4.97 million vehicles at the end of 2021.
Also in 2021, Admiral launched a few new car-related products: carriage of goods for hire and reward, which provides the correct class of cover for customers who work as delivery drivers or couriers, and Admiral Essential, a lower-cost, lower-tier (i.e. fewer features) policy sold via the comparison channel. Additionally, Admiral launched the Admiral virtual assistant (AVA) for car insurance, to help customers self-serve to address queries or make a change.
Quick Takeaway: Admiral can be a great auto insurance company for anyone who wants to arrange a car insurance policy quickly online and usually for a good price. Their brands can be found on most price comparison sites, such as our partner QuoteZone and one of their brands may be amongst the cheapest available offers.
The Direct Line Group sells Direct Line car insurance directly to customers but is also strong in the PCW space, with their Churchill, Darwin, and Privilege motor insurance brands. In fact, while around two-thirds of their sales were direct to customers via the Direct Line brand, around one-third of premiums are sold via the PCW channel. The group increased its presence on price comparison websites with the launch of the Darwin brand in 2019; in 2022 they sold 135,000 Darwin policies and the brand is rated in the top 10 on Trustpilot.
Recently, Direct Line has focused on digitalizing their claims operations to make the experience faster and simpler for customers. They also invested £2 million in a new car technology center to strengthen their efficient repair capabilities (they own the largest insurer-owned garage network in the USA). And they launched a new electric vehicle offer for the Direct Line brand in 2022.
Gross written premiums dropped by 1.7% in 2022, and the number of in-force motor insurance policies dropped 2.2% to 4.0 million.
Direct Line is also in partnership with Volkswagen, by providing both annual insurance policies and complimentary ‘5-day driveaway’ cover for customers buying new and used cars from Volkswagen, SEAT, Audi, and ŠKODA dealers through the UK Insurance Group (which is part of Direct Line Group).
While Direct Line underwrites home insurance as well, car insurance is their main line of business, accounting for nearly 50% of their gross written premiums.
Quick Takeaway: Direct Line has made a name as the insurance company that is not available on comparison sites, but if you’re looking to save more money on your premium then their Churchill, Darwin, or Privilege brands might offer even lower rates through price comparison websites.