Auto Insurance Market Share in the US

In terms of geographical region, North America dominated the global auto insurance market in 2019. It is expected to retain its dominant position during the forecast period owing to the presence of key players and the increase in the number of cars purchased in the region. Asia-Pacific, however, is expected to show significant growth during the forecast period, owing to the increasing trend of auto insurance in Asia. The Asia-Pacific region is projected to grow at the highest rate during the forecast period, at a CAGR of 9.6% during the forecast period.

USAA has the largest market share, accounting for 7.9% of the industry. The company offers competitive premiums to military and veteran customers, and has earned a reputation for excellent customer service. In the 2019 J.D. Power auto insurance study, the company scored 894/1000. It is also recommended for military members and has the highest A.M. Best rating. However, its customer service has been criticized by some consumers for lukewarm customer support, and its customer service score was mediocre.

The auto insurance market is divided into two major segments: direct response and agents/brokers. Direct response segment holds the largest share and is expected to grow at a faster CAGR of 10.0% between 2021 and 2028. It is one of the fastest growing segments and plays a significant role in the economy. Its members offer professional advice on various insurance products and work closely with clients to meet their needs. It is also projected to grow at the highest rate over the forecast period.

As the US auto insurance market is fragmented, the major players are State Farm and GEICO. These companies command 17% of the US private auto insurance market, a margin nine times larger than the next largest company, GEICO. Other major vendors include Allstate, USAA, Progressive, Farmers, Nationwide, and Travelers. Nonetheless, these companies do not have the largest market share in all states. So it is important to check the state specific offerings of these companies before purchasing a policy from one of them.

Although Progressive is the third largest auto insurer in the U.S., its customer service score is one of the lowest. The company expects to write over $33 million of auto insurance policies in 2020. It is also an A+ (Superior) rated company by AM Best, a good indicator of its financial stability. Additionally, it is one of the few auto insurance companies that take good care of policyholders when they need to file a claim.

For a better understanding of how insurers compare with each other, it is helpful to review the industry’s market share reports. These reports are based on premiums submitted to the National Association of Insurance Commissioners (NAIC).

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