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.
That being said, here are the the top insurance companies in the United States by market share (not necessarily quality), according to the NAIC.com :
Top 10 Insurance Companies
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. Travelers Insurance Company
6. Farmer’s Insurance Group (also owns 21st Century Insurance)
7. Nationwide Insurance Company
8. American International Group (AIG)
9. Progressive Insurance Group
10. AAA Insurance Company
*This list is based on data from 3/31/2014.
By “top,” they mean the largest insurance companies, not necessarily the best insurance companies. Remember, bigger isn’t always better, and in many cases could mean more red tape and hassle when dealing with them. And even a higher price!
Insurance companies, much like other large corporations, don’t always specialize in just one thing. However, they do tend to stick to insurance and financial services.
The insurance companies listed above may offer a combination of property, casualty, life, and/or health insurance coverage, along with an array of financial products as well. But the rankings are based on property and casualty lines only.
There are thousands of insurance companies out there to choose from; some focus on only one type of insurance or one specific region of the United States. For those reasons, they may not be on this list, despite being great companies.
It’s certainly not necessary to purchase an insurance policy from one of the companies listed above to ensure you receive adequate coverage and service.
In fact, it’s recommended that you obtain insurance quotes online and consult with an independent insurance agent so you can compare your options and get the best possible price.