Top 10 Largest Auto Insurance Companies

State Farm is owned by State Farm policyholders. The fact that State Farm is a mutual insurance company means the company is privately owned by the people who purchase its insurance policies, and shares in the company are not available to investors on the public market. Among the 10 largest insurance companies in the United States, four companies, including State Farm, are private.

Michael Tipsord is State Farm's chairman, president and CEO. The board of directors consists of a broad group of business and community leaders. Some notable members include Dan E. Arvizu (chancellor of the New Mexico State University System), Allan R. Landon (former CEO of the Bank of Hawaii), and Kenneth J. Worzel (COO of Nordstrom, Inc.).

Yes. Geico is a good insurance company. Geico has been providing insurance since 1936, and it has an A+ Better Business Bureau (BBB) rating. It also ranked 2nd in WalletHub's latest comparison of the cheapest major car insurance companies.

Geico's NAIC rating is 1.601, however, which means it has received more complaints than the average insurance company. On the other hand, it may be encouraging to note that Geico is a wholly owned subsidiary of Berkshire Hathaway, which boasts famous investor Warren Buffet as its chairman and CEO.

• A+ BBB rating
• AA+ S&P rating
• A++ A.M. Best rating
• Average rating of 2.9/5 among user ratings on WalletHub
• NAIC rating of 1.601

Geico offers a wide variety of insurance products, including policies for your home, vehicle and business, through a network of affiliates as well as non-affiliated companies that specialize in writing different types of insurance policies. You can also bundle policies from Geico for a multi-policy discount.

• Vehicle
• Property
• Business
• Renters
• Identity protection
• Jewelry
• Life
• Travel/Overseas
• Pet
• Umbrella

You can get a free quote by contacting Geico online or over the phone at 1 (800) 207-7847.

You can lower your Progressive car insurance costs by taking advantage of Progressive discounts, opting for a higher deductible, and reducing your coverage, among other things. Progressive considers a variety of factors when calculating your premium, though some – like your age and location – are out of your control. Fortunately, you can take steps to influence other factors in order to lower your rate.

How to Lower the Cost of Car Insurance from Progressive

Use Progressive's auto insurance discounts

Progressive offers a wide variety of discounts that can help you lower your overall car insurance bill. For example, drivers can get a discount of up to 5%  if they have two or more policies with Progressive . Or you can save an average of 12% on your premium if you have more than one vehicle listed on your policy.

Raise your car insurance deductible

Opting for a higher deductible on any of your insurance policies from Progressive can lower your premium. But if you decide to go this route, it's important that you choose a deductible amount that you can still afford if you suddenly need to file a claim. Otherwise, you might not be able to use the coverage that you have.

Reduce your car insurance coverage

Most states require a certain amount of bodily injury liability and property damage liability coverage. But there are other coverage options (like comprehensive, collision, personal injury protection, and uninsured motorist) that you may not have to purchase, depending on your state.

Less coverage usually means lower premiums, but it could also lead to higher costs in the long run, so it's important to approach coverage decisions with caution.

Improve your driving record

Practicing save driving habits and avoiding moving violations can help you qualify for lower Progressive insurance rates long-term. You may also be able to attend traffic school in order to remove a violation or points from your record, depending on your state.

Build and improve your credit

Because your credit history is correlated with your likelihood of filing an insurance claim, Progressive uses your credit data to calculate your premium in states where it is legal. As a result, having good credit makes you less of an insurance risk, which will reduce your rates over time.

Drive less

Whether you can shorten your commute to work, use more public transportation, or even ride a bicycle more, driving fewer miles each year could lower your Progressive premium.

Drive an insurance-friendly car

Expensive cars, sports cars, and cars with high rates of theft are considered to be riskier to insure than cheaper, more practical vehicles. Before you buy a new car, get a new quote from Progressive to see how it will affect your rate. If the cost is out of your budget, then you should probably choose a different car.

Sign up for Snapshot

Snapshot, the Progressive telematics program rewards you for good driving with a discounted premium. Specifically, Snapshot tracks miles driven, acceleration, braking, the time of day that you drive, and distracted driving. By using Snapshot, drivers can save an average of $145  on their rate.

Finally, if you're still struggling to afford your Progressive policy, you should consider switching insurers. Even if you're not actively looking for a new policy, it's generally a good idea to compare quotes from three different companies every 6-12 months. To learn more, check out WalletHub's guide to switching car insurance companies.

Nine of the 10 largest U.S. auto insurance companies operate in Texas, including State Farm, Progressive, GEICO and Allstate. American Family Insurance is the only major car insurance company that does not cover Texas drivers. When you consider smaller insurers, the list of Texas auto insurance companies grows to 52.

When you're looking for car insurance, in Texas or any other state, figuring out which companies are eligible to cover you is only a means to an end. Your real goal is finding the best coverage for your needs at the lowest price. And WalletHub's 2019 study of the best cheap car insurance in Texas provides a helpful starting point.

Cheapest Texas Auto Insurance Companies

1. Progressive
2. GEICO
3. Allstate
4. Nationwide
5. Travelers
6. Dairyland
7. Liberty Mutual
8. Safeco
9. Farmers
10. Amica

State Farm, the largest insurer in the country, did not make the list of the cheapest car insurance companies in Texas, but they do offer policies there and could be the cheapest provider for some people. Rates differ so widely based on age, gender, location, car model, driving history, credit rating and coverage level, that the only way to really know which company will be best for you is to get multiple quotes and compare.

Yes, Allstate does offer free towing for customers who have the company's roadside assistance coverage. Allstate roadside assistance generally costs $25 annually per vehicle when it is added to an Allstate car insurance policy, and the coverage pays for up to $150 in towing services. Allstate customers can request roadside assistance online or call 1-877-597-3393.

It's also worth noting that drivers without an Allstate policy can purchase an Allstate roadside assistance membership plan, which starts at $79 annually. Plus, drivers without any pre-purchased roadside assistance can request pay-per-use roadside assistance through the Allstate website.

What Allstate Roadside Assistance Covers

• Towing services up to $150
• Jump starts
• Fuel delivery
• Lockout services
• Tire change

While Allstate's roadside assistance covers towing and other services, it doesn't cover the cost of repair parts, replacement keys, or major fixes due to things like engine failure or structural damage.

USAA insurance is only for military service members, veterans, and their immediate family members. Once someone becomes a USAA member, USAA eligibility can continue passing down through their spouse and children, even if the family members themselves never join the military.

Who Can Qualify for USAA Insurance?

• Active, retired, and honorably discharged members of the U.S. military
• Cadets and midshipmen of U.S. service academies
• Children and step-children of current members
• Spouses and widows/widowers of current members
• Former military spouses who have not remarried

To learn more, check out WalletHub's USAA insurance review.

You should switch your car insurance to a different company when you can find a cheaper rate for the same amount of coverage without sacrificing in terms of things like customer service. It's actually best to compare quotes and consider switching insurance companies every 6-12 months in order to minimize costs. It's also worth checking prices anytime you have a change in circumstance that will affect your rate, such as insuring a new car or adding a new driver.

When to Consider Switching Car Insurance Companies

When You Add a New Driver

Adding a teenager to your insurance policy costs 140% to 160% extra, on average. On the other hand, adding an experienced driver could increase or decrease your premium, depending on the exact scenario. As a result, it's well worth shopping around before simply accepting a new rate from your current insurer.

When You Reach a Threshold for Age or Experience

Car insurance rates vary dramatically by age, with particularly sharp drops when a driver turns 19 and 21 years old. Similarly, when a driver has been on the road for at least five years, they will usually be able to get a lower rate.

When You Add or Replace a Car

The cheapest insurer for an older car might not be the cheapest for a brand new car or a specialty vehicle, since each insurer calculates rates differently. If you're adding a vehicle, you should also factor in any multi-car discounts that are available from different companies.

When Your Driving Record Changes

If you were recently cited for a moving violation, each insurer will adjust your rates by a different amount, so switching could make sense. Similarly, some insurance companies will look back at only three years of your driving history, while others will evaluate a longer period. As a result, it's a good time to shop around for a better price when violations or claims reach the three-year milestone. Getting a copy of your driving record and your CLUE Report can help you time things right.

When Your Credit Score Improves

Your credit score can be a major factor in car-insurance pricing. If it has improved, let your current insurer know and then see if other companies can beat your insurance company's price.

When Your Insurance Needs Change

Financing a new car or paying off a loan may change the coverage types you need to carry. You may also want to reevaluate your policy limits and deductible.

When Your Marital Status Changes

Married drivers usually pay less for car insurance than single drivers, so make sure to notify your insurance provider about your nuptials. You should also take the opportunity to see if another insurer will offer a lower premium.

When You Become a Homeowner

Your status as a homeowner rather than a renter can affect your premiums. Insurers often charge lower premiums to homeowners, and you can also get a multi-policy discount if you insure your home and car with the same company.

When Your Education Level or Employment Changes

Earning a college degree will lower your rates with some insurers more than others. Some companies also offer a low-mileage discount, which could benefit you if you get a new job with a shorter commute.

Yes, Liberty Mutual insurance rates are competitive for some drivers, including teens, college students, and military personnel. Liberty Mutual car insurance costs an average of $879  annually, or $73 per month.

Liberty Mutual's car insurance rates are based on your driving record and experience, along with factors like the type of car you drive, your ZIP code, your insurance history, and more. Your coverage and deductible choices also impact your final quote, as do your eligibility for discounts.

Sample Liberty Mutual Car Insurance Rates

These sample quotes are representative of Liberty Mutual's insurance prices, but individual results will vary. To learn more about how we obtained these sample quotes, check out the methodology section of our complete Liberty Mutual car insurance review. 

GEICO is cheap because it sells insurance directly to consumers and offers a lot of discounts. GEICO is not the cheapest insurer out there, though. For example, GEICO ranks 21st for the cheapest car insurance among 46 major companies, based on WalletHub's 2019 GEICO car insurance review. Competitors like Esurance and Progressive are actually a bit cheaper overall.

Still, GEICO is pretty cheap relative to many other major insurance providers, and there are good reasons for that.

GEICO is cheap for many consumers because it offers a wider variety of discounts than many major providers. There are GEICO discounts based on a driver's history and habits on the road as well as any affiliation they have with 800+ eligible organizations, including the federal government. You can also get discounts for taking a driver's education course or making your payments electronically. GEICO offers a number of discounts for having a car with certain safety equipment, too, such as “passive restraint” seat belts and anti-lock brakes. Most consumers qualify for more than one discount, which helps to lower the overall cost of their premiums.

The fact that it sells insurance directly to consumers is another big reason why GEICO is so cheap. This eliminates the cost of middlemen. GEICO has significantly fewer local offices and agents than companies like State Farm and Allstate, limiting agents to high-population areas only. Having a smaller agent network gives GEICO savings it can pass on to its policyholders.

GEICO started with direct phone sales but has grown rapidly in the 21st century by developing easy-to-use sales technology. In fact, GEICO focuses today on keeping their rates low by investing in, and beating the competition in, technology that helps reduce manhours, minimize their cost of selling and increase convenience to consumers. Today, you can use GEICO's advanced website or mobile app to easily find information on insurance or get a personalized quote. You also can check rates and get help with coverage and discount decisions on GEICO's apps for Amazon Alexa and Google Home.

Yes, insurance companies share claims history with each other using databases such as C.L.U.E., which is run by Lexis Nexis and contains claims data from more than 99% of car insurance companies. Insurers can check a driver's claims history using C.L.U.E. if the driver wants a quote. Claims history information is important to insurance companies because drivers with a history of claims, especially at-fault claims, present more risk to insurers.

Insurance claims databases are the industry's equivalent of credit reports. Like credit reports, these databases are designed to provide a centralized record of a consumer's past behavior. This information helps insurance companies decide what premium to charge based on the individual driver. But rest assured that your claims history is only one factor that goes into your premium. Insurers will also consider characteristics such as age, driving record, location, and vehicle information.

For more information on insurance claims history databases and to learn how to check your claims history report for free, check out WalletHub's guide to C.L.U.E. reports.