Five auto insurers have the largest market share in at least one U.S. state, but State Farm holds the title in more states than any of its competitors—29 to be exact.
Within the country, 125 insurance companies wrote nearly $262 billion in direct premiums for passenger auto insurance policies in 2021, according to National Association of Insurance Commissioners data. Despite the wildly competitive car insurance market, auto insurance rates are increasing, up 19.2% from 2022, according to the Bureau of Labor Statistics. The reason is an unfortunate mix of an increase in car accidents, supply chain disruptions, and nationwide inflation, which has created a 15.1% jump in car repair costs since last year.
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To gain deeper insight within Florida, Insurify used data from the National Association of Insurance Commissioners to identify the top insurers statewide as part of a larger national analysis.
"People are getting into more car accidents that are more severe, and the cars are more expensive to fix because of the more expensive accidents," said David Marlett, managing director of the Brantley Risk and Insurance Center at Appalachian State University. "The industry is spending more money than it's bringing in."
One part of the auto insurance industry that is expected to grow and potentially provide relief for consumers is "telematics insurance" or the "InsurTech" providers, Marlett said. Telematic insurance companies don't use traditional metrics such as age, neighborhood, gender, or driving record to determine rates. Instead, they use technology installed in the car to monitor drivers' behavior and habits such as distance, driving routes, and speed.
Over the next five years, the insurance telematics industry is projected to grow from just under $5 billion to $11 billion, according to an August 2023 study from Mordor Intelligence. "Performance-wise, they are not changing the market yet, but they could," Marlett said.
Five car insurers lead the way
Bloomington, Illinois-based State Farm is the top car insurance provider in 29 states. Following behind is Progressive with 10 states and GEICO (owned by Berkshire Hathaway) with nine states plus the District of Columbia. Allstate and MAPFRE are each the top insurers in just one state.
MAPFRE, a Spanish conglomerate, is the top auto insurance company in Massachusetts. This is, in part, thanks to its 2008 purchase of The Commerce Insurance Company, an agency founded in 1972 in Webster, Massachusetts, which was a dominant player in the Bay State's insurance market before the sale and has retained clients since.
Allstate is the top car insurance provider in North Carolina. In 2021, the agency acquired National General, an insurance agency originally founded in 1939 as GMAC Insurance, a part of the General Motors automaking corporation.
It's worth noting, however, that even in Washington D.C., where GEICO (owned by Berkshire Hathaway) has the largest market share of any company in any state, that market share is 38.74%. In other words, nearly 62% of motorists in the district are actually insured by another firm. In California, the state's largest auto insurance company, State Farm, has the smallest market share compared to any top insurer in other states, holding only 12.06% of the market in the Golden State.
Florida insurers by the numbers
Insurers in Florida wrote $22.6 billion in direct premiums for passenger auto coverage in 2021. Overall, insurers in the state had a loss ratio of 74.6%, compared to about 68% nationwide. These were the top 10 auto insurers by market share in Florida: - #1. Berkshire Hathaway Group (24.7% market share) - #2. Progressive Group (21.5%) - #3. State Farm Group (13.9%) - #4. Allstate Insurance Group (10.5%) - #5. United Serv Automobile Assn Group (6.6%) - #6. Kemper Corp Group (2.8%) - #7. Liberty Mut Group (2.8%) - #8. Farmers Insurance Group (2.7%) - #9. Travelers Group (2.1%) - #10. Auto Owners Group (1.5%)
This story features data reporting by Paxtyn Merten, writing by Natalie P. McNeal, and is part of a series utilizing data automation across 51 states.
This story originally appeared on Insurify and was produced and distributed in partnership with Stacker Studio.