The National Association of Insurance Commissioners' 2025 report on the largest car insurance companies in the U.S. reveals the industry is continuing to consolidate: The top five insurers held a cumulative market share of 63.59% in 2024, up from 62.49% in 2023.

The top two providers, State Farm and Progressive, account for more than 35% of the market by themselves.

Liberty Mutual tumbled from the sixth to seventh place, with direct written premiums dropping from over $13 billion in 2023 to $11.7 billion in 2024. Nationwide, meanwhile, fell out of the top 10 entirely, slipping from No. 10 to No. 13.

The report also reinforces how car insurance rates continue to outpace the cost of living: While inflation increased 3% between 2023 and 2024, direct written premiums shot up more than 13%.

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The largest private passenger insurer in the U.S. since the 1940s, State Farm had nearly $68 billion in direct written premiums in 2024, up from about $58 billion in 2023. Its market share also increased, from 16.84% to 18.87%.

Read ourProgressive Auto Insurance review.

Holding onto the No. 2 spot, Progressive reported more than $60 billion in direct written premiums last year, with a market share of 16.73%.

Read ourGeico Auto Insurance review.

A wholly owned subsidiary of Berkshire Hathaway, Geico kept the No. 3 slot this year, although its share of the market dipped from 12.3% to 11.63%. The Chevy Chase, Maryland-based company reported nearly $41.8 billion in direct written premiums in 2024.

Allstate’s market share remained fairly static at 10.19%, while direct written premiums increased to $36.58 billion in 2024 from $32.85 billion in 2023.

While only available to active duty service members, veterans and their families, USAA still nabbed the No. 5 spot and 6.17% of the auto insurance market. It reported $22.13 billion in written premiums in 2024.

Farmers Insurance rose from seventh to sixth place and reported close to $13.5 billion in written premiums in 2024. Its market share declined, however, from 4.18% to 3.76%.

Liberty Mutual fell from sixth to seventh place, with its market share declining from 4.20% in 2023 to 3.27% in 2024. The Boston-based company reported $11.74 billion in direct written premiums last year, down from $13.31 billion the year before.

Travelers moved up from ninth to eighth place in 2025, although its market declined from 2.08% to 2.00%. It reported $7.18 billion in direct written premiums last year, up from $6.58 billion in 2023.

AAA provides a variety of services to members across the U.S., including auto insurance through third-party underwriters like the Automobile Club of Southern California and the Automobile Club Group. It broke into the top 10 for the first time this year, reporting $6.47 billion in written premiums in 2024, up from $4.83 billion in 2023. AAA's market share increased slightly, as well, from 1.53% to 1.80%.

American Family Insurance dropped from eighth to tenth place in 2025, reporting $6.17 billion in written premiums and a 1.72% market share.

Shop around: There can be huge differences among insurance companies for the same basic policy. Get rate quotes from at least three providers every time you're up for renewal to ensure you're getting the best deal.

Pay your whole premium upfront: Most companies charge a fee for dividing your premium into monthly payments. You can often receive a discount for setting up autopay, as well.

Bundle home and auto insurance: Getting multiple lines of insurance from the same carrier doesn't just simplify your life, it can result in discounts of up to 25%.

Take advantage of other discounts: Rate reductions are often available to safe drivers, good students, homeowners, members of the military and others. The nation's largest car insurance company, State Farm has a discount of up to 30% if you use its Drive Safe & Save mobile app to track your driving.

Consider pay-per-mile insurance: If you don't drive often, a pay-per-mile policy can save you more than 40% over traditional insurance. You're charged a daily flat rate plus a few cents per mile.

Improve your credit score: In most states, insurance companies can use your credit history when calculating your rates. Paying off debts, lowering your credit utilization ratio and reporting errors or fraud are all ways to boost your FICO score.

Select a higher deductible: Raising your deductible from $200 to $500 can reduce the cost of collision and comprehensive coverage by as much as 30%, according to the Insurance Information Institute, while upping it to $1,000 can save you 40% or more. Just make sure you have adequate savings to cover the difference.

What are the largest auto insurance companies in the U.S.?

State Farm is the largest car insurance company in the U.S., with nearly $68 billion in direct premiums written in 2024 and a 18.87% market share. Progressive is the second largest, followed by Geico in third place.

Can you get a refund on your car insurance?

Most car insurance is paid on a monthly, biannual or annual basis. Typically, if you cancel a policy you've already paid for, you'll get a prorated refund. There may be a cancellation fee, however.

How much does car insurance cost?

The amount you'll pay for car insurance varies greatly depending on where you live, your age, your driving record and many other factors. The nationwide average for full coverage car insurance in April 2025 was $2,685 a year. For a liability-only policy, it was $800 a year.

What is a deductible in car insurance?

Your car insurance deductible is the amount you're responsible for paying for repairs or replacement of your vehicle before your insurer contributes anything. Drivers can select their deductible when buying a policy and, typically, a higher deductible means lower premiums.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance article is based on rigorous reporting by our team of expert writers and editors. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties and we pride ourselves on our journalistic standards and ethics.

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Car insurance rates rose more than 25% in February 2024, according to data from Bankrate. Premiums for full coverage auto insurance averaged $2,543, a 26% increase from the same time in 2023.

Louisiana motorists with full coverage spent 6.53% of their paycheck on insurance, the largest chunk of any state.

Unsurprisingly, consumers. are looking for ways to save: Nearly half (49%) of drivers are actively shopping for a new plan, according to a J.D. Power survey from April.

Car insurance rates

The average cost of a full-coverage car insurance policy hit $2,543 in February 2024, or $212 per month. A minimum coverage policy averaged $740 per year, or about $62 per month.

By October 2024, full coverage had tapered off to $2,388 per year (a little less than $600 a month) and minimum coverage was $664 (about $55 a month).

Premiums increased throughout 2023 and 2024 for several reasons, according to the Insurance Information Institute.

By October 2024, the national average for full coverage car insurance had leveled off to $2,388 per year, according to Bankrate, or a little less than $600 a month.

Auto-Owners

Auto-Owners had the cheapest average annual rates for full coverage, at $1756 a year for a driver with a clean record and good credit. That's about 25% less than the industry average.

USAA was the second cheapest at $1,921 a year. USAA is available to active-duty and retired service members, with generous discounts for parking your vehicle on base or storing it if you're deployed.

At $2,023 a year, Geico had the third-lowest rates. Geico is available nationwide and includes optional add-ons like accident forgiveness, roadside assistance and coverage for mechanical issues after the manufacturer's warranty expires.

Read our Geico auto insurance review.

In fourth was Amica, at $2,925 a year for full coverage. Since Amica pays dividends for auto policies in some states, customers can get a portion of their premiums back.

State Farm rounded out the bottom five, with annual premiums averaging $2,743. Policyholders enjoy big discounts with State Farm, including a safe driving discount worth up to 30%, up to 25% off for bundling and up to 20% off for having more than one car insured with State Farm.

Read our State Farm auto insurance review.

Even if you are not financing your car, nearly every state requires drivers to at least have liability insurance.

What does full coverage car insurance cover?

Full coverage car insurance combines liability insurance (pays for damages to other cars and drivers), collision coverage (pays for damage to your vehicle) and comprehensive coverage (pays for damage caused by vandalism, animal encounters or other non-collision events).

Is it normal for car insurance to increase every year?

It's not uncommon for your rates to go up annually, even if you haven't filed a claim. This can be caused by inflation, an increase in claims in your area or other reasons.

Does your credit score affect car insurance rates?

In most states, auto insurance companies use a credit-based insurance score to determine your premiums. While it's not the same as your FICO score, it's calculated using much of the same information.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every personal finance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

Catch up on CNBC Select's in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.