Auto Insurance Market Share

Auto Insurance Market Share, Market Size and Industry Growth Drivers, 2019-2025

About the Auto Insurance Industry

Auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy. Auto insurance provides coverage for 1) Property, such as damage to or theft of your car; 2) Liability, your legal responsibility to others for bodily injury or property damage; 3) Medical, the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

Basic personal auto insurance and/or liability is mandatory in certain countries, depending on each country's law. Auto insurance coverages are priced individually to let you customize coverage amounts to suit your exact needs and budget. Policies are generally issued for six-month or one-year timeframes and are renewable. 

The world’s first car insurance policy was written in 1897 by Travellers. The policy was written to a man named Gilbert Loomis, a resident of Dayton, Ohio. Further behind were licensing laws, which didn’t start showing up on the books until 1903. Presumably, the process of getting insurance was simpler back in those days – nobody had to worry about details like driver’s license number or state minimums.

Today, there are approximately 279,001 people employed in the car insurance industry. Auto Insurance Market Share in the US is highly concentrated among a few companies, with the top 4 owning 50%. You can find Auto Insurance Market Size, Auto Insurance Market Share, and other trends and statistics below and you can get help with additional Auto Insurance industry market research here.

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Global Motor Insurance Market Size ($), 2019-2025

Auto Insurance Market Size

The chart shows the Auto Insurance Market Size from 2019 to 2025. In 2019, the size of the Auto Insurance Industry was $880B and is projected to grow 6% in 2020. From 2019 to 2025 the Auto Insurance Industry growth is projected to average 6% per year. Top 4 US Companies own 50% of Auto Insurance Market Share. These estimates were made before the Coronavirus (COVID-19) pandemic. The short term impact of COVID-19 on the Auto Insurance market growth will likely be Beneficial because After countries were in lockdown because of Covid-19, city streets became empty. The number of car trips dropped dramatically, leading to a consequent drop in car accidents and in the use of insurance. This may have an impact on the type of policies hired, switching premium policies to basic ones. Some insurance companies have already decided to offer discounts or refunds for their customers to retain them. Companies had to drastically adapt their operations to digital operations. The long term impact of COVID-19 on the Auto Insurance market growth beyond the COVID-19 pandemic will likely be Beneficial because, after the covid19 outbreak, social distancing will remain for a long while, leading to a possible boost in new car sales, more new drivers, which means more risk. This will result in favor of auto insurers, which will sell more policies and will recalculate rates according to the new risks. Request help with obtaining the source for this data and additional Auto Insurance industry market research here.

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Auto Insurance Market Share, US Top Companies, 2020
Auto Insurance Market Share

The chart shows Auto Insurance Market Share in 2020. The Auto Insurance Market is Fragmented among many vendors. The leading Vendor in the Auto Insurance Industry was State Farm with 17% market share in 2020, followed by GEICO with 13% Auto Insurance market share, Progressive with 11% Auto Insurance market share, All State with 9%, USAA with 6%, Liberty Mutual with 5%, Farmers with 4%, Nationwide with 3%, Travelers with 2%. Get help with market research for the Auto Insurance market, including the source for this Auto Insurance Market Share chart and other data here.

Growth Drivers

Auto insurance market growth is tightly connected to the growth in the motor vehicles market and the mandatory requirement for a vehicle to be insured by various countries across the world. Emerging countries will remain the growth engine of the global economy. Growth-enabling regulation helps increase insurance penetration in emerging markets and create a social safety net, pointing to governmental policies that promote insurance take-up, help build financial resilience of households, and develop certain industries. In addition to this, international solvency standards are being adopted at different speeds by different emerging nations. They are designed to protect consumers, maintain financial stability, and build trust in insurance companies. The use of technology in insurance is helping make products more affordable, business more profitable and provide access to new risk pools. Increasing urbanization and rising disposable income among the middle income population are expected to provide stable growth for the automobile industry over the next few years.

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Auto Insurance Industry Competitors and Products

Auto Insurance is a Mature market composed of a few large competitors and many small competitors. State Farm's market share was 17% of the Auto Insurance market in 2020. State Farm is the largest auto insurance company in the U.S. and possesses 17% of the total available market share. The company currently employs approximately 70,000 employees and has nearly 19,000 agents. State Farm operates as a mutual insurance company, meaning that it’s owned by its policyholders. GEICO's market share was 13% of the Auto Insurance market in 2020. GEICO has served as an underwriter to more than 16 million auto policies, which insure more than 24 million vehicles. The company’s size allows it to employ more than 36,000 people across nine regional offices, three service centers, and three claims centers. GEICO’s original customer base consisted of U.S. government employees and military personnel. Today, the insurance company’s customer base has expanded to include people in the private sector. Progressive market share was 11% of the Auto Insurance market in 2020. Progressive offers the ability to purchase auto insurance directly, online, or by phone. Alternatively, customers can sign up through independent insurance agents. The company employs over 33,000 people and has over 400 offices. Progressive is a publicly traded company. All State market share was 9% of the Auto Insurance market in 2020. Allstate is the second largest publicly traded property and casualty insurance company in America. Similar to State Farm, Allstate has a roster of local agents ready to serve customer needs. The company currently employs over 79,000 people. Esurance, a subsidiary of Allstate, is targeted towards self-directed and brand-sensitive customers while Allstate is geared for customers who enjoy local and personal service.

What Additional Auto Insurance Industry Data Does T4 Have?

T4's research team can help you learn more about the Auto Insurance industry with market analysis, competitive analysis, commercial Due Diligence, and other market research needs. This includes deeper analysis on competitors in the Auto Insurance market, including: Allianz, PICC Property and Casualty Co, Ping An Insurance (Group) Co of China, ICICI Lombard General Insurance, Sompo Holdings, Samsung Fire and Marine Insurance, GEICO; research into related topics such as Automobile, Insurance, Property & Casualty, Healthcare, Autonomous Vehicle Insurance, Automated Life Insurance Underwriting Systems; or additional support in the Insurance, Automotive Sectors or others. Find more information about T4's services here.

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