America’s #1 Insurance Company Revealed

With so many insurance providers in the market, who can really say they are the #1 insurance company in America? 

It’s not just about who’s the loudest or has the catchiest slogan—it’s a combination of things. It’s about the strongest balance sheet, most satisfied customers, best claims department, and overall market leadership.

For the latest rankings, in terms of market share and overall brand power, State Farm is America’s #1 insurance company. But what exactly is it that makes State Farm so popular? Find out what makes State Farm the best for millions of Americans and why it just seems to get stronger in a really crowded environment.

Ranking: What Makes State Farm the Best

Before we name any company “#1” in insurance, it’s important to spell out the criteria. There are a number of metrics from industry trackers like the National Association of Insurance Commissioners (NAIC) that include data such as:

• Direct written premiums (how much money a company pulls in from policies sold) And market share in various insurance sectors (auto, home, life, etc.)
• Claims handling performance
• Consumer satisfaction scores
• Financial strength ratings from agencies like A.M. Best, Moody’s and Standard & Poor’s

State Farm consistently ranks among the best in each of these categories.

State Farm: America’s Biggest and Most Popular Insurer

State Farm was started in 1922 by George J. Mecherle, a retired farmer and insurance salesman. Mecherle set out to provide auto insurance to farmers could trust for their needs. A lot has changed since then, today the company insures over 87 million policies and accounts across the country.

What makes State Farm so great?

1. Leading the Industry

State Farm is the reigning king of auto insurance in the United States. They own about 16-17% of the auto insurance market alone, that’s more than twice as much as second place GEICO holds with 7.7% of the auto insurance market share according to the NAIC. And for their home insurance, they have the most room under their roof, as no one else can call themselves ‘king’ quite like State Farm with so many homes insured with their plans in every nook and cranny of the city and beyond.

2. Agent-Centric Business Model

A couple of platforms won’t be enough to compete with State Farm, they have hundreds of agents across every state. A customer might find pleasure in a face-to-face interaction with a local agent vs. voice via phone with an agent. This is easy to see when you’re able to talk to your neighbor or a local agent about something you don't understand, or something you disagree with or dislike. This is precisely the feeling State Farm has decided to capitalize on through the years.

3. They Are Trustworthy

According to A.M. Best, they trust in State Farm to be financially responsible with their money as they have received a rating of A++ (Superior). What does that mean? If you have a policy with State Farm, you know that if things get really bad and you have to cash in, State Farm will be able to handle your claim, they have the financial means to do so.

4. Comprehensive Product Line

Although you probably are familiar with State Farm for auto and homeowners insurance, the company also offers the following:

• Life insurance
• Health insurance supplements
• Renters insurance
• Condo insurance
• Business and commercial insurance
• Banking and financial services

This selection of products makes it convenient for clients to combine services, allowing the company to offer discounts and to simplify the purchasing process for its clients.

How Does State Farm Compare to Other Insurance Companies?

Let’s stack up State Farm against some of its competitors:

CompanyAuto Insurance Market ShareHome Insurance Market ShareA.M. Best RatingNotable StrengthState Farm~16.8%~18.3%A++Strong agent networkGEICO~14.1%~5.5%A++Competitive pricing, digital-firstProgressive~13.7%~3.2%A+Telematics and innovationAllstate~10.4%~8.9%A+Extensive product range

Each of these companies has its unique selling points, but when it comes to size, financial strength, and brand familiarity, State Farm is number one.

What People Talk About: Happiness and Loyalty

Client contentment and trust are important too. According to J.D. Power’s 2023 Auto Insurance Study, State Farm is ranked higher than the industry standard for customer satisfaction in several states such as in the Midwest and the Southeast.

State Farm enjoys a good reputation among customers due to their solid financial results, and therefore they trust the brand. 

The clients value the simplicity of filing a claim with State Farm, and the availability of a local agent. Besides, they appreciate the company’s spectacular claims service and the professional reaction to scenarios of crisis including hurricanes, wildfires, and major disasters like flooding nationwide.

Old School Meets New Tech

Perhaps best known for its traditional agent force, State Farm has adopted digital, too. With its website and app, State Farm customers can file claims, check the status of a claim, or get some help if they’re stuck on the road—all at the tip of a finger.

The company is also using artificial intelligence (AI) and telematics to connect with its customers better. The company’s Drive Safe & Save™ program employs a mobile app or the vehicle’s OnStar system to give customers the chance to earn discounts for safe driving, thus building on the success of competitors like Progressive or the underwriting philosophy of GEICO.

Is State Farm the Insurer for You?

Choosing the right insurance provider is a very personal decision. We agree that the like of State Farm’s size, financial health, and plethora of services make it an enterprise that is good for millions. Nevertheless, it is better to shop around and compare quotes and policies to suit your personal needs.

However, if you are in the market for:

• An insurance company with a big pot of money
• Your very own personal agent
• Car, Home, and Life Insurance all in one
• Someone to talk to about your life changes at State Farm

…then, look at this, State Farm is the answer—and that’s what makes America’s number one.

Conclusion: 100 Years of Good Neighbors

With the turbulent 21st century ahead of us, insidious ads filling up each commercial break, new products launching by the day, the invite to unending loyalty anniversary parties, there are still lessons to be learned from State Farm’s performance. 

It’s a lesson as old as time: people still want to know about reliable, and hunt for comfort, safety, and someone who would feel for them. 

The lesson is this, that being around since 100 years, having been America’s insurer for a century, keeping the largest market share without cheating our clients with too low premiums, service is still what matters to us.

 

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