State Farm wrote the most auto insurance premiums in the US, says NAIC

Auto insurance premiums - car insurance

The National Association of Insurance Commissioners ranked the insurer in the top spot for 2021.

According to the National Association of Insurance Commissioners (NAIC), State Farm took the top spot among auto insurance companies in terms of its written private passenger vehicle policy premiums.

This ranking was released in the most recent NAIC Property/Casualty Market Share report.

NAIC released its market share data for 2021 in the report, including nationwide direct written premiums for the largest 25 companies and groups as reported on the annual financial statement state page that insurers must submit to the association.

As of the start of this month when NAIC released this report, the total direct premiums written for private passenger auto insurance was $260.6 billion, or 32.89 percent of all written premiums.

Auto insurance market decline

While State Farm still holds the top spot for the auto insurance market share, it has dropped.

The NAIC data showed that State Farm held 15.98 percent of the auto insurance market last year. This was a reduction of 7.24 percent when compared to the same time in 2020. Also notable was that Berkshire Hathaway Group, owner of GEICO, managed to take the second-place spot away from Progressive. Berkshire held 14.36 percent of the market. This also sent Allstate down another slot on the list, placing it at fourth. Progressive held 6.23 percent of the market share and Allstate had 4.55 percent. In both cases, their market shares fell when compared to the same time in 2020.

State Farm and Progressive also both saw a reduction in their net income last year, even as both companies raised their rates. According to the American Property Casualty Insurance Association (APCIA), the reason for this trend was that inflation has increased to its highest level in the last year that it has seen since 1982.

Still, according to State Farm in a news release from the end of February, it experienced “record growth in auto, home and life policies” last year, saying: “While experiencing record growth in auto policies, State Farm reported another year-over-year decrease in auto earned premium. The decrease in auto premium continues to reflect a focus on returning value to customers in the form of lower premiums when appropriate.”

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