What are private-passenger car insurance companies?
Compare private car insurance companies by their financial ratings, market share, direct premiums written. and loss ratio before you make your choice. If you choose a smaller, local car insurance company, you may have a more personal experience. However, one of the top 10 car insurance companies may have your back better than private car insurance companies.
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Kristen Gryglik
Licensed Insurance Agent
Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...
Licensed Insurance Agent
UPDATED: Nov 8, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 8, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Technology has changed how you shop for car insurance
- Investigate the market share, direct premiums written, and loss ratio of each company before choosing
- It may be easier to negotiate with private car insurance companies
Private car insurance companies insure cars that are non-commercial. The industry of private car insurance is one of the most competitive industries in the world, and there are always deals and car insurance discounts to be had when it comes to private auto insurance.
The average citizen spends twice as much as they should over a lifetime for private car insurance. People tend to pay too much for private car insurance because the auto insurance industry is one of the most competitive in the world.
Enter your ZIP code in our car insurance comparison tool to compare local private car insurance companies to the big-name car insurance companies that take up most of the market share.
Not yet ready to buy car insurance? Read on to learn more.
How do I negotiate rates with private car insurance companies?
It is important to know that car insurance prices are not set in stone. Many people simply take the quotes that each individual company gives them as completely un-negotiable, as a take it or leave it kind of situation. Nothing could be further from the truth.
The truth is that insurance companies are some of the most profitable companies in the world because they hide their best deals, and exercise a program of selective discounting, which is a privilege only given to those who know what they are doing inside the market.
The first step is to ascertain exactly what the market is doing in relation to car insurance for people of your demographic and driving record.
This is done by shopping around at insurance sites before taking any information to any individual company. Below is a table comparing the top 10 largest companies on several factors, including rates.
| Insurance Company | Availability | Average Annual Rates | Higher/Lower than National Average Annual Rate (%) | Cheapest Insured Vehicle by Make and Model |
|---|---|---|---|---|
| Allstate | All 50 States and D.C. | $4,532.96 | 23.82% (Higher) | 2015 Toyota RAV-4 |
| American Family | 19 States | $3,698.77 | 1.03% (Higher) | 2015 Honda Civic |
| Farmers | All 50 States and D.C. | $3,907.99 | 6.75% (Higher) | 2015 Toyota RAV-4 |
| Geico | All 50 States and D.C. | $3,073.66 | -16.04% (Lower) | 2015 Toyota RAV-4 |
| Liberty Mutual | All 50 States and D.C. | $5,295.55 | 44.65% (Higher) | 2015 Toyota RAV-4 |
| Nationwide | 46 States and D.C. | $3,187.20 | -12.94% (Lower) | 2018 Toyota RAV-4 |
| Progressive | All 50 States and D.C. | $3,935.36 | 7.5% (Higher) | 2015 Toyota RAV-4 |
| State Farm | All 50 States and D.C. | $2,731.48 | -25.39% (Higher) | 2015 Honda Civic |
| Travelers | 42 States and D.C. | $3,729.32 | 1.87% (Higher) | 2015 Ford F-150 |
| USAA (Military & Family Members) | All 50 States and D.C. | $2,489.49 | -32% (Lower) | 2015 Honda Civic |
Reviewing the table above will give you some ideas about what to expect from smaller, private car insurance companies.
Another tip that on is that just because you find the lowest price for car insurance now does not mean that you will have that price forever.
Companies in the car insurance industry offer highly competitive car insurance quotes, and there is always some introductory deal to steal away business from competitors.
You as a customer should have no problem switching car insurance companies every six months if you have to if your car insurance company is not able or willing to give you the discounts that another insurer is.
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How do I compare rates from private car insurance companies?
There is an advantage of comparing car insurance policies online first. As you switch from car insurance company to car insurance company, you definitely do not want to have a get in your service.
What the comparison sites can give you is insight into the company policy as well as the company price, so that you are not stuck with private car insurance policy that does not actually cover you in the event of an accident.
They are out there, and they are to be ignored.
Another thing that comparison sites can give you is the willingness and the information with which to negotiate changes in your risk. There are many people who missed out on discounts that they could receive on a car insurance policy simply because they do not communicate with their current car insurance company.
For instance, if you change the amount of mileage that you are driving to and from your commute from work, or you add on a garage where before you did not have one, these things are a reduction of risk for the car insurance company, and they should pass the savings along to you in the form of a lower premium payment.
If your company is not willing to do this, then you can easily go to these comparison websites and find a company that will. No change that you undertake for the reduction of risk should go unrewarded by your private car insurance company.
You have spent good money on protecting your own vehicle — your car insurance company should recognize this and, as is their expertise, waited into the probability statistics on your risk profile.
How do you choose the best private car insurance company?
One example of what you would consider public knowledge is ratings from accredited or government agencies. The agencies often direct more effort and tracking towards the top 10 car insurance companies, but as long as private companies registered with them, their data should be available on the NAIC site.
The National Association of Insurance Commissioners (NAIC) publishes an annual report that reports the financial stability of all car insurance companies, big and small. Here’s what you should look for:
- Direct Premiums Written – the total dollar amount in premiums received by an insurance company without any adjustments.
- Market Share – indicates the degree (in percent) of market concentration in a line of business.
- Loss Ratio – a percent that represents the amount paid out on claims against what a company earns in premiums.
Even taking a look at the top 10 companies in the car insurance industry market can shine some light on what to look for in private car insurance companies.
The NAIC’s annual report outlines the direct premiums written, market share, and loss ratio for the top 10 companies in the car insurance market. In some cases, you can find stats on smaller companies.
The table also indicates whether these criteria are rising (↑), falling (↓), or remaining steady (~) based on NAIC data from 2015 through 2018.
| Companies | A.M. Best Rating | Direct Premiums Written (in billions) | Market Share (in percent) | Loss Ratio (in percent) |
|---|---|---|---|---|
| Allstate | A+ (Superior) | $22.7 (↑) | 9.19% (↓) | 56% (↓) |
| American Family | A (Excellent) | $4.7 (↑) | 1.9% (↑) | 69% (~) |
| Farmers | A (Excellent) | $10.5 (↑) | 4.26% (↓) | 61% (~) |
| Geico | A++ (Superior) | $33.1 (↑) | 13.41% (↑) | 71% (~) |
| Liberty Mutual | A (Excellent) | $11.8 (↑) | 4.77% (↓) | 62% (~) |
| Nationwide | A+ (Superior) | $6.7 (↓) | 2.73% (↓) | 58% (↓) |
| Progressive | A+ (Superior) | $27.1 (↑) | 10.97% (↑) | 62% (~) |
| State Farm | A++ (Superior) | $41.9 (↑) | 17.01% (↓) | 63% (↓) |
| Travelers | A++ (Superior) | $4.7 (↑) | 1.9% (↑) | 60% (~) |
| USAA (Military & Family Members) | A++ (Superior) | $14.5 (↑) | 5.87% (↑) | 77% (~) |
Because loss ratios can fluctuate from year to year, the safest bet is if they stay in the 60-to-70 percent range.
A loss ratio (or claim settlement ratio) lower than 60 percent shows the company is not paying out on enough claims. A loss ratio above 70 percent shows the company may be losing money, which long-term can mean an increase in rates.
The NAIC’s website even has detailed information about the smaller, local, and private car insurance companies.
There are many websites dedicated solely to the practice of comparing private car insurance companies against each other and against the market as a whole. The smart move is to compare rates to find the best plan for the coverage that you need.
What many people have found is that those customers who come in with an idea of what they should be paying and often end up paying a great deal less than those who do not.
How has the internet changed car insurance?
Before the rise of the Internet, there were not many opportunities for people to compare car insurance quotes from private car insurance companies without going to each and every company.
Technology has changed how you shop for car insurance. Just like the stock market, information about private car insurance companies that used to be limited to the elite inside of the industry is now public knowledge, easily accessible for anyone who knows where to look.
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Case Studies: Exploring Private Car Insurance Companies
Case Study 1: John’s Personal Experience With a Local Car Insurance Company
John, a resident of a small town, decided to choose a smaller, local car insurance company for his private passenger car. He valued the personalized service and support offered by such companies.
John found that the local car insurance company provided him with competitive rates, tailored coverage options, and excellent customer service. This personal experience highlighted the benefits of opting for a smaller, local car insurance company.
Case Study 2: Sarah’s Positive Experience With a Top 10 Car Insurance Company
Sarah, a driver living in a major city, decided to go with one of the top 10 car insurance companies for her private passenger car. She valued the financial stability and reliability of these well-established companies.
Sarah found that the top 10 car insurance company offered her a comprehensive coverage plan, prompt claims handling, and a wide network of repair shops. This showcased the advantages of choosing a reputable and established car insurance company.
Case Study 3: Michael’s Savings by Switching Car Insurance Companies
Michael, a careful driver, decided to explore different private car insurance companies to find the best rates and coverage for his vehicle. After using a car insurance comparison tool, he discovered that switching car insurance companies every six months could lead to significant savings.
Michael found a new car insurance company that offered him a lower premium, similar coverage, and additional discounts. This emphasized the importance of comparing rates and being proactive in seeking better deals.
Case Study 4: Emily’s Successful Negotiation With her Private Car Insurance Company
Emily, an informed policyholder, learned that car insurance prices are not fixed and negotiable. She researched the market and gathered quotes from multiple private car insurance companies. Armed with this information, Emily approached her current car insurance company and negotiated for a lower premium.
By highlighting changes in her risk profile, such as reduced mileage and the addition of a garage, she successfully obtained a discounted rate. This demonstrated the potential savings that can be achieved through effective negotiation with private car insurance companies.
The Bottom Line: Private Car Insurance Companies
To choose the best car insurance, which is a huge expenditure for the majority of people in today’s economy, you must use the information that you are given. Information that was not available even 10 years ago is now completely available online, and on top of that, mostly free of charge.
Be sure to follow the tips above and you are sure to pay much less for your car insurance policy through diligent and insightful policy comparison.
Are you looking to compare car insurance rates from private car insurance companies? Enter your ZIP code into the free tool below now for affordable car insurance prices near you.
Frequently Asked Questions
What are private-passenger car insurance companies?
Private-passenger car insurance companies are insurance providers that offer coverage specifically for personal automobiles used for non-commercial purposes. They provide various types of insurance policies designed to protect private vehicle owners from financial losses due to accidents, theft, damage, and other covered events.
What types of coverage do private-passenger car insurance companies offer?
Private-passenger car insurance companies typically offer a range of coverage options, including:
- Liability coverage: This protects you if you cause an accident and are responsible for injuries or property damage to others.
- Collision coverage: This covers damage to your vehicle caused by a collision with another vehicle or object.
- Comprehensive coverage: This covers damage to your vehicle caused by non-collision incidents, such as theft, vandalism, fire, or natural disasters.
- Uninsured/underinsured motorist coverage: This protects you if you’re involved in an accident with a driver who has little or no insurance.
- Medical payments coverage: This covers medical expenses for you and your passengers after an accident, regardless of fault.
How do private-passenger car insurance companies determine insurance premiums?
Private-passenger car insurance companies consider several factors when determining insurance premiums, including:
- Driver’s age and gender
- Driving record and history of accidents or traffic violations
- Type of vehicle and its value
- Coverage limits and deductibles
- Location and where the car is primarily parked
- Credit history (in some cases)
What are the advantages of choosing private-passenger car insurance companies?
Pros of private-passenger car insurance companies include:
- Wide range of coverage options to choose from
- Flexibility to customize policies to meet individual needs
- Competitive pricing due to a large number of companies in the market
- Dedicated customer service and claims support
- Additional benefits like roadside assistance, rental car reimbursement, and discounts for safe driving or multiple policies
Are there any disadvantages to private-passenger car insurance companies?
Cons of private-passenger car insurance companies may include:
- Premium rates can vary significantly depending on personal factors
- Some companies may have stricter underwriting criteria, making it harder for high-risk drivers to find affordable coverage
- Policies may include exclusions or limitations that require additional coverage
- Customer experience and service quality can vary between companies
Q6: How can I find a reliable private-passenger car insurance company? A6: To find a reliable private-passenger car insurance company, consider the following steps:
- Research and compare multiple companies, their coverage options, and customer reviews.
- Assess your specific insurance needs and ensure the company can meet them.
- Check the company’s financial strength ratings from independent rating agencies.
- Verify the company’s licensing and legitimacy with your state insurance department.
- Seek recommendations from friends, family, or trusted insurance agents.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Kristen Gryglik
Licensed Insurance Agent
Kristen is a licensed insurance agent working in the greater Boston area. She has over 20 years of experience counseling individuals and businesses on which insurance policies best fit their needs and budgets. She knows everyone has their own unique needs and circumstances, and she is passionate about counseling others on which policy is right for them. Licensed in Massachusetts, New Hampshire,...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.