Private 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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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Feb 22, 2021

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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.

Here's what you need to know...

  • 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.

Top 10 Car Insurance Companies by Availability, Average Annual Rates, and Cheapest Car to Insure
Insurance CompanyAvailabilityAverage Annual RatesHigher/Lower than
National Average
Annual Rate (%)
Cheapest Insured Vehicle by
Make and Model
AllstateAll 50 States and D.C.$4,532.9623.82%
(Higher)
2015 Toyota RAV-4
American Family19 States$3,698.771.03%
(Higher)
2015 Honda Civic
FarmersAll 50 States and D.C.$3,907.996.75%
(Higher)
2015 Toyota RAV-4
GeicoAll 50 States and D.C.$3,073.66-16.04%
(Lower)
2015 Toyota RAV-4
Liberty MutualAll 50 States and D.C.$5,295.5544.65%
(Higher)
2015 Toyota RAV-4
Nationwide46 States and D.C.$3,187.20-12.94%
(Lower)
2018 Toyota RAV-4
ProgressiveAll 50 States and D.C.$3,935.367.5%
(Higher)
2015 Toyota RAV-4
State FarmAll 50 States and D.C.$2,731.48-25.39%
(Higher)
2015 Honda Civic
Travelers42 States and D.C.$3,729.321.87%
(Higher)
2015 Ford F-150
USAA
(Military & Family Members)
All 50 States and D.C.$2,489.49-32%
(Lower)
2015 Honda Civic
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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.

Top 10 Car Insurance Companies by A.M. Best Rating, Market Share, and Loss Ratio
CompaniesA.M. Best RatingDirect Premiums Written
(in billions)
Market Share
(in percent)
Loss Ratio
(in percent)
AllstateA+ (Superior)$22.7 (↑)9.19% (↓)56% (↓)
American FamilyA (Excellent)$4.7 (↑)1.9% (↑)69% (~)
FarmersA (Excellent)$10.5 (↑)4.26% (↓)61% (~)
GEICOA++ (Superior)$33.1 (↑)13.41% (↑)71% (~)
Liberty MutualA (Excellent)$11.8 (↑)4.77% (↓)62% (~)
NationwideA+ (Superior)$6.7 (↓)2.73% (↓)58% (↓)
ProgressiveA+ (Superior)$27.1 (↑)10.97% (↑)62% (~)
State FarmA++ (Superior)$41.9 (↑)17.01% (↓)63% (↓)
TravelersA++ (Superior)$4.7 (↑)1.9% (↑)60% (~)
USAA
(Military &
Family Members)
A++ (Superior)$14.5 (↑)5.87% (↑)77% (~)
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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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Enter your ZIP code below to view companies that have cheap car insurance rates.

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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.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

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