The 25 largest commercial auto insurers in the U.S. are derived from the latest Market Share Report published by the National Association of Insurance Commissioners (NAIC). The NAIC issues an updated list of the top 25 auto insurers every year.
Commercial auto insurers provide policies covering cars, trucks, and other vehicles registered to businesses. Like most auto insurers, the top 25 are multi-line insurance companies, meaning they offer a variety of coverages (not just auto). Many are large companies that operate in all 50 states. Examples are Progressive, Travelers, and Liberty Mutual. However, some are smaller companies that sell policies in a limited number of states. For instance, Erie operates in 12 states while Selective sells policies in 27 states and the District of Columbia.
What Businesses Need a Commercial Auto Insurer?
Most businesses that use autos in their operations need a policy from a commercial auto insurer. Many insurers utilize the Business Auto Policy, a standard policy developed by the Insurance Services Office (ISO). Some insurers use forms they've devised themselves.
Business owners should not rely on their personal auto policy to cover autos used in a business. Personal policies are designed to cover individuals and their family members, not businesses. They contain business-related exclusions and lack the flexibility of a commercial policy.
How Much Does Commercial Auto Insurance Cost?
According to Insureon, small businesses pay a median cost of $1,704 per year for commercial auto insurance. The cost of a business auto policy depends on many factors, including the types of vehicles you own and how they're used. You'll pay more to insure a large dump truck than a small pickup. Likewise, a truck used to haul gravel will cost more to insure than a similar truck that remains parked at a job site most of the day.
If your auto insurance premium has increased, ask your insurer for an explanation. If the increase is due to a rate hike, ask your insurer for suggestions on reducing your premium.
If you recently renewed your commercial auto policy, you may have noticed that your premium went up. Commercial auto rates have been increasing for several years and have continued to rise in 2020. According to IVANS, rates increased by 4.81% in the first quarter of 2020. Rates are rising because insurers have lost money on commercial auto insurance every year since 2012. Here are some factors that have contributed to auto losses.
- Impaired, aggressive, or distracted drivers: Many accidents are caused by drivers who are drunk, overly aggressive, or distracted by their cell phones.
- Road congestion: The number of vehicles on the road has increased so the frequency of accidents has also increased.
- Rising medical costs: Bodily injury claims have become more expensive due to increasing medical costs.
- More litigation: More claims involve attorneys and litigation drives up costs.
- Escalating repair costs: Many modern vehicles are equipped with technology like blind-spot monitors and collision-avoidance systems. When such devices are damaged, they are costly to repair.
Saving Money On Premiums
While auto insurance premiums may be rising, there are steps you can take to lower your cost of insurance. One is to order a motor vehicle report (MVR) on every employee driver to ensure each has a satisfactory driving record. Many states permit employers to order MVRs as long as they have prior consent from employees. Another option is to institute a driver safety program that includes a policy on the safe use of cell phones and other devices on the road. Third, consider using telematics to keep track of company autos and monitor workers' driving behavior. Some insurers offer discounts to businesses that utilize telematics to improve fleet safety.
The term direct written premium means the total premium collected by an insurer without considering premiums ceded to reinsurers.
Top 25 Commercial Auto Insurers in the U.S.
Here are the top 25 commercial auto insurers in the U.S. based on the NAIC's Market Report dated March 30, 2020. The insurers are listed in descending order based on direct written premiums collected in 2019.
|Rank||Insurer||2019 Written Premiums||2019 Market Share|
|1||Progressive Group||$5.578 billion||12.36%|
|2||Travelers Group||$2.798 billion||6.20%|
|3||Liberty Mutual Group||$1.888 billion||4.18%|
|4||Nationwide Corp. Grp||$1.673 billion||3.71%|
|5||Old Republic Group||$1.614 billion||3.57%|
|6||Berkshire Hathaway Grp.||$1.569 billion||3.47%|
|7||Zurich Ins. Group||$1.427 billion||3.16%|
|8||Auto Owners Grp.||$1.113 billion||2.47%|
|9||Chubb Ltd. Grp||$967 million||2.14%|
|10||Allstate Insurance Group||$918 million||2.03%|
|11||State Farm Group||$860 million||1.90%|
|12||Hartford Fire & Cas. Group||$776 million||1.72%|
|13||Tokyo Marine Holdings Grp.||$770 million||1.71%|
|14||American Fin. Group||$750 million||1.66%|
|15||Cincinnatti Fin. Group||$737 million||1.63%|
|16||WR Berkley Corp. Group||$715 million||1.58%|
|17||American International Grp.||$676 million||1.50%|
|18||Fairfax Financial Group||$651 million||1.44%|
|19||Erie Insurance Group||$636 million||1.41%|
|20||Farmers Ins. Grp||$630 million||1.39%|
|21||Selective Insurance Group||$610 million||1.35%|
|22||Sentry Insurance Group||$557 million||1.23%|
|23||CNA Insurance Group||$513 million||1.14%|
|24||EMC Ins. Co. Group||$505 million||1.12%|
|25||Acuity, A Mutual Ins. Co.||$503 million||1.11%|
|Industry Total||$45.143 billion||100.00%|