In Texas, the five top auto insurance companies, ranked by market share, are State Farm Mutual Auto Insurance Company, Progressive Mutual Insurance Company, Farmers Texas County Mutual Insurance Company, Allstate Corporation (NYSE: ALL) and GEICO.
Companies in the auto insurance industry bring in billions of dollars annually in premium payments. They augment their incomes by investing the premiums they receive. Auto insurance is essentially protection purchased for any type of road vehicle, including trucks, cars and motorcycles. Insurance provides financial protection against physical damage to vehicles or property and bodily injury that may result from collisions. Insurance may also offer financial protection against things such as vehicle theft or damage sustained from other occurrences than collisions. Auto insurance regulations, particularly regarding minimum required insurance coverage levels for bodily injury and property damage, vary from state to state.
State Farm Mutual Auto Insurance Company
In Texas, State Farm is ranked number one, with more than a 17% market share for auto insurance. The company is also ranked number one in overall customer satisfaction by J.D. Power and Associates. State Farm owes much of its success to providing a wide range of services. Specifically in Texas, State Farm obtained a substantial market share lead, one that it has never lost, by being operational in the state since the 1930s, longer than any other major auto insurance company. It provides financial and insurance services to customers throughout the United States and Canada. Among its products are auto, homeowners, health and business insurance. All of the company’s insurance products are sold through agents. The company also offers a number of banking products, including checking and money market accounts, credit cards, IRAs, mutual funds, home mortgages and equity loans.
Progressive County Mutual Insurance Company
Progressive County Mutual Insurance Company holds roughly a 9% market share of the auto insurance industry in Texas. The company is part of Progressive Corporation (NYSE: PGR), one of the largest auto insurance companies in the U.S. Progressive has policies for autos, motorcycles, boats, RVs and commercial vehicles.
The company’s services are offered primarily by phone or through the Internet, although it is also represented by independent agents. Part of the company’s marketing campaign, and a tactic it is well known for, is to offer quotes for its competition along with its own quote. Progressive's very successful advertising campaigns are widely recognized and have contributed substantially to its rapid growth in Texas and throughout the U.S.
Farmers Texas County Mutual Insurance Company
Farmers Texas County Mutual Insurance Company holds a Texas auto insurance market share of approximately 8.5%. The company is part of Farmers Insurance Group, otherwise known as simply Farmers. Nationwide, the company has over 20,000 employees and nearly 60,000 independent and exclusive insurance agents. Farmers has a host of services and insurance products, including business insurance for small- and medium-sized businesses. It aggressively markets itself as offering more precise, individually tailored coverage.
Allstate holds fourth place in the Texas auto insurance marketplace, with a 5.85% market share. It is the largest publicly held insurance company in the U.S. It also has personal lines insurance operations in Canada. The company is headquartered in Illinois and has some of the most recognizable marketing campaigns. It offers a wide range of products and services, including auto, home and life insurance, as well as wealth and financial management services. Allstate has positioned itself in the marketplace as a company offering more personalized service than other insurance firms.
Government Employees Insurance Company
GEICO has an approximate market share of 4.3%. It is primarily a private passenger auto insurance provider. It also provides ATV and motorcycle insurance. In addition to insurance for vehicles, GEICO has a basket of other insurance products available, including flood, life and identity theft insurance. The company utilizes online services for a large percentage of policy sales, which enables it to reduce costs and offer more competitive premium rates. GEICO was instrumental in reducing auto insurance rates, as it was one of the first auto insurance companies to operate nationwide, offering very competitive pricing. GEICO is a subsidiary of Warren Buffet's Berkshire Hathaway (NYSE: BRK.B).