In 2012, the net premiums for liability insurance in the U.S. were $103,153,523,000. For those with trouble with that many commas and zeros … that is more than $100 BILLION dollars. This was a 2.8% increase from the previous year. In the same year, the net premiums written for just collision and comprehensive insurance increased 2.5%, to a staggering $64,494,066.
The top 10 insurance companies in the United States
- State Farm Mutual Automobile Insurance
- Allstate Corporation
- Berkshire Hathaway (Geico)
- Progressive Corporation
- Farmers Insurance
- USAA Insurance Group
- Liberty Mutual
- Nationwide Mutual Group
- Travelers Companies
- American Family Mutual.
Source: Insurance Information Institute
With their incredible market leading premiums revenue, State Farm spends about $800 million on advertising each year. This is second only to Geico’s $1 billion each year. Source: Wall Street Journal
Premiums and Market Share
Below is the list again, with each company’s total direct premiums and market share.
- State Farm – $32,101,907,000; 18.4%
- Allstate – $17,478,872,000; 10%.
- Berkshire Hathaway (Geico) – $16,748,872,000; 9.6%
- Progressive – $14,438,111,000; 8.3%
- Farmers – $10,279,070,000; 5.9%
- USAA – $8,447,461,000; 4.8%
- Liberty Mutual – $8,263,737,000; 4.7%
- Nationwide – $7,136,179,000; 4.1%
- Travelers – $3,393,014,000; 1.9.
- American Family – $3,300,454,000; 1.9%.
Is My Settlement Offer Fair?
Every one of the top ten car insurance companies did more than $3 billion in premiums. The largest, State Farm, did more than the GDP of may small countries. Furthermore, two spent nearly two billion in advertising combined.
I’m not sure about you, but when a company is spending a millions or billions on advertising and they are lowballing me on my settlement, I get upset. Think about it, they are advertising a product – financial recovery in the event something happens. And it’s this very product they don’t want to deliver on. When you get a settlement offer from an insurance company, you have to ask yourself: Is my settlement offer fair? Is the insurance company giving me what my case is worth?
To see what your case is really worth, check out the car accident calculator.