Commercial auto insurance is essential for businesses that rely on vehicles for their operations. This type of insurance protects against financial losses from accidents, theft, and other incidents involving company vehicles. It covers property damage, liability for injuries, and medical expenses.
In the United States, several companies lead the market in commercial auto insurance. According to recent data, Progressive Insurance tops the list with a market share of 11.9%, writing direct premiums of $10.8 billion. The company reported a remarkable increase in net income for 2024, reaching $8.5 billion, a significant rise from $3.9 billion in 2023. This growth was attributed to improved underwriting and investment income, with total net premiums climbing to $74.4 billion. Progressive also boasts a strong underwriting performance, achieving an 88.2% net combined ratio.
Following Progressive, Travelers Group holds a market share of 5.85%, with direct premiums of $3.86 billion. The company reported a record core income of $5 billion in 2024, reflecting a 64% increase from the previous year. Travelers also showed strong underwriting margins, despite facing record catastrophe losses.
Old Republic International comes in third, with a market share of 5.34% and direct premiums of $2.95 billion. The company reported a pretax operating income of nearly $1 billion in 2024, marking a 6.5% increase from 2023. Old Republic is known for its specialty insurance products, including extended protection plans for vehicles.
Zurich Insurance Group ranks fourth with a market share of 4.09% and direct premiums of $2.29 billion. The company reported a 5% increase in business operating profit, reaching $7.8 billion in 2024, driven by growth across its core businesses.
Auto-Owners Insurance holds a market share of 3.63% with direct premiums of $2.10 billion. Despite facing challenges in 2024, including inflation and weather-related losses, the company maintained a strong financial position with a policyholder surplus of nearly $14.3 billion.
State Farm Group, with a market share of 3.2% and direct premiums of $2.01 billion, made a significant turnaround in 2024, reporting a net income of $5.3 billion compared to a net loss of $6.3 billion in 2023. This improvement was largely due to a reduction in underwriting losses.
Other notable companies include Erie Insurance, Liberty Mutual, Berkshire Hathaway, and Acuity Insurance. Each of these firms offers a range of coverages and features, catering to the diverse needs of businesses.
As businesses consider their options for commercial auto insurance, understanding the market leaders and their offerings is crucial. The best insurance policies not only meet state requirements but also provide comprehensive protection for drivers and vehicles.