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Will State Farm Lose Its US Auto Insurance Dominance To Geico?

 Friday, January 17, 2020

 Live Insurance News

If current trends continue, the United States will have a new top vehicle insurer by 2022. For decades, State Farm has held onto the top spot among US auto insurance companies.

That said, if recent trends keep up as they have been, it won’t be long before it loses its crown to a much younger rival. State Farm has suffered business losses as a result of several steep rate hikes in recent years.

The leader in US auto insurance has suffered steep losses after a spectrum of notably large rate hikes in both 2016 and 2017. This brought State Farm’s national market share down to 17 percent by 2018. It was the lowest point the Bloomington-based insurance giant had struck in over 20 years.

At the same time, Geico has been steadily climbing its share of the American car insurance market.

By 2018, it was holding 13.4 percent, not far behind State Farm, particularly when considering that it was rising while the latter’s share was dropping.