Automobiles have been part of American society for over a century. Today, they are an essential part American life. Although mass transportation systems like buses, subways and metros are available in large cities, the majority of Americans still use automobiles to get to work. The Federal Government allowed each state to create its own automobile insurance laws. This gave them the ability to decide under what conditions an automobile could be used within their state. It is vital that Americans have auto insurance to drive safely and legally in the United States.
Most people are able to find automobile insurance companies within 25 miles of their home. While there are large car insurance companies such GEICO and Allstate that try to get larger in order to control this part of the economy, there are others that are smaller and operate within their own state borders. We will be focusing on the “top dogs” of the auto insurance industry by discussing their history, offering and how they have grown in popularity over the years.
Esurance: Although the company was founded in 1999 via the Internet, it has seen great growth over the years. The company was founded in four states, and quickly acquired by the White Mountains Insurance Group. Esurance currently insures approximately 85% of all drivers in the country and continues to expand their coverage to include 28 states. This company has been devoted to providing customers with the best rates and the most coverage since its inception. They are proud of their customer service and the fact that they have customer service agents available 24/7, 7 days a semaine. The company is the first to offer its products online. This makes it easier for customers to obtain quotes and enroll right from their office. They now offer more than just automobile coverage.
GEICO: GEICO is one of the most prominent American automobile insurance companies. They are best known for their cute gecko that speaks in a British accent and for their caveman commercials which emphasize the fact that online quotes can be obtained “so easily that a caveman can do” The Government Employees Insurance Company, GEICO was established in 1930 when the Great Depression was still raging. Lillian Goodwin and Leo Goodwin established the company in Texas to lower premiums for selected customers. The company gained more fame throughout the United States. In 1936, they established operations in Washington D.C. There are an estimated 7,000,000 members and 21,000 associates in 12 major locations across the country. This remarkable growth is due to three main elements of GEICO: outstanding coverage, low prices, and exceptional customer service.
Allstate: The company’s motto is “You are in Good Hands”. It strives to be the best, giving customers peace of mind and improving their quality life through the management of their risk. It was established in 1931, but it became a publicly traded company in 1993. Allstate, based in Northbrook in Illinois, is one of the most prominent insurers in urban and rural areas. It has offices across the country. They take pride in the numerous awards they have won over the years, as well as the fact that they support auto and highway safety reforms such seat belts and air bags. Allstate Corporation, a Fortune 100 firm with assets of $157.5 billion, employs nearly 70,000 professionals. 59% of them are women and 30% are minorities. They offer insurance products to approximately 17 million vehicles. One in nine cars on the road is insured by them.
SF Insurance George Jacob Mecherle (retired farmer, insurance salesman) founded the Company in 1922. The company was founded by George Jacob Mecherle, a retired farmer and insurance salesman. He knew that farmers drove far less than the average customer. SF Insurance is a North American auto insurance company that insures more cars than any other. It is available in all 50 US states as well as in Canada. When they sponsored CARS, a Pixar film, in 2006, the company was the first to do so. Since then, they have expanded their coverage to include property, homeowner, life and property insurance. They have over 17,000 agents, 68,000 employers and serve over 76,000,000 customers with every type of insurance. They are A+ rated and are 31st on Fortune 500’s list of the largest companies.
Nationwide: Another top dog in American automobile insurance. In 1925, the Ohio Farm Bureau Federation founded the company to offer low-cost insurance to rural drivers. Nationwide has grown from a small company providing automobile insurance to Ohio farmers to an enterprise that now holds $157 billion. Nationwide offers more than auto insurance. It also provides financial services. Nationwide is known for their excellence in customer service because they have many associates with diverse skills, backgrounds and experiences that make them more compatible with their customers. The Fortune 500 magazine ranks the company at number 104. It employs 36,000 people. It is also worth noting that Nationwide ranks 6th in America for auto insurance, based on A.M. Best’s premium ratings.