Several Personal Auto Insurances in U.S. is dominated by six companies. Accordingly these six companies top the Vehicle Service Contracts industry and those offering Auto Insurance policies.
The six companies are the Allstate, State Farm, GEICO, Farmers, Progressive, and Nationwide. They were named after their good performance in their own field of specialization with it comes to their service rendered to their customers.
State Farm is a mutual company possessed by its policy holder accounts for the highest share with 17.8%. AllState which sells insurance and non-insurance products as well is behind with 11%. GEICO’s share is 7.7% which earned it the third rank. GEICO is said to be owned by Berkshire, Hathaway Inc. Right tailing it is Progressive, popularly known with its passenger car, ATV, snowmobile and RV with 7.2%, while Farmers and Nationwide rank fourth and fifth with 5.5% and 4.7% respectively. All in all these six companies were able to get a total of 53.9% making them the top performer in giving premium in 2008 while other companies accounted for 46.1 %.
It was further revealed that there is a correlation between those offering Vehicle Service contracts and those offering Auto Insurance policies to their clients. Unfortunately, there is only a single company that offers both services in which credit is given to Farmers Zurich. This made it clear that it is a major player in those two fields. AllState and Nationwide companies are also great in Vehicle Contract Service; however, it seems that they are not yet popular to the clients. GEICO on the other hand, markets its insurance policies to their customers but sad to say, it is not catered for every of their client. It is only available to some as a form of affability. State Farm decided not to involve itself in this part together with Progressive.
Accordingly, all six companies have their own unique way of convincing their customers. It was learned that Progressive and GEICO sell their products through the phone or internet better than employ other methods. While they can convince more with this scheme, accordingly a better option is to sell with the help of an F&I manager. Other companies do the traditional way of pushing insurance agents to sell policies in their behalf. This they believe they could convince more customers to fall into their products. After all, it is the encouragement of the trader which makes the sale possible according to them.
Meanwhile, customers are worried if auto insurance dealers are legit or not as report reveals that some may use fictitious names and do not reveal their address but rather they are hiding behind post office boxes or mail drops. But accordingly, this problem is being addressed.