Auto Premiums Drop, So Take Another Look

At the same time, the increasingly litigious environment in the U.S., combined with larger jury awards, means people are more likely to sue in the event they are seriously injured in a car accident.

These are all reasons to insure your automobile with a financially strong company. Our rating methodology takes into account many factors, including an insurer's level of capitalization, profitability trends, geographic diversifications, adequacy of its loss reserves, concentration of business by line of business and many other factors.

The top three automobile insurance companies, based upon the volume of direct premiums written, on our recommended list are: State Farm Mutual Automobile Insurance, Allstate Insurance (ALL Quote) and GEICO General Insurance. All three earned ratings of B+ (good financial strength) or higher.

The highest-rated insurers on our list have scored well on all of the components we use to measure financial strength. The highest-rated insurers in this group, those in the A-rated category, tend to be well diversified both geographically and by line of business. These companies are also very well capitalized and consistently profitable.

A few of the companies on the list also offer the mutual form of ownership, in which the company is owned by the policyholders as opposed to the stockholders. Mutuals have historically been run to build financial strength and offer reasonably priced products, as opposed to stock companies, which are established to benefit shareholders in the form of a higher stock prices and/or dividends.

The nation's 10 largest automobile writers are below. Many write business in multiple states and may write in yours. Contact them directly or through their respective state insurance department to check them out. The ratings section of our Web site can also help you locate a particular carrier.

10 Biggest Auto Insurers Volume of direct premiums written in 2006
	Company Name	Home State	Strength Rating	Automobile Premium ($ US)
1	State Farm Mutual Automobile Insurance	IL	B+	28,042,815,000
2	Allstate	IL	A-	8,366,619,000
3	Geico General Insurance	MD	B+	4,555,646,000
4	Government Employees Insurance	MD	B+	3,348,722,000
5	United Services Automobile Association	TX	A+	3,313,033,000
6	Geico Indemnity Insurance	MD	A-	2,578,224,000
7	USAA Casualty Insurance	TX	A+	2,156,013,000
8	Interins Exch of the Automobile Club	CA	A+	1,903,784,000
9	California State Auto Association	CA	A-	1,546,390,000
10	Commerce Insurance	MA	B+	1,442,687,000
Source: Regulatory Filings