Top Ten Insurance Companies in the United States

There are a number of companies, such as A.M. Best and Standard & Poor’s, who rate insurance providers on various financial strength aspects in order to help consumers make more informed decisions (insurance company ratings).
If you’re in the market for insurance, you should look for an organization that’s been around a while, with a proven ability to repay claims if you’re involved in an accident.
After all, it’s a lot more likely an insurer will pay your insurance claim if they’re still in business…
Each state also has a department of insurance that monitors the financial status of insurance companies and regulates their practices.
That said, here are the the top insurance companies in the United States, according to TopRatedInsuranceCompanies.com:

1. Allstate Insurance Company
 
2. State Farm Insurance Company
 
3. Prudential Insurance Company
 
4. Travelers Insurance Company
 
5. Fidelity Insurance Company
 
6. MetLife Insurance Company
 
7. Farmers Insurance Company
 
8. AIG Insurance Company
 
9. MassMutual Insurance Company 

10. The Hartford Insurance Company

By “top,” they mean the largest insurance companies, not necessarily the best insurance companies. Remember, bigger isn’t always better, and in many cases, could mean more red tape and hassle when dealing with them.
The insurance companies listed above may offer a combination of property, casualty, life, and/or health insurance coverage, along with an array of financial products as well.
Insurance companies, much like other large corporations, don’t always specialize in just one thing. However, they do tend to stick to insurance and financial services.
There are thousands of insurance companies out there to choose from; some focus on only one type of insurance or one specific region of the United States.
It’s not necessary to purchase an insurance policy from one of the companies listed above to ensure you receive adequate coverage or service.

In fact, it’s recommended that you obtain insurance quotes online and consult with an independent insurance agent to ensure you receive the right coverage at the lowest price.

HOW PROPERTY INSURANCE IS CALCULATED

A look at factors that affect your insurance rate

Several factors are taken into account to calculate your property insurance rate. Some apply only to homeowners, but others are a factor whether you own a home or condo, or rent a place.

Insurance companies consider these factors to estimate the likelihood that you – or others in similar circumstances – will make a claim, and what that claim will cost.

These are some of the main things that will affect the cost of your property insurance.

    Location, location

    Fire hydrant/fire station proximity

    Amount and types of coverage

    Amount of your deductible

    Security features

    Other factors for homeowners

    Replacement cost

    Heating

    Electricity

    Pipes

    Wood stove

    Roofs

    Other considerations

Location

Whether you own or rent, where you live makes a difference.

Insurance companies track claims by geographic location and use the information to adjust premiums accordingly.

Based on past experience in your neighbourhood, they can determine how likely it is you will need to make a claim.

If you live in an area with a high incidence of break-ins or vandalism, for example, your rate will be higher than what you would pay in an area where those things are rare.

Fire hydrant/fire station proximity

 Because fire is a major concern, it’s an advantage to live near a fire hydrant or fire station.The closer you are, the better the chances of saving your property in the event of fire.In urban areas, proximity usually isn’t a problem. But in more remote or rural areas, the distance may be greater, influencing the cost of your insurance.

Amount and types of coverage 

The higher the amount of coverage you purchase, the higher your premium will be.

The type of package you choose – Comprehensive, Standard or Broad – will also affect the cost of your insurance.

Insurance coverage for a condo owner will cost more than coverage for a tenant.With a condo, your policy may have to cover your liability exposure for shared or common areas of the structure, which adds to the cost of insuring it.Optional coverage for specific items like a bicycle, or jewellery, will also mean a higher premium.

Amount of your deductible

A standard deductible might be $500.If you choose a higher deductible ($1,000, for example) your insurance company may reduce your premium.

Security features

An alarm system, smoke detectors, carbon monoxide detectors or other security features will generally get you a discount and help reduce your insurance premium.

Other factors for homeowners

If you own a home, these are some of the other variables that may affect what it will cost to insure your property.

Replacement cost

 One of the biggest factors is the size of your house. The bigger your house and the more you have in it, the more it will cost to replace everything.

Apart from the square footage, the quality of construction may also be a factor. 

Heating 

With oil heating, you may have to pay more than you would with a forced-air gas furnace or electric heat.

The risk of leaks with oil tanks increases the potential for damage to your property as well as the potential for environmental hazards.

Depending on the age and condition of your oil tank, you may be encouraged to replace it.

Electricity

A variety of factors associated with your electrical system can affect the risk of fire and, with it, the cost of insuring your property.Breakers pose less of a risk than fuses.

 If the flow of electricity into your home is less than 100-amps, it increases the risk of overloading and fire.

Older types of wiring can also raise the level of risk, particularly if the wiringhas deteriorated.

Pipes

Lead or galvanized pipes are usually found in older plumbing, which increases the risk of cracking, leaking or other damage.

Copper or plastic pipes are considered less of a risk.

Wood stove

Wood stoves can pose an increased risk of fire.

Older model wood stoves, especially if they have not been correctly installed or maintained, are a common source of house fires and carbon-monoxide poisoning.

Roofs 

Roofs that are older than 20 years increase the potential for leaks and other damage.

Some insurers will pay only depreciated values for roofs that are near the end of their service life.

Other considerations

 How you use your home, as well as some structural features, can also affect your insurance cost. Here are a few examples:

If you build or plan to build a rental unit into your home.

If you decide to operate a business from home.

If you make any other major changes to the structure or how it is used.

If you have other structures on your property (a swimming pool, pool house, guest house or storage shed) that are worth more than 10% of the total insured value of your home.

  

Finally, here are a couple of things that normally do not affect the cost of your property insurance:

The type of appliances (gas or electric) typically does not affect the cost of your home insurance

The exterior (brick or aluminum siding) is usually not a factor in calculating premiums, however, it is a factor when calculating the building replacement cost (i.e., the cost to rebuild with materials of like kind and quality, if the building were destroyed).