Why are insurers called carriers?

The top 10 property and casualty (P&C) insurance carriers in the United States, ranked by net premiums written according to industry data from A.M. Best, are led by State Farm Group.

Top 10 U.S. Insurance Carriers (P&C)

1. State Farm Group — The largest property, casualty, and auto insurer in the U.S., known for its large network of exclusive local agents.
2. Progressive Insurance Group — A top national carrier widely recognized for competitive auto rates and usage-based discount programs.
3. Berkshire Hathaway Insurance — A massive holding company owning major operations like GEICO alongside massive commercial lines.
4. Allstate Insurance Group — A major household name providing personal auto, home, and commercial policies.
5. Travelers Group — A leading writer across both personal auto/property and commercial lines of insurance.
6. USAA Group — A specialized provider delivering highly rated financial and insurance services dedicated to military members, veterans, and their families.
7. Liberty Mutual Insurance Cos. — A global carrier offering extensive personal and commercial property and casualty coverage.
8. Chubb INA Group — Noted for high-end property, casualty, and specialty insurance, including coverage for luxury homes and high-net-worth vehicles.
9. Farmers Insurance Group — A nationwide provider offering customizable auto, home, and business policies.
10. The Hartford Insurance Group — A prominent carrier specializing in small business insurance as well as personal lines.

An insurance carrier is the specific company that underwrites your policy, collects your payments, and pays out your claims.

How to Find Your Insurance Carrier

• Check your documents: Look at your physical or digital insurance card, policy declaration page, or billing statements.
• Look at the legal name: The carrier is the actual insurance company providing coverage, not the local agent or broker who sold it to you.
• Search state records: If you know your state, you can look up licensed companies using the Consumer Insurance Search provided by the National Association of Insurance Commissioners.

Common Examples of Insurance Carriers

• State Farm
• Allstate
• Progressive
• Geico
• UnitedHealthcare

There is no single "worst" auto insurance company, but major carriers like Allstate, Liberty Mutual, and Progressive frequently rank poorly in customer satisfaction and claim-handling reviews.

Major Insurers with Frequent Complaints

• Allstate: Often criticized by consumer advocates and attorneys for using strict claim-evaluation software (like Colossus) that can delay or lower payout offers.
• Liberty Mutual: Frequently scores low in consumer satisfaction surveys due to high rates of disputed claims and sudden rate increases.
• Progressive: Regularly cited by customers and repair shops for lowball vehicle damage evaluations and pushing for cheaper or repaired parts over replacements.
• State Farm: While massive in market share, it often lands in lower consumer tiers for aggressive claim-denial strategies.

Budget and Regional Insurers to Watch

• Low-Cost Non-Standard Insurers: Companies like Ocean Harbor, Direct General, and United Auto often rank lowest among personal injury attorneys because they offer very cheap rates but aggressively deny or contest valid claims.
• Bottom-Scoring Regional Brands: In annual satisfaction studies like J.D. Power's Auto Insurance Shopping Study, brands like Safeco and Mercury routinely score at the bottom.

Insurance companies make money through two main streams: underwriting income (collecting more in premiums than they pay out in claims) and investment income (investing the money they hold before claims are paid).

1. Underwriting (Collecting Premiums)

• The Core Model: Customers pay a fee, called a premium, to buy insurance coverage.
• Risk Calculation: Insurers use actuaries (math experts) to study risk. They price policies so that total collected premiums are higher than the total cost of claims and business operations.
• Underwriting Profit: If an insurer takes in $100 in premiums and spends $90 on claims and overhead, the remaining $10 is raw underwriting profit.

2. Investment Income and "The Float"

• The Float: Insurance works on a reverse business model: you pay upfront, and the company provides the service (paying claims) later. The money collected but not yet paid out as a claim is called the float.
• Reinvesting Cash: Insurers do not let the float sit idle. They invest these massive pools of cash into safe, interest-generating assets like government bonds, corporate bonds, and stable stocks.
• Profits from Returns: Even if a company barely breaks even on underwriting—or loses money during a bad year for natural disasters—its investment returns can generate major profits.

3. Other Revenue Sources

• Lapsed Policies: If a term life insurance policy expires or lapses before a claim is made, the company keeps 100% of the collected premiums as profit.
• Fees and Surrender Charges: Many policies charge administrative fees, rider fees, or penalties if a customer cancels early.
• Reinsurance: Insurance companies buy their own insurance (reinsurance) to protect against massive, unexpected disasters, which helps stabilize their overall financial health.

Oscar Health denied 25.3% of in-network claims in 2024, representing the highest denial rate among major national ACA marketplace health insurers.

Health Insurance Denial Rates

• Oscar Health: Denied 25.3% of marketplace claims.
• Molina Healthcare: Denied 22% of claims.
• Ambetter (Celtic): Denied 21% of claims.
• UnitedHealthcare: Denied 20% of claims (down from 33% the previous year).
• Kaiser Permanente: Recorded the lowest national rate at approximately 6%.

Homeowners and Auto Insurance Denial Rates

• Allstate and USAA: Frequently flagged by public reports and consumer data for closing roughly 40% to 50% of property and homeowners claims without payment in high-risk regions.
• State Farm: Reported home insurance denial rates exceeding 41% to 59% in catastrophe-heavy markets like Florida.