A recent article on al.com lists the Top 10 auto insurers in Alabama. It’s an interesting article. You can read it HERE. According to the research, these are the Top 10 auto liability insurance companies in Alabama by market share. They are:
- State Farm (22.7% market share)
- Allstate (14.9% market share)
- Alfa (13.1% market share)
- Progressive (11.6% market share)
- Berkshire Hathaway (which owns GEICO) (10.9% market share)
- USAA (7.3% market share)
- Farmers (2.4% market share)
- Liberty Mutual (2.3% market share)
- Travelers (2.2% market share)
- Nationwide (1.7% market share)
State Farm Continues To Hold The Top Spot
On a nationwide basis, the research indicates State Farm is the largest provider followed by Progressive and then GEICO. It should come as no surprise to anyone that State Farm holds the top spot in Alabama. State Farm has held that spot for a very long time. As a lawyer that represents people injured in Alabama car crashes, I’ve also seen a significant increase in Alabama claims involving Progressive and GEICO which makes me believe their market share has been increasing in recent years. Around Huntsville, we also see many claims involving USAA which insures drivers with a military background.
Drivers Have Lots Of Insurance Choices
The market is NOT dominated by one majority insurer. If you are a consumer, it’s usually a good thing when no single provider dominates the market. A little healthy competition is better for prices. While that’s also true in the auto insurance market, it’s important to keep in mind that price is not the only factor. I have VERY STRONG opinions as to which companies on the list are better (and worse) at caring for their own insureds. As much as I want to provide that commentary, I’ll avoid doing so in this blog. My suggestion is this — Don’t choose solely on price. Definitely don’t choose based on pitch phrases. Anybody can claim that you are in good hands with them! Talk to people you trust. Some insurers regularly FAIL their own insureds in moments of crises. If you are involved in a car accident, you don’t want your own insurance company to let you down! If you are involved in a car wreck, you want a company that will handle your Alabama claim efficiently and fairly.
Minimum Limits Policies Are A Frequent Problem For People Injured In Alabama
Alabama currently ONLY requires drivers to carry a minimum of $25,000 in liability coverage. Think about that. Another driver runs a red light and hits you. You are injured. You go to the local emergency room. Even a minor injury might consume the entire $25,000 in coverage of the at-fault driver. A huge number of Alabama drivers ONLY carry that required minimum. What should you do to protect yourself and your family? Make sure that you purchase sufficient uninsured / underinsured coverage to protect your family. Talk to your insurance agent about this issue.
In Alabama, on a weekly basis, we must advise people injured by an at-fault driver carrying only the minimum $25,000 liability limits. I don’t know the percentage of minimum limit policies issued by each insurer. So, I cannot speak to exact numbers. But, I can say that I rarely see a minimum limits policy with State Farm, Alfa or USAA.
At the same time, many cases I review where the at-fault driver has Progressive or GEICO involve a minimum limits policy. Based on the percentages of market share, those two companies control over 22% of market share. If most of their policies are minimum limits, that’s a huge number of Alabama drivers with the bare minimum in coverage. Don’t forget, many other drivers using Alabama roadways carry NO insurance. Lets’ face facts — Any time you are on an Alabama roadway, it is likely that drivers around you carry NO liability insurance or just the bare minimum in coverage. For these reasons, you need to purchase sufficient uninsured / underinsured coverage.
Non-Alabama Adjusters Are A Claims Issue
I think out-of-state adjusters is a big issue. When I first started practicing law (many years ago), the biggest auto insurers had in-state adjusters. These adjusters knew the local counties, the local lawyers, and the unique aspects of Alabama law. They were better suited to discuss, resolve, or even dispute, claims. Many insurers now use adjusters that live and work far away from Alabama. Are those out-of-state adjusters familiar with unique legal or local issues that may impact a claim? Probably not.
In recent years, I’ve had to file lawsuits simply because an out-of-state adjuster did not understand a unique aspect of Alabama law. In many of those cases, a local adjuster would have known to properly pay the claim from the start.
What does this mean for you? If you are injured in a car wreck, you need a local lawyer who understands Alabama personal injury law. You need a local lawyer who understands unique issues in northern Alabama communities like Huntsville, Athens, Decatur or Scottsboro. An experienced local lawyer, not an advertising firm hundreds of miles away, is much better suited to prepare your claim.
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At the Blackwell Law Firm, we focus exclusively on serious Alabama personal injury cases. Our lawyers have deep connections to the local communities of northern Alabama. We have prepared and tried car accident, truck accident and work-related, injury claims in counties across Alabama. If you have questions about a personal injury issue, ask us. We are happy to discuss your questions. Our consultations are always free and confidential.
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