State Farm Leads U.S. Auto Insurance Market in 2025 with $68B Premiums

The National Association of Insurance Commissioners (NAIC) has released its 2025 Market Share Data Reports, highlighting State Farm as the leading insurer in the U.S. auto insurance market for the third consecutive year. According to the report, the private passenger auto insurance sector accounts for over $344 billion in direct premiums written nationwide. State Farm contributed approximately $68 billion in direct premiums written and earned nearly $66 billion during this period, maintaining a substantial lead over the second-largest insurer, Progressive Group.
State Farm's growth is reflected in its increased market share, rising to 18.9% in 2025 from 18.3% in the previous year. The company's direct premiums written grew significantly from about $58 billion in 2024 to nearly $68 billion in 2025, indicating expanding business volume within the highly competitive U.S. auto insurance industry.
In regulatory and operational developments, State Farm announced it will transition its auto glass claims administration from LYNX Services to Safelite Solutions starting July 1. This move is noteworthy due to Safelite's position as one of the largest auto glass service providers, sparking discussion within the industry about potential impacts on job rotation systems under State Farm's National Glass Program.
Some industry stakeholders, such as auto glass service providers reliant on State Farm business, have expressed concern that the change may disrupt existing claims handling practices and job distribution patterns. These operational changes underscore evolving insurer-provider relationships and their implications for service networks and claims management efficiency.
Overall, NAIC's data underscores the dominance of State Farm in the U.S. private passenger auto insurance market, marked by significant premium growth and strategic adjustments in claims administration partnerships. These trends reflect broader market dynamics, including insurer consolidation, service network management, and competitive positioning in auto insurance underwriting and claims operations.