There were almost 2,500 casualty and property insurance companies on the market as of 2019. While some large insurance agencies provide coverage for millions of drivers across the country, others only offer coverage in a specific state or region. While large car insurance companies are more popular, small insurance companies can offer car insurance benefits.
Small auto insurance companies have many advantages
A small insurance company can offer auto insurance to certain drivers. A small insurance company offers many advantages over working with large companies. These are the top benefits of small car insurance companies:
Personalized customer service
Larger insurance companies often have better customer service. You will have a better experience dealing with claims adjusters because your agent will be more familiar with you.
Get more affordable rates
Because they don’t spend as much on advertising and staffing, small auto insurance companies may be able to offer lower rates. It is important to remember that this is not always true. You might also find that a local insurance agency will offer higher rates to customers than national insurance companies.
Supporting local businesses
Many drivers love working with local car insurers because they can support local businesses. They pay their premiums, and the money goes back to their community instead of to a large corporation.
Coverage that is specific
Local auto insurance companies may offer more specialized coverage. If a car insurance company only serves California drivers, for example, they may offer greater coverage limits for wildfire and earthquake damage.
A smaller company can offer car insurance rates
The rates of car insurance from small insurance companies can vary significantly. Although you may find low rates with small insurance companies it is not always a guarantee. Because they have a smaller customer base, and therefore less revenue, some small insurance companies may charge higher rates.
Below are two tables that compare insurance rates from smaller carriers and highlight premiums of the largest four carriers by market share. These premiums are averages and are based on sample quotes. Your actual rate may vary.
There are many ways to save money with a small auto insurer company
There are many ways to save money on your premium if you choose a smaller auto insurance company. Look for local auto insurance providers that offer discounts. You can save more money if you are eligible for more discounts.
Also, consider paying your annual premium all at once. This can often help you get a lower rate. Many insurance companies offer discounts if you sign up for automatic payments or paperless billing statements.
We recommend that you improve your credit score to help save money on car insurance. Poor credit drivers pay the highest rates in most states. Increasing your credit score can often be a good way to lower your rate.
Small auto insurance companies offer coverage options
The coverage options offered by any insurance provider, regardless of size, will be the same. All insurance companies offer the basic coverages, including collision, comprehensive, medical payment and personal injury protection (PIP), if you reside in a state with no-fault.
Small insurance companies often offer popular endorsements like roadside assistance, gap insurance, and rental car reimbursement. You may be surprised to find that smaller insurance companies offer fewer endorsements such as hybrid coverage or coverage for new cars.
Small auto insurance companies have disadvantages
Working with a smaller auto insurer has its disadvantages. First, smaller insurance companies tend to only offer coverage in a small area. This means that you need to look for local insurance providers in your area.
Small insurance companies often don’t have the latest technology and tools, such as a mobile app, or online claim reporting. It is possible that you will find some local auto insurance providers are more selective about your eligibility. This could make it harder to be approved for coverage.
Insurance companies in your area
It is important to note that the definition of small insurance companies does not fit all. A small insurance company can serve a whole region, such as the ones in our list, or it could only be able to service a very specific area.
Edison Insurance, for example, sells Florida coverage, Maine Coast Insurance Agency sells coverage across Maine, and Nia Insurance sells coverage within the Omaha, Nebraska, area.
Local insurance companies might be worth considering when you’re looking for the right insurance policy. If you are looking for good customer service and prefer working with an agent, we recommend that you look into local insurance companies.
Questions frequently asked
Which is the best auto insurance company?
Every driver will have a different experience with the best car insurer. It all depends on where you live, how much coverage you need, your financial situation, and what you are looking for in an insurance company. We recommend comparing providers to find the best car insurance company.
What is the cost of car insurance?
The average cost of car insurance in the United States is $565 per annum for a minimum coverage policy, and $1,674 for a full coverage policy. The actual rate you pay will depend on many factors, including your age, credit score and claims history.
What amount of car insurance do you need?
Nearly every state requires car insurance. You must have the minimum insurance required by your state in order to drive. Personal liability insurance will be required, which includes bodily injury and property damages liability coverage. Personal injury protection (PIP) is required if you reside in a state with no fault.