Are small car insurance companies a good option?
Small car insurance companies often offer personal customer service and specialty policies that large companies can't match, but it usually comes with a slightly higher price tag.
Free Car Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
Licensed Insurance Agent
UPDATED: May 5, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: May 5, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Small insurance companies can be a good option, depending on your car insurance needs
- The smaller companies can offer one-on-one service and specialty coverage that the larger companies don’t carry
- Whether small insurance is a good option for you depends on your individual insurance needs
When you’re shopping for car insurance, your first instinct is to go to an insurer you’ve heard of. (read our “How are car insurance companies the same?” for more information).
You have a tendency to just pick up the phone and call one of those insurance companies that run nationwide television commercials and see what they have for you.
Enter your zip code now to compare multiple car insurance quotes for FREE.
Certainly, there are a lot of upsides to calling one of the big companies, and there’s really nothing wrong with this approach. People who buy their policies from major providers like Geico and Nationwide do so for a number of reasons.
Security
Small insurance companies don’t typically receive an A+ rating from A.M. Best.
You don’t get to be one of the safest and most secure insurance companies around without earning billions of dollars in revenue, and that’s something that the small companies simply cannot match.
For many drivers, the conversation ends right there. When you buy insurance, you do need some degree of security.
For people who want to make absolutely certain that their insurance policy will be honored, a big insurer certainly does have more money to throw around.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
24-Hour Service
Many large insurers can afford to keep people on the phone 24 hours a day, 7 days a week so that customers always have somebody to speak with.
Small insurance companies are often made up of fewer people and simply cannot offer that kind of around-the-clock service.
This might be a problem if one of your main concerns is excellent customer service.
Accessibility
Larger companies usually have a variety of options for contacting them and making a claim from the website to email to toll-free numbers.
Smaller companies rarely have as many options as large companies when it comes to contacting them, buying a policy, and making claims.
If these three factors are of the utmost importance to you, then there’s certainly no reason not to go with a large insurer. However, small insurance companies have plenty of positives as well.
Specialty Insurance
If you need insurance in a highly specialized field such as specific types of commercial trucking then you might not have any choice but to go with a small insurer.
When you are looking for specialty car insurance, chances are you’re going to find a small insurance company that caters to you.
Larger insurance companies generally offer a wide range of policies, but they can’t afford to cover everything.
If you’re an individual with bad credit looking to insure a three wheeler or if you’re a hobbyist looking to insure a custom-built vehicle, the larger insurers simply cannot afford to set up a whole office of experts devoted solely to your area of auto insurance.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Rates
In many industries, larger companies can offer more competitive rates because they have access to greater resources and a wider customer base.
Insurance is a business where the small guy has a shot at staying competitive with his pricing.
In fact, if you’re only looking for minimal coverage, then chances are you’re going to wind up getting the very best quotes from smaller insurers who stay competitive in order to give themselves an advantage over the big names.
These cheap policies may not always be robust, but small companies have less overhead, fewer employees and can usually afford to charge less for small policies.
Personal Attention
If you call Geico 12 times, you’ll probably talk to 12 different people.
With a small insurer, you may wind up on a first-name basis with the person you hand your monthly check to. This personal service is at the root of the small insurance company.
A small insurer cannot offer the same policies as the larger insurers, they don’t have national advertising and they can’t cover everything from motorcycles and four wheelers to RVs and boats, but they can offer something that a big insurer can’t, and that’s personalized attention.
Big or Small: Finding the Company That’s Right for You
If none of the points listed above have helped you choose, keep both large and small companies in the running when you go looking for car insurance.
The fact of the matter is that large companies have a lot of advantages over small companies and small companies have a lot of advantages over large companies. Both offer their own appeal to a different type of driver.
It should become clearer which side of the fence you fall on as you compare prices and options.
At the very least, by searching through both large and small insurance companies for the very best policies and prices, you’re guaranteed to find the provider who best suits your needs.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Case Studies: Are small car insurance companies a good option?
Case Study 1: Personalized Attention and Specialty Coverage
Sarah owns a vintage car and needs insurance that caters to her unique vehicle. She decides to approach a small car insurance company specializing in classic and specialty cars. The company provides personalized attention, understands the specific needs of Sarah’s vehicle, and offers a tailored policy to ensure adequate coverage.
Case Study 2: Competitive Rates for Minimal Coverage
John is a young driver looking for minimal coverage for his older vehicle. He decides to compare quotes from both large and small insurance companies. To his surprise, the small insurers offer more affordable rates for the minimal coverage he needs. John realizes that smaller companies often have less overhead and can offer competitive prices for specific policy types.
Case Study 3: Accessibility and 24-Hour Service
Mary frequently travels for work and needs a car insurance company that provides 24-hour customer service. She chooses a large insurance company known for its accessibility and round-the-clock support. Whenever Mary encounters an issue or needs assistance, she can easily reach out to a representative at any time.
The Bottom Line
For readers who only want a simple answer, here it is: Yes, small car insurance companies are a great option.
But they’re not perfect for everybody.
Somebody who is insuring a fleet of commercial vehicles is probably better off looking for an insurance provider who can easily cover such a large order while somebody insuring a specialty vehicle is better off looking to the personalized attention offered by a small insurance provider.
There’s no reason to put either side out of the running, as they both offer their own unique advantages and disadvantages.
To receive multiple car insurance quotes in minutes, just enter your zip code below!
Frequently Asked Questions
Are small car insurance companies a good option?
Yes, small car insurance companies can be a great option for certain individuals. They often provide personal customer service and specialty policies that larger companies may not offer. However, their prices may be slightly higher compared to larger insurers.
What advantages do large car insurance companies have?
Large car insurance companies typically have a higher financial security rating, which ensures that they can honor insurance policies. They also offer 24-hour customer service and have a variety of options for contacting them. Additionally, they often have competitive rates due to their resources and customer base.
What advantages do small car insurance companies have?
Small car insurance companies may specialize in niche areas and provide specialty insurance that meets specific needs, such as commercial trucking or unique vehicles. They may also offer more personalized attention and service. Small insurers can sometimes provide more affordable rates for minimal coverage.
How do I choose between a large and a small car insurance company?
Consider your priorities and needs. If financial security, 24-hour service, and accessibility are crucial, a large insurer may be the right choice. If you require specialty insurance, desire personalized attention, or are seeking affordable rates for minimal coverage, a small insurer may be a better fit. It’s recommended to compare prices and options from both large and small insurers to find the provider that suits your needs best.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.