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Nitat Termmee/Getty Images April 12, 2022 Elizabeth Rivelli is a contributing insurance writer for Bankrate and has years of experience writing for insurance domains such as The Simple Dollar, Coverage.com and NextAdvisor, among others Angelica Leicht is an insurance editor on the Bankrate team. She is truly passionate about helping readers make well-informed decisions for their wallets, whether the goal is to find the right comprehensive auto policy or the best life insurance policy for their needs. Bankrate logo The Bankrate promise
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation of how we make money. Our content is backed by LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most — price, customer service, policy features and savings opportunities — so you can feel confident about which provider is right for you. We guide you throughout your search and help you understand your coverage options. We provide up-to-date, reliable market information to help you make confident decisions. We reduce industry jargon so you get the clearest form of information possible. All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure we’re putting accuracy first. Bankrate logo Editorial integrity
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Bankrate logo Insurance Disclosure
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. As of 2020, there were insurance companies in the U.S., according to the National Association of Insurance Commissioners. These companies, which come in all shapes and sizes, offer auto, home, life insurance and other related insurance products to consumers who need to insure themselves against losses. Thanks to these numerous options, you get to choose between obtaining car insurance coverage from a or a smaller provider. While larger companies may be the more popular route, it may benefit you to take a close look at what small auto insurance companies can offer. Compare rates and save on auto insurance today! Get quotes Close X RatesRates keep going up in 2022. Compare rates and save on auto insurance today! Get quotes Close X This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More RATE INCREASE ALERT Rates increased up to 12% this year
Shop for a better rate before you renew your current policy. This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare auto insurance rates
Answer a few questions to see personalized rates from top carriers. Save on auto insurance with quotes from trusted providers like: Drivers switch & save an average of $750+/year Arrow Right Are you overpaying for auto insurance? Arrow Right Safe drivers choose Allstate Arrow Right Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. See more providers in Choose from insurers in Show More For many people, there can be some advantages to choosing a small insurance provider, such as the potential for better or more personalized customer service. And, while smaller auto insurance companies sometimes have higher , that isn’t always the case. For example, Erie, a regional provider operating in 12 states, has an average annual rate of $1,321 for , according to Bankrate’s research. On the other hand, Allstate, one of the largest providers, has an average full coverage rate of $2,438 per year. Plus, there can be other perks to purchasing an auto insurance policy from a small company. Advantages of small auto insurance companies
For certain drivers, purchasing an auto policy from a small insurer is a good option. Working with a small insurance company has several advantages compared to working with a large insurance company. Here are some of the most significant upsides to small car companies: Personalized customer service
Small insurance companies sometimes have better customer service than large insurance companies. More importantly, the service might be more personalized, so you could have a better experience with claims adjusters. More affordable rates
Some small auto insurance companies can offer because they do not spend as much money on staffing and advertising. However, it is important to note that this is not always the case. It is also possible that a local insurance company will offer higher rates than a national insurance company. Supporting a local business
One of the main reasons many drivers like working with local car insurance companies is that they can support a local business. The money they pay in premiums goes back into their community, as opposed to a huge corporation. Specialized coverages
If you choose a local auto insurance company, you might be able to get more specialized coverage. For example, if you buy car insurance from a company that exclusively serves California drivers, they might offer higher coverage limits for earthquake or wildfire damage. Disadvantages of small auto insurance companies
While small auto insurance companies may offer unique benefits to drivers, there could be a few disadvantages of choosing a smaller company to insure your car. The disadvantages of choosing a small auto insurance company could include: Limited coverage area
Small insurance providers are often limited to offering insurance in specific coverage areas, whereas most large insurance providers can offer coverage to customers nationwide. For example, offers car insurance policies in just six states, while is only available to drivers in Alabama, Georgia and Mississippi. When shopping for personalized insurance rate quotes from small insurers, it can be helpful to start by ensuring that the company serves your state. Technology may be lacking
While large insurance carriers typically offer the most up-to-date technology, from intuitive mobile apps to websites with personalized quotes and online claims features, smaller companies may not. With smaller insurance companies, you may not get access to a mobile app or an online platform to report and track claims online. That may be fine for drivers who are comfortable with the more manual claims or quote process, but could be a deterrent for someone looking for the most advanced technology from their insurance provider. More picky with eligibility
Some small insurance companies will only offer auto coverage to certain niche drivers, customers or members, which means that some people may not be eligible to buy insurance through these companies. For example, a smaller carrier may not insure drivers with poor credit or drivers who have had recent at-fault accidents. Or, if you have other blemishes on your driving record, you may find the rate quoted by smaller companies is much higher than what you’re quoted by a large carrier without limited eligibility. Car insurance rates with a smaller company
Car insurance rates from small insurance companies differ significantly. You can find cheap rates from small insurance companies, but it is not a guarantee. Some small insurance companies charge higher rates because they have a smaller customer base and less revenue. The two tables below highlight insurance premiums from five of the largest carriers by market share and compare rates from some smaller carriers. Remember that these are averages based on a sample quote, so your actual rate will vary. Average rates from largest auto insurance companies
Large auto insurance companies Average full coverage premium $1,447 $1,297 $1,397 $1,561 $2,438 Average rates from small auto insurance companies
Small auto insurance companies Average full coverage premium $1,010 $1,321 $1,305 $1,495 $1,612 Ways to save with a small auto insurance company
If you go with a small auto insurance company, there are some ways you can potentially save money on your premium. Here are a few suggestions: Look for discounts: Research local auto insurance companies that offer discounts you can take advantage of. The more discounts you qualify for, the more money you can save. Pay in full: Consider paying your annual premium in total, which can usually help you get a better rate. Some insurance companies even offer savings if you enroll in automatic payments or sign up for paperless billing statements. Build your credit score: Work on improving your credit score as a way to save money on car insurance. Drivers with a poor credit score pay the highest rates in most states, so improving your credit is often an effective way to get a cheaper rate. Keep in mind that some states do not allow insurance companies to factor in your credit score when calculating your rate. Participate in a telematics program: Many insurance providers will lower your rate if you participate in its . Most telematics programs use an app or device to track your driving and reward you for being safe or driving fewer miles. Bundle your policies: If you have two or more insurance policies, consider bundling them with the same company to save money. Many small insurance companies offer a discount for bundling your , renters or condo insurance policy. Coverage options with small auto insurance companies
Whether you choose a small insurance company or a large provider, the basic auto insurance coverage options will be essentially the same. Nearly all insurance companies will offer the most options, including state-minimum liability coverage, collision, comprehensive, medical payments and personal injury protection (PIP) if you live in a no-fault state. Typically, small insurance companies offer popular endorsements, like gap insurance, roadside assistance and rental car reimbursement. However, you may find that local insurance providers offer fewer unique endorsements, like special coverage for hybrids or new car replacement coverage, compared to large companies. Local insurance companies
We should point out that the definition of a small insurance company is not one-size-fits-all. A small insurance company could serve an entire region of states, like the ones on our list above, or apply to a provider that only serves one very small area. For example, Edison Insurance only sells auto insurance coverage in Florida, Maine Coast Insurance Agency sells coverage throughout Maine, and Nia Insurance sells coverage in the Omaha, Nebraska area. When shopping for your next auto insurance policy, you might consider looking into local insurance companies during your search. We recommend checking out local insurance providers if you value good customer service or prefer to work with an insurance agent. Frequently asked questions
What is the best car insurance company
The is different for every driver. It depends on where you live, what type of coverage you need, your budget and what you value in an insurance company. To find the best car insurance company for you, we recommend shopping around and based on your criteria, keeping in mind that the cheapest car insurance companies are not necessarily the best.
How much does car insurance cost
The is $480 per year for minimum coverage policies and $1,655 per year for full coverage, according to Bankrate’s research. The amount you pay for car insurance, though, will likely differ from the average. The cost of your policy will likely depend on several factors, like your driving and claims history, the of the vehicle you insure, your ZIP code and the coverage types and amounts you choose, among other factors. That’s why it can be helpful to shop around with multiple insurance providers to find the best rates for your specific needs.
How much car insurance do I need
Car insurance is required in almost , and you must carry the minimum amount of insurance required in your state to drive. You will typically be required to have personal , including bodily injury and property damage liability coverage. If you live in a state (and some tort states), you will also need . Most insurance experts recommend purchasing more car insurance than the minimum amount required. You should consider your circumstances when determining . Minimum coverage car insurance will not cover damage to your vehicle if you cause an accident, for instance. Speak with your insurance agent to determine how much car insurance is right for you.
How can I be sure a small car insurance company can pay my claim
There are ways to check whether a small car insurance company can pay your claim, if and when the time comes. For starters, a company’s financial strength rating indicates its past ability to pay claims. By looking at this rating, you can get an idea as to whether the company has had financial issues in the past and will be able to pay out future claims. While a strong financial strength rating does not offer a guarantee of paying future claims, it may help you weed out any providers that aren’t financially solvent. Financial strength scores are typically issued by third-party companies like , and . You may also find it helpful to check each company’s independent third-party customer satisfaction scores, like the ones listed in the , although smaller insurance providers aren’t always rated as part of these studies. Methodology
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits: $100,000 bodily injury liability per person $300,000 bodily injury liability per accident $50,000 property damage liability per accident $100,000 uninsured motorist bodily injury per person $300,000 uninsured motorist bodily injury per accident $500 collision deductible $500 comprehensive deductible To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually. These are sample rates and should be used for comparative purposes only. Your quotes may be different. SHARE: Elizabeth Rivelli is a contributing insurance writer for Bankrate and has years of experience writing for insurance domains such as The Simple Dollar, Coverage.com and NextAdvisor, among others Angelica Leicht is an insurance editor on the Bankrate team. She is truly passionate about helping readers make well-informed decisions for their wallets, whether the goal is to find the right comprehensive auto policy or the best life insurance policy for their needs. Related Articles