Are Major Auto Insurance Companies Better Than Smaller Ones?

Last Updated on February 10, 2023

When it comes time to look for new car insurance, it can be very easy to find the major car insurance companies and overlook the smaller companies available. The major companies have large advertising budgets, so you are more likely to find them and get their quotes. However, there can be some advantages to using a smaller car insurance company for your auto insurance needs.

Finding the Smaller Auto Insurance Companies

Are Major Auto Insurance Companies Better Than Smaller OnesWhen you get car insurance quotes online, you may only be getting quotes from major companies. It can be harder to find the smaller car insurance companies that are out there. Some websites give you quotes from multiple sources in a single form submission and will provide you with some companies that you may not have heard of.

The smaller car insurance companies are often local or only available in one or two states. When this is the case, you may not be able to find them or get quotes for them online. A local insurance agent will often be able to point you in the direction of smaller companies in the area. Aside from this, you may want to ask around friends and family. You may also want to check with community memberships such as your homeowner’s association to see if there are smaller insurance companies that they partner with.

Below is a list of the smaller, local companies we reviewed. Feel free to enter your state’s name into the search box on the right to show insurers available in your state.

Insurance CompanyStates Available
1st Auto and CasualtyWisconsin, Illinois, Iowa, Missouri, South Dakota, Arkansas
A-MAXTexas
AcceptanceAlabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Mississippi, Missouri, Nevada, New Mexico, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia
Access Auto InsuranceArizona, Indiana
AcuityArizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, Tennessee, Utah, Wisconsin, Wyoming
Adirondack Insurance ExchangeNew York
AffirmativeTexas, Louisiana, Alabama, Missouri, Illinois, Indiana, California
AgWorkers MutualTexas, Oklahoma, Arkansas
AIS InsuranceAll 50 States
Alfa Alabama, Arkansas, Georgia, Indiana, Kentucky, Mississippi, Missouri, North Carolina, Ohio, Tennessee, Texas, Virginia
Alliance UnitedCalifornia
AllianzAll 50 States (classic cars, rental cars, and business cars only)
AlliedAll 50 States
AmicaAlabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Amigo InsuranceIllinois, Texas, Wisconsin, Indiana
American FreedomIllinois, Indiana, Pennsylvania, Tennessee
American NationalAll 50 States
AmeripriseAlabama, Arizona, Colorado, Delaware, District of Columbia, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, West Virginia, Wisconsin
Anchor GeneralCalifornia, Washington, Oregon, Arizona, Texas
ArbellaConnecticut, Massachusetts
AssuranceAmericaGeorgia, Florida, Texas, Arizona, South Carolina, Nebraska, Missouri, Indiana, Virginia
Auto-Owners Alabama, Arizona, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Wisconsin
Automobile Club of Southern CaliforniaCalifornia
Baja Auto InsuranceTexas
Bear RiverUtah
Bristol WestAll 50 States
California CasualtyAll 50 States (except AK, HI, MA, MI, NY, WI)
ChubbAll 50 States
ClearcoverCalifornia, Illinois, Texas, Ohio, Arizona, Utah, Wisconsin, Louisiana
CommonwealthArizona
Concord GroupMaine, Massachusetts, New Hampshire, Vermont
Cost-U-LessCalifornia
CountrywayNew York, Pennsylvania, Maine, Virginia, Kentucky
CUREPennsylvania, New Jersey
Dairyland Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Direct Auto Insurance Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Texas, Virginia
Donegal MutualDelaware, Maryland, Pennsylvania, Virginia
Duck Duck AutoAll 50 States
Elephant InsuranceIllinois, Indiana, Maryland, Tennessee, Texas, Ohio, Virginia
Encompass InsuranceAlabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin
Erie Insurance District of Columbia, Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin
Estrella InsuranceFlorida, Arizona, California, Texas
Falcon InsuranceIllinois, Oklahoma, Texas, Utah, Indiana, Arizona
Farm Bureau Insurance of TennesseeTennessee
Farmers Mutual of NebraskaNebraska, South Dakota
Farmers UnionColorado, South Dakota, Minnesota, North Dakota, Kansas, Montana, Utah, Wyoming, Nebraska
Fiesta InsuranceCalifornia, Arizona, Colorado, Texas, Oklahoma, Kansas, Missouri, Arkansas, Louisiana, Tennessee, North Carolina, Florida, New York, Ohio, Michigan
Foremost48 states (excluding Hawaii and Massachusetts)
Founders InsuranceIllinois, Indiana, Ohio, Wisconsin
FrankenmuthMichigan, Ohio
Fred LoyaCalifornia, Colorado, Illinois, Nevada, New Mexico, Georgia, Arizona, Missouri, Indiana, Alabama, Texas
Freedom NationalUtah, Arizona, Georgia
FreewayCalifornia, Arizona, Nevada, New Mexico, Texas, Missouri, Wisconsin, South Carolina, Florida, Massachusetts, New Jersey, New York
FremontMichigan
GabiAll 50 States
GAINSCO Arizona, Florida, Georgia, New Mexico, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia
Georgia Farm BureauGeorgia
GermaniaTexas
GoAutoLouisiana, Nevada, Ohio
Good2GoAll 50 States
GrangeGeorgia, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, Wisconsin
HagertyAll 50 States
Hastings MutualIllinois, Indiana, Iowa, Michigan, Ohio, Wisconsin
Horace MannAll 50 States
Indiana Farm BureauIndiana
Indiana FarmersIllinois, Indiana
InsureOneCalifornia, Washington, Oregon, Nevada, Illinois, Texas, Florida, New Jersey, New York
InsureMaxGeorgia, Florida, Texas, Arizona, South Carolina, Nebraska, Missouri, Indiana, Virginia
InsurifyAll 50 States
JerryAll 50 States
Kelly KleeAll 50 States
KemperArizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Maryland, Minnesota, Missouri, Nevada, New Jersey, New York, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin
Kentucky Farm BureauKentucky
Louisiana Farm BureauLouisiana
Main Street AmericaArizona, Connecticut, Delaware, Florida, Georgia, Maine, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Vermont, Virginia
MAPFRE Arizona, California, Connecticut, Florida, Idaho, Indiana, Kentucky, Maine, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Vermont, Washington
Mercury Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, Virginia
Metromile Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, Washington
Mile AutoArizona, California, Georgia, Illinois, Ohio, Oregon, Pennsylvania, Tennessee, Texas
Mississippi Farm BureauMississippi
Missouri Farm BureauMissouri
National ContinentalNew Jersey
New York Central MutualNew York
NJMNew Jersey, Pennsylvania
NodakNorth Dakota
North Carolina Farm BureauNorth Carolina
North Star MutualMinnesota, North Dakota, South Dakota, Nebraska, Oklahoma, Iowa, Kansas, Wisconsin
NoblrAll 50 States
Ocean HarborFlorida, California
Old American Indemnity CompanyAlabama, Arizona, Indiana, Kentucky, Louisiana, Missouri, North Carolina, North Dakota, South Carolina, Tennessee, Texas, Utah
Oklahoma Farm BureauOklahoma
OmniFlorida, Pennsylvania, Tennessee, Washington
Oregon MutualOregon, Washington, California, Idaho
Otto InsuranceAll 50 States
Oxford Auto InsuranceIllinois
Patriot Insurance CompanyMaine, New Hampshire, Vermont
PekinArizona, Illinois, Indiana, Iowa, Ohio, Wisconsin
PEMCOOregon, Washington
Penn NationalAlabama, Delaware, Iowa, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, Wisconsin
Pioneer State MutualMichigan
Plymouth Rock Assurance Connecticut, Massachusetts, New Hampshire, New Jersey, Pennsylvania
ProntoCalifornia, Texas
Republic GroupTexas, Oklahoma, Louisiana, Mississippi, New Mexico, Arkansas
Rockford MutualIllinois, Indiana, Wisconsin
Rodney D. YoungArizona, Colorado, Missouri, Nevada, North Carolina, Texas, New Mexico
RootArizona, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, West Virginia
Safe Auto Arizona, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia
Safeco Alabama, Arizona, Colorado, Connecticut, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Safety InsuranceMassachusetts, Maine, New Hampshire
SafewayAlabama, Arizona, Arkansas, California, Georgia, Illinois, Louisiana, Mississippi, New Mexico, Tennessee, Texas
SavvyAll 50 States
Say Auto InsuranceMissouri, Kansas, Illinois, Tennessee, Colorado
SecuraArizona, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, North Dakota, Wisconsin
Security NationalFlorida, Texas
Shelter Arkansas, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Tennessee
SmartFinancialAll 50 States
South Carolina Farm BureauSouth Carolina
StillwaterAll 50 States
Tesla InsuranceCalifornia
Texas Farm BureauTexas
The CincinnatiAll 50 States
The HanoverAll 50 States
The HartfordAll 50 States
Titan Alabama, Arizona, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Maryland, Mississippi, Nevada, New Mexico, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia
TrexisAlabama, Arizona, Arkansas, Georgia, Indiana, Kentucky, Nevada, Ohio, South Carolina, Tennessee, Texas, Virginia
TrumbullWashington, Michigan, Minnesota, Pennsylvania, Texas
UmialikAlaska
United Auto InsuranceIllinois, Indiana
Vermont MutualMassachusetts, Maine, New Hampshire, Vermont
Virginia Farm BureauVirginia
WawanesaCalifornia, Oregon
West Bend Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, Ohio, Tennessee, Wisconsin
Westfield Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, Tennessee, West Virginia
Western NationalMinnesota, Wisconsin, Iowa, South Dakota
Wisconsin Farm BureauWisconsin
Workmen’s Auto InsuranceCalifornia

Advantages of Bigger Auto Insurance Companies

The big insurance companies have a lot going for them. These companies are the most financially stable. This means that if you file a claim, you are more likely to get the total compensation you deserve from your policy contract. Claims may also be handled more quickly because larger companies have a lot of employees and can get estimates and file paperwork faster than smaller companies.

Big insurance companies have some other advantages as well. You may get better discounts and savings from bigger insurance companies. These major companies are the most likely to have good driver discounts or accident forgiveness programs. You may also be able to bundle your homeowners or renter’s insurance and other types of insurance to save additional money on monthly premiums with big insurance companies.

Disadvantages of Big Auto Insurance Companies

With bigger car insurance companies, you will not get very personalized service. You are just one of a million customers, and when you really need help, you will likely be dealing with an anonymous representative over a toll-free number. The big car insurance companies are always out for their bottom line rather than taking care of customers because they have enough customers it doesn’t hurt them if you decide to go elsewhere for your policy renewal.

Advantages of Small Auto Insurance Companies

Small car insurance companies offer a much more personalized service. They are likelier to go out of their way to keep you happy with their company. These companies are also often cheaper than the big companies, although they do not offer the same discounts. Small companies are often local, so when you get your policy through them, you are supporting your community. Small companies may also support politics and charities that are important to you.

Disadvantages of Small Auto Insurance Companies

Small companies do have some disadvantages. You want to be careful when selecting a small insurance company because not all are financially stable. You need to make sure that if you ever have a claim, there won’t be any problem for the car insurance company to compensate you according to your coverage.

Another thing to look out for is that some small insurance companies are actually subsidiaries of the major companies. This means that even though you may be getting a deal through a smaller company, you may not be supporting your local economy as it appears on the surface.

Another disadvantage of small car insurance companies is that they don’t have as many staff on hand because they are smaller. This can mean that your claim is not processed as quickly. You may also have to wait for business hours to contact your car insurance company if you have an accident or other issues arise, and this can delay getting your claim processed further.

Making a Choice – Smaller vs. Bigger Insurance Companies

Whether you choose a major car insurance company or a small company is a matter of preference. These auto insurers will all compete for your business. The best thing to do is shop around for the best rates, both online and through local agents. If a smaller company gives you the best premium quote and checks out as stable enough to pay claims, there is absolutely nothing wrong with choosing the smaller car insurance company.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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