Are Major Auto Insurance Companies Better Than Smaller Ones?
Last Updated on July 9, 2020
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 that are available. The major companies have large advertising budgets, which means that 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
When you get car insurance quotes online, you may only be getting quotes from the 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 to friends and family. You may also want to check with community memberships such as your home owner’s association to see if there are smaller insurance companies that they partner with.
Below is a list of the smaller, local companies that we have reviewed. Feel free to search this page for your state using FIND (Command + F (Mac) or Control + F (PC)) to see what’s available where you live.
| Insurance Company | States Available |
|---|---|
| 1st Auto and Casualty | Wisconsin, Illinois, Iowa, Missouri, South Dakota, Arkansas |
| A-MAX | Texas |
| Acceptance | Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Mississippi, Missouri, Nevada, New Mexico, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia |
| Access Auto Insurance | Arizona, Indiana |
| Acuity | Arizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Ohio, Pennsylvania, South Dakota, Tennessee, Utah, Wisconsin, Wyoming |
| Affirmative | Texas, Louisiana, Alabama, Missouri, Illinois, Indiana, California |
| AgWorkers Mutual | Texas, Oklahoma, Arkansas |
| AIS Insurance | All 50 States |
| Alfa | Alabama, Arkansas, Georgia, Indiana, Kentucky, Mississippi, Missouri, North Carolina, Ohio, Tennessee, Texas, Virginia |
| Alliance United | California |
| Allianz | All 50 States (classic cars, rental cars, and business cars only) |
| Allied | All 50 States |
| Amica | Alabama, 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 |
| American National | All 50 States |
| Ameriprise | Alabama, 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 General | California, Washington, Oregon, Arizona, Texas |
| Arbella | Connecticut, Massachusetts |
| AssuranceAmerica | Georgia, 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 California | California |
| Bear River | Utah |
| Bristol West | All 50 States |
| California Casualty | All 50 States (except AK, HI, MA, MI, NY, WI) |
| Chubb | All 50 States |
| Clearcover | California, Illinois, Texas, Ohio, Arizona, Utah, Wisconsin, Louisiana |
| Commonwealth | Arizona |
| Concord Group | Maine, Massachusetts, New Hampshire, Vermont |
| Cost-U-Less | California |
| Countryway | New York, Pennsylvania, Maine, Virginia, Kentucky |
| CURE | Pennsylvania, 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 Mutual | Delaware, Maryland, Pennsylvania, Virginia |
| Elephant Insurance | Illinois, Indiana, Maryland, Tennessee, Texas, Ohio, Virginia |
| Encompass Insurance | Alabama, 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 |
| Farmers Union | Colorado, South Dakota, Minnesota, North Dakota, Kansas, Montana, Utah, Wyoming, Nebraska |
| Fiesta Insurance | California, Arizona, Colorado, Texas, Oklahoma, Kansas, Missouri, Arkansas, Louisiana, Tennessee, North Carolina, Florida, New York, Ohio, Michigan |
| Foremost | 48 states (excluding Hawaii and Massachusetts) |
| Frankenmuth | Michigan, Ohio |
| Fred Loya | California, Colorado, Illinois, Nevada, New Mexico, Georgia, Arizona, Missouri, Indiana, Alabama, Texas |
| Freedom National | Utah, Arizona, Georgia |
| Freeway | California, Arizona, Nevada, New Mexico, Texas, Missouri, Wisconsin, South Carolina, Florida, Massachusetts, New Jersey, New York |
| Fremont | Michigan |
| Gabi | All 50 States |
| GAINSCO | Arizona, Florida, Georgia, New Mexico, Oklahoma, South Carolina, Tennessee, Texas, Utah, Virginia |
| Georgia Farm Bureau | Georgia |
| GoAuto | Louisiana, Nevada, Ohio |
| Good2Go | All 50 States |
| Grange | Georgia, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia, Wisconsin |
| Hagerty | All 50 States |
| Hastings Mutual | Illinois, Indiana, Iowa, Michigan, Ohio, Wisconsin |
| Horace Mann | All 50 States |
| Indiana Farm Bureau | Indiana |
| Indiana Farmers | Illinois, Indiana |
| InsureOne | California, Washington, Oregon, Nevada, Illinois, Texas, Florida, New Jersey, New York |
| Kelly Klee | All 50 States |
| Kemper | Arizona, 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 Bureau | Kentucky |
| Louisiana Farm Bureau | Louisiana |
| Main Street America | Arizona, 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 |
| Missouri Farm Bureau | Missouri |
| New York Central Mutual | New York |
| NJM | New Jersey, Pennsylvania |
| Nodak | North Dakota |
| North Carolina Farm Bureau | North Carolina |
| Noblr | All 50 States |
| Oklahoma Farm Bureau | Oklahoma |
| Omni | Florida, Pennsylvania, Tennessee, Washington |
| Oregon Mutual | Oregon, Washington, California, Idaho |
| Oxford Auto Insurance | Illinois |
| Pekin | Arizona, Illinois, Indiana, Iowa, Ohio, Wisconsin |
| PEMCO | Oregon, Washington |
| Penn National | Alabama, Delaware, Iowa, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia, Wisconsin |
| Pioneer State Mutual | Michigan |
| Plymouth Rock Assurance | Connecticut, Massachusetts, New Hampshire, New Jersey, Pennsylvania |
| Pronto | California, Texas |
| Republic Group | Texas, Oklahoma, Louisiana, Mississippi, New Mexico, Arkansas |
| Rockford Mutual | Illinois, Indiana, Wisconsin |
| Rodney D. Young | Arizona, Colorado, Missouri, Nevada, North Carolina, Texas, New Mexico |
| Root | Arizona, 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 Insurance | Massachusetts, Maine, New Hampshire |
| Safeway | Alabama, Arizona, Arkansas, California, Georgia, Illinois, Louisiana, Mississippi, New Mexico, Tennessee, Texas |
| Say Auto Insurance | Missouri, Kansas, Illinois, Tennessee, Colorado |
| Secura | Arizona, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, North Dakota, Wisconsin |
| Shelter | Arkansas, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, Nevada, Ohio, Oklahoma, Tennessee |
| South Carolina Farm Bureau | South Carolina |
| Tesla Insurance | California |
| Texas Farm Bureau | Texas |
| The Cincinnati | All 50 States |
| The Hanover | All 50 States |
| The Hartford | All 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 |
| United Auto Insurance | Illinois, Indiana |
| Vermont Mutual | Massachusetts, Maine, New Hampshire, Vermont |
| Virginia Farm Bureau | Virginia |
| Wawanesa | California, 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 National | Minnesota, Wisconsin, Iowa, South Dakota |
| Workmen’s Auto Insurance | California |
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 have to file a claim, you are more likely to get the full compensation that you deserve from your policy contract. Claims may also be handled more quickly because the 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 be able to 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 are not going to 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 more likely 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 quite frequently 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 you are selecting a small insurance company because not all of them 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 the smaller company, you may not be supporting your local economy as it appears on the surface.
Other disadvantages of small car insurance companies include the fact that because they are smaller, they don’t have as much staff on hand. 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 issue arise, and this can delay getting your claim processed further.
Making a Choice – Smaller vs. Bigger Insurance Companies
Really, it is a matter of preference whether you choose a major car insurance company or a small company. 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 going with the smaller car insurance company.
