Are the major auto insurance companies better than smaller ones?

Major auto insurance companies are not necessarily better than smaller ones. Save as much as $100/mo. by comparing rates between small and large companies.

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Daniel Walker
Licensed Insurance Agent

UPDATED: Mar 29, 2020

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We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn't influence our content. Our opinions are our own.

Things to Remember...

  • Well-known companies are not necessarily better than smaller ones
  • Major companies offer flexible rates and have a larger network of insurance agents
  • You may receive more personalized service if you choose a smaller insurance carrier

Major auto insurance companies are not necessarily better than smaller ones. There are various other factors you need to consider when buying auto insurance, not just size. As a consumer, you need to make use of comparison tools listed on various websites.

The essence of having a cover is so that the insurer can honor your claims; otherwise, it is not worth your money. Auto insurance price comparisons are the best way to save money and get the right provider to meet your needs.

As a customer or a newbie in the insurance sector, you can benefit greatly from comparison sites. Enter your zip code above into the auto insurance comparison tool now to get FREE and reliable quotes!

Big Auto Companies Vs Smaller Ones


There are numerous advantages of going for major companies; some of them include:

  • More variety in terms of policies
  • Competitive with flexible rates
  • A larger network of insurance agents, which means better customer service

Due to specialization, smaller firms have the ability to offer superior products. Generally, small auto firms have lower overheads, and they are in a position to charge less.

Other benefits include:

  • Personalized services
  • Cheaper offers on some coverage
  • Flexibility

As evidenced, both smaller and large companies have their benefits. When conducting your research, it is advisable to compare both big and small insurers. Auto insurance comparison websites make shopping very easy since the process is fast.

It is essential to compare similar coverages offered by both large and smaller firms. Since having insurance is compulsory in some states, it’s imperative to have the right amount of coverage.

When shopping for auto insurance online, it should not be a question of the size of the insurer.

Your primary goal should be to get a cover that best suits you; you could get it from a large or smaller provider. It also depends on how you use the car.

For instance, if you travel out of your state frequently, you should consider one of the largest auto insurance companies since they cover accidents that occur in another state. Small ones may have this provision but at a higher rate.

Security is a major concern for most people. Usually, small insurance companies do not appear at the top of rankings. In order to be the safest insurance company, you must earn billions.

If security and safety is a prime factor for you, then it is better to go for a major company. This way, you can be sure that your claim will be paid in full.

Free Auto Insurance Comparison

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Free Auto Insurance Comparison

Enter your zip code below to view companies that have cheap auto insurance rates.

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Differing Factors to Compare

Normally, larger firms have the capacity to hire more personnel, which means they have round-the-clock customer service to handle any questions and queries you may have. Smaller companies have fewer workers and may not afford 24/7 customer service.

However, you should take the time to read reviews and customer testimonials, as most people will share their experiences regarding customer support and other services.

A larger company does not necessarily mean that they have excellent customer care.

Accessibility is another factor that may differ depending on the size of the firm. Larger companies normally have many ways in which you can contact them when you want to make claims.

Some of this ways include email, website, and free toll numbers. Smaller companies may be limited in this regard. Basically, it depends on what is important to you. If these factors matter, then going for a larger company makes more sense.

Instances Where a Smaller Company Is More Ideal


For customers who want specialty insurance that requires special thought, they should consider smaller firms. For instance, if you need a particular type of commercial trucking, the best provider is most certainly a smaller firm.

Larger companies focus their attention on wider policies, which attract a majority of their clients. Generally, they go for the mass, but if you have individual needs such as bad credit, a smaller firm is more likely to cater to your needs.

You cannot expect a large firm to open an office solely devoted to your specifications and needs.

Many customers also want personalized services, which is common among smaller companies.  However, for a smaller insurer, you are likely to relate on a name basis with an insurance agent.

Personalized services are essential for many customers since they feel that they are valued. One feels great when they are treated like they matter, and if this is what you are looking for, you should defiantly enlist the services of a smaller insurance firm.

The Roles of Agents and Brokers

When shopping for auto insurance, it is important to meet with agents. However, you should remember that there are basically two types of agents.

One type will only sell products for a particular provider, and the other is independent and more of a broker.

If you have shortlisted a few companies from a comparison site, you can use a broker to help you make an informed decision.

At the end of the day, only thorough research with the help of a comparison site will help you engage the best auto insurance firm. Remember that there are many factors used to gauge the suitability of an auto insurance firm other than size.

Use our FREE auto insurance comparison tool to compare factors that make auto insurance companies desirable for you. Just enter your zip code below to get started!

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

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