Is a local auto insurance company better than a national one?

On average, auto insurance costs $83.72/mo or $1,004.68 annually. Both national and local auto insurance agencies can offer premier services. Compare rates from insurers to find the best company and savings for your needs. Start here to find great affordable rates.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Written by Rachel Bodine
Feature Writer Rachel Bodine

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent Daniel Walker

UPDATED: Apr 29, 2022

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Things to Remember...

  • Local U.S. insurers are able to offer more personalized service
  • National insurance carriers typically have 24-hour customer service
  • National carriers can offer a wide array of discounts

When you search for the best auto insurance policy, you will need several choices for your prospective policy. It is possible that you will have local and national insurers battling for your business when you compare policies.

Is a local auto coverage company better than a national one? You may find that either a national or a local company will work best for your needs.

While it may ultimately depend on your coverage and budgeting needs, there are some strengths and weaknesses to a cheap local auto insurer.

Ready to buy local auto insurance? Enter your zip code into our FREE car insurance comparison tool to start comparing affordable local car insurance rates now!

What are some advantages of using local auto insurance companies?

Immediately you will notice is that local companies can be much more personable. Having a local agent with a nearby company can help ensure close contact.

Such a relationship is common of local insurers. Sometimes, national major auto insurance companies rely on toll-free numbers and call-in centers.

The former company can be a welcome change from national companies, in terms of banks and businesses in which you may already be familiar.

Of course, the idea is that with local and state auto insurance companies, fewer locations mean minimal extension and more attention to individual users.

Naturally, communication can be much easier. It also leads to some other welcomed benefits that should be considered when you compare premiums:

  • Competitive Rates – With less overhead, your local insurer might be able to offer promising insurance rates. With the ability to customize quotes from the local car insurer, a more personal quote could mean increased savings.
  • Special Features – Are you in need of car insurance and have a bad track record? Local insurers may be able to grant a second chance that standardized, national insurers might not offer you.

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What are some disadvantages of local insurers?

There are some features that drive many to choose national major insurers. While some might be a matter of taste, others must be considered when you look at the convenience of some items that might arise. Let’s take an example:

Your auto insurance coverage plan includes comprehensive insurance which covers windshield protection. After getting a chip in your windshield while on a road trip, you call your insurer to get it filled and start a claim.

With a national company, it may be easier to set up an appointment when you’re not near home.

Indeed, the strong and extensive national network of such a car insurer offers its advantages. And while it’s not as easy to talk to your local agent, the wide-reaching dynamic of a national insurer has other conveniences that must be considered:

  • Communication – A local insurer might be better in terms of customer service. However, it’s hard to argue with 24-hour operators and other convenient perks.
  • Technology – With national insurers, you may find online systems similar to those with online banking platforms. Apps for mobile devices and other tech-based conveniences provide a very strong set of advantages for national auto insurers.
  • Discount Standards – Discounts are far more standardized so you may end up with the cheapest insurer. If you’re counting on commonly advertised discounts and accompanying schemes, you’ll likely have an easier time with national companies.

How can you decide what is right for you?

Do you want collision coverage and collision insurance? How is your credit score, and do you have any at-fault accidents as the driver on your record? Decide what type of coverage you want on your vehicle. Bodily injury liability only or full coverage? And who has the most affordable rates for teen drivers or for your whole family?

You may be drawn to either type of car insurer before you even compare different policies. If you notice some features or dynamics that you must have, you may do well to subscribe to either local or national insurers.

However, most of those comparing the cheapest car insurance policies will want to do just that – compare one’s option before giving much weight to whether the company is local or national.

After all, many of the typical advantages and disadvantages may not be present with specific companies.

Similar to policies that you consider, you must approach each company on a case-by-case basis.

Observe the rates quoted for policies that fit your needs.

If and when it becomes relevant, follow through on the characteristics of the car insurer.

Perhaps you’ll find a local auto insurer that minimizes typical disadvantages. Or maybe you’ll find a national company that offers exceptional customer service.

The reality is that comparing car companies is very important. Do this along with comparing the actual policies to ensure that you are satisfied with your choice.

Looking for local auto insurance quotes? Our FREE car insurance comparison tool can help you compare the best local auto insurance policies when you enter your zip code below!

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

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