You’re comparing prices online and you see some companies offering great rates, but you don’t recognize some of them.

Your first thought may be: I only go with companies I’ve heard of and advertise on TV. You can probably hum the State Farm “Like a Good Neighbor” jingle.

You know Flo works for Progressive and GEICO’s pitchman is small and green.

That’s because large insurance companies have millions (or billions, in GEICO’s case) to spend on advertising and marketing, while small insurance companies don’t. But that doesn’t mean small car insurers are a bad choice.

On the contrary, you may get more personal service or lower rates than the big guys can offer. We’ll take a look at some of the advantages and disadvantages of going with a smaller insurance company…

Advantages of Small Car Insurance Companies Lower rates: Because small car insurers spend less on marketing and have lower overhead costs, they often can provide lower-cost policies – especially for high-risk drivers

Customer service: The largest companies insure tens of millions of drivers. No matter how many customer service representatives they hire, you’ll still be 1 customer out of 10,000,000.

Smaller, regional companies often beat the big companies in customer satisfaction, offering a local, family feel

Specialty car insurance: If you’re trying to insure an high-powered sports car or a classic car, you may have better luck going with a small insurer that specializes in specialty vehicles

Disadvantages of Small Car Insurance Companies

You get what you pay for: If you choose a smaller car insurer because you want to save money with a low-cost policy, review the details carefully.

The less you spend, the less coverage you’ll get – which could be disastrous if you get into an accident

Source: https://www.velveltyblog.info/2019/07/should-choose-smaller-insurance-company-disadvantages-small-car-insurance-companies.html