Can Smaller Insurance Companies be Trusted?

While most consumers still prefer to purchase their auto insurance through large and established companies, there are many smaller insurers who look to gain their percentage of the current market share by offering lower prices than their competitors. However, smaller companies don’t enjoy the excellent reputations of larger insurers and consumers are advised to carry out sufficient research before committing to a policy.

If a premium from a smaller company seems surprisingly low, it is usually best to treat a quotation with a certain amount of caution. It is usually a little more difficult to confirm the reputation of a smaller company, especially as most of them aren’t registered with the assortment of governing bodies that oversee the auto insurance market. It is often much easier to place your faith in an established insurance carrier than to carry out extensive research on a smaller competitor when only a limited amount of information is available.

Perhaps the best way to determine a level of trust with a smaller insurance company is to speak to customers who may have already used their services. Does the company deal with claims effectively? Are the levels of customer service as good as those provided by larger companies? Are low-cost prices simply a way of luring in new business before premiums rise significantly upon renewal?

Some smaller companies only offer low-cost rates to a smaller selection of drivers so an offer that might seem appealing at first glance will ultimately come with a series of restrictions for young drivers or those with motoring convictions. Indeed, many high-risk category drivers will find themselves being penalized more with a small insurance company than they might with a larger competitor.

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