Will a Smaller Insurance Company Have Higher Prices on Quotes?

Insurance companies come in all shapes and sizes. Many people assume that the bigger the company, the better rates they can offer you. After all, when you are insuring thousands of homes you are able to cut each homeowner a little bit of a break right? Not necessarily. In some instances a bigger company will have lower prices on quotes but this is not always the case. This is why it is important to look into both smaller insurance companies and larger insurance companies when comparing quotes.

The size of the insurance company is not always going to make a difference. In fact, in some instances larger companies are going to come with higher rates if they have just been hit with millions of dollars in claims. Let's say you have insured with a nationwide company and there has been a natural disaster on the other side of your state. This can impact your costs and your quotes even if you did not need to make a claim. With a smaller local company, they may not have any claims after this disaster and thus your quotes will remain much lower. This is just one example of how smaller doesn't always been more expensive.

Best Quotes on Insurance

All insurance companies use similar risk factors to determine the quotes they can offer you. Things like where you live, whether you live in a good or bad neighborhood,  the value of your property, the condition and features of your house and the security features in place will all impact your quotes. Some smaller companies may specialize in insuring houses in your specific area and thus may be able to offer you a better deal than nationwide companies. In other instances, smaller companies may not have the resources to compete with the bigger named companies and thus their rates may be higher.

Your best bet is to perform an online comparison and look at the quotes offered by companies of all sizes. Look at companies that work on a national level as well as a local level and see the difference. Keep in mind that the cheapest quote is not the only thing that should impact your decision.

A smaller company, for example, may have slightly higher quotes but they may also be able to provide you with personalized service and localized attention that big named companies simply cannot do. If you are looking for better customer service smaller companies tend to be your best bet. However, some homeowners do not feel safe in the hands of a smaller company as if there is a serious natural disaster you want to be sure your insurance agency can actually help you out financially.

Trusting Your Provider

Find that level of trust and confidence when looking into insurance companies. This is equally, if not more, important than finding a good quote. It is important that you feel confident in your provider's ability to perform and assist you along the way. It may be worth the personal attention and service to insure with a company that is small and local, even if this means paying an additional $50 per year on your premium.

In general, a smaller insurance company does not automatically mean higher quotes. See for yourself by comparing different providers around your area and on a national level. Think about more than just the costs but also the level of service, the personalized attention and the reliance that you have in each company. All of these things can help you make a better decision when buying house insurance.

safe secure

Enter your zip code for affordable home owners insurance quotes

GET QUOTES

What People Are Saying

"Thank you for your informative articles on home insurance. I was able to learn what I needed to know for home owners insurance in my state and make a good decision. I found the perfect plan at a great price."

- Todd G, Baltimore MD