Auto Insurance Company Comparison – Does Size Matter?

People have always had an obsession with size. When you compare most things with another, size is the easiest method of comparison. So, should the motorists be concerned about the size in car insurance company comparison?

Naturally, people would have different preferences and they would base their decisions on their circumstances, choices and even political views. However, this doesn’t stop us looking into the advantages and disadvantages of larger and smaller companies. You can still keep your views and make a choice that makes you happy. Most motorists consider these points when they compare auto insurance companies:

big or small car insurance providers?Customer Care: Many policyholders look for a pleasant experience when dealing with car insurers. Prompt, polite, and practical service is what they are looking for. Little mishaps by your insurer can be upsetting when you have a claim. It is important that your insurer understands and appreciate your circumstances. It is their business to look after you after all.

Pricing: A good company with reasonable rates is the best choice for most drivers. Take note, ‘reasonable’ does not always mean ‘lowest’ in this case. For many consumers, price is still the ultimate decisive factor in auto insurance company comparison. There is something wrong with you if you don’t want to pay less. All being the same, paying less is no brainer. Motorists can keep the same coverage and still manage to get discounts.

Financial Position: policyholders need to be aware of the relative financial strength of insurers when they rate auto insurance companies. Companies at risk of folding or are exposed to huge debts may not be able to pay off claims. Although each state in the USA has their own safety net to pay for claims in case one of the insurers goes bankrupt it is always best not to have to deal with such situation.

Corporate Culture: other customers base their choice on the perceived corporate culture of an insurance provider. This includes reasons based on cultural or political affinity, or to convergence of convictions and causes.

Other considerations are whether the company is publicly traded or not. This provides a certain assurance to some people. In general, the four reasons highlighted above are the chief considerations by many people who are in the process of an auto insurance company comparison.

The Big Insurers: Pros and Cons

In the main, larger auto insurers are generally more financially secure than their smaller brethren. They have big money at their disposal, so they can offer more revolutionary discount programs and savings schemes.

Big bucks also mean more personnel, so larger firms have an army of customer relations managers. To top it all, these massive resources mean that these firms are recognized and accepted everywhere, so validating a claim may be easier.

On the other hand, big business may not offer the level of ‘personal touch’ sought by a customer. They also tend to spend huge amounts on advertisements, which may not necessarily reflect their actual practice. Lastly, these companies may be involved in policies and political practices frowned upon by some people. Political views of the policyholders and insurers play a role in auto insurance company comparison. 

The Smaller Insurers: For and Against

Going with the smaller automobile insurance company could offer the ‘personal touch’ lacking in big business. A smaller outfit also means small overheads, and this could equate to lower rates. They often have local agents who are familiar with the local scene. Lastly, choosing a community-based company means that investments stay with the local economy.

On the other hand, the small firms tend to offer less customer support especially in odd hours, which could be crucial during accidents. They could also not afford to give big discounts, and may not be financially stable in the long run.

Conclusion

The first step in decision making is to get cheap auto insurance quotes from as many companies as possible in order to make a healthy car insurance company comparison. You should use a website like this one to find the current policy packages and deals quickly and easily. Use the above considerations as your guide, and try to rate different car insurance policies based on them. You should also have an open mind. You may be more willing to go with a larger company but a smaller one may swoop you off your feet with their charm, friendliness and good rates. 

Share on Pinterest