Auto Insurance Carriers: What You Need to Know

Auto insurance is a necessary expense for all car owners. It not only provides financial protection in case of an accident, but it is also required by law in most states. Choosing the right auto insurance carrier can be a daunting task, with so many options available in the market. In this article, we will break down the different types of auto insurance carriers and what you need to know before making a decision.

Types of Auto Insurance Carriers

Auto insurance carriers can be categorized into three broad categories:

1. National carriers
2. Regional carriers
3. Local or specialty carriers

National Carriers

National carriers are auto insurance companies that operate across the United States. They often have large advertising budgets and invest heavily in technology to provide a seamless customer experience. Some of the most popular national carriers include:

Auto Insurance Carrier	Market Share
State Farm	18.1%
GEICO	13.8%
Progressive	11.3%
Allstate	9.5%
USAA*	6%

*USAA is only available to military members, veterans and their families.

Choosing a national carrier has its benefits. They often have a large network of agents and offer a wide range of coverage options. However, national carriers may not offer the same level of personalized service as regional or local carriers. They may also have higher rates due to their large overhead costs.

Regional Carriers

Regional carriers are auto insurance companies that operate in a specific region, such as the Northeast or the Midwest. They often have a smaller customer base and may offer more personalized service than national carriers. Some of the most popular regional carriers include:

Auto Insurance Carrier	Region
Erie Insurance	Mid-Atlantic, Midwest, Southeast
Amica Mutual	Mid-Atlantic, Northeast, Southeast
Auto-Owners Insurance	Midwest, Southeast
Mercury Insurance	West
The Hartford	Mid-Atlantic, Northeast, Southeast

Regional carriers may offer more competitive pricing than national carriers due to their lower overhead costs. However, they may have a smaller coverage area and may not offer as many coverage options.

Local or Specialty Carriers

Local or specialty carriers are auto insurance companies that operate in a specific city or region. They may also specialize in certain types of coverage, such as classic car insurance or high-risk driver insurance. Some examples include:

Auto Insurance Carrier	Specialty
The General	High-risk driver insurance
Grundy Insurance	Classic car insurance
Metromile	Pay-per-mile insurance
Root Insurance	Usage-based insurance
Clearcover	Digital insurance company

Local or specialty carriers may offer unique coverage options or pricing models that are not available with larger carriers. However, they may have limited coverage areas and may not be able to offer the same level of customer service as larger carriers.

Factors to Consider When Choosing an Auto Insurance Carrier

When choosing an auto insurance carrier, there are several factors to consider:

Coverage Options

Make sure the carrier offers the coverage options you need, such as liability, collision, and comprehensive coverage. If you have unusual insurance needs, such as classic car insurance or high-risk driver insurance, make sure the carrier offers those options as well.

Pricing

Compare pricing from several different carriers to find the best deal. Keep in mind that the lowest price may not always be the best option, as it may come with less coverage or a higher deductible.

Customer Service

Research the carrier’s reputation for customer service. Check online reviews and ratings to see how they handle claims and customer complaints.

Financial Stability

Make sure the carrier is financially stable and has a good reputation in the industry. Check their ratings from independent rating agencies such as A.M. Best and Standard & Poor’s.

FAQ

What is the minimum auto insurance coverage required by law?

The minimum auto insurance coverage required by law varies by state. In most states, drivers are required to have liability insurance, which covers damages or injuries you may cause to others in an accident. Some states also require additional coverage, such as personal injury protection or uninsured/underinsured motorist coverage.

How can I save money on auto insurance?

There are several ways to save money on auto insurance:

• Compare quotes from several different carriers to find the best deal
• Choose a higher deductible to lower your monthly premiums
• Take advantage of discounts, such as safe driver discounts or bundled insurance discounts
• Consider usage-based insurance if you don’t drive often or have a short commute

What is usage-based insurance?

Usage-based insurance is a type of insurance that bases your rates on your driving habits. It typically involves installing a device in your car that tracks your driving behavior, such as your speed, acceleration, and braking. Drivers who exhibit safe driving habits may be eligible for lower rates.

What is high-risk driver insurance?

High-risk driver insurance is a type of insurance for drivers who have a poor driving record or have been convicted of a DUI or other serious driving offense. Rates for high-risk driver insurance are typically higher than for standard insurance due to the increased risk of accidents.

What is classic car insurance?

Classic car insurance is a type of insurance for cars that are over a certain age, typically 20-25 years old. Classic car insurance is designed to provide coverage for the unique needs of classic cars, such as limited use and the need for specialized repairs.

What is pay-per-mile insurance?

Pay-per-mile insurance is a type of insurance that charges you based on the number of miles you drive. It is typically offered to drivers who don’t drive often or have a short commute.

Conclusion

Choosing the right auto insurance carrier is an important decision that can have a significant impact on your finances and peace of mind. Consider your individual needs and preferences when evaluating different carriers, and don’t be afraid to shop around for the best deal. With the right coverage and carrier, you can drive with confidence knowing you’re protected in case of an accident.