When shopping for car insurance companies, many people are surprised to find that there are hundreds of companies to choose from. Most are under the assumption that there are only a few very large car insurance companies that provide auto insurance coverage for drivers. However, there are many smaller institutions most have never heard of, that do quite well and prosper.
How Smaller Insurance Companies Survive
While you can find low car insurance rates at some of the bigger name insurance companies, some of the lowest rates available will be found with the lesser-known and smaller insurance companies. In order to compete with the big companies, small companies have to keep their rates low to survive.
Usually, smaller insurance companies will not offer many of the frills and extra benefits that some of the big companies offer; however, they don't charge you for these extras either. For instance, many of the smaller ones will not offer some of the selling point items like rental car reimbursement or roadside assistance. On the other hand, the premium rates you pay will not reflect these additives and will usually be cheaper.
If you're looking for a basic no-frills car insurance policy, then you should really consider some of the lesser-known car insurance companies and their policies. If you do decide to go with a large company, make sure to throw out the fluff you don't need and adjust your premium rate accordingly.