National vs. Local Insurance Companies: Weighing the Options

When searching for insurance such as auto or motorcycle coverage, one of the first things you’ll need to decide is whether you should go with a national or local insurance company. There are pros and cons to both types of companies, and it’s important to understand the features of each before making your decision.

The Benefits of Using a Local Insurance Company

Firstly, having a local, brick-and-mortar company where you can discuss your policy face-to-face with your agent is a large motivating factor for a lot of customers. When you want to make a change to your policy or need to file a claim, you’ll know where to go and exactly who to speak to about it.

The major feature local companies tout is their personal service. Local companies are much smaller than large insurance companies, and many are able to spend time getting to know their clients. This enables them to provide personalized service and policies tailored to you.

Additionally, local insurance companies are slightly more lenient when it comes to providing second chances if your driving history is spotted with tickets or accidents.

The Downside of Local Companies

There are downsides of going with a local insurance company, though. For one, local agents usually have regular working hours, as opposed to many national companies’ 24/7 hours. This means that you may be unable to contact your local agent when you need to, and will be referred to whoever is on call.

Second, local companies generally offer fewer discounts than national companies. This could mean a higher premium for you.

Third, national companies tend to have better technological resources to offer their clients. This means better websites, apps, online payment options, and search features.

Tips on Making Your Decision

It all comes down to what’s most important to you.

When making your decision:

  • get several quotes from different companies before making your decision, shopping around will get you the best deal;
  • speak with the agents and ask what their response time is like when you contact them, see if you have good rapport with any of the local agents;
  • make sure the company you’ve chosen is licensed and covered by the state’s guaranty fund, as the U.S. Government recommends, the fund will pay claims if the company ever defaults;
  • check out the company’s reviews to see how others rated their customer service (you can do that on J.D. Power’s website); and
  • check the company’s financial history for stability, as well as the complaint record for their company.

If Ever in an Accident, Call an Injury Attorney

In the unfortunate event of an accident, if it is because of someone else’s negligence, you’ll need to call a local Denver attorney as soon as practicable. It’s particularly important to speak to an attorney before providing any insurance adjusters with a statement because you could inadvertently say things that could harm your claim.

For questions, contact Denver injury attorney D.J. Banovitz today for a free, no-obligation consultation. Call (303) 300-5060 to schedule your appointment.

D.J. Banovitz’ career has always concentrated on trial practice and he has litigated hundreds of cases. His passion and sole career focus has been to seek justice for people suffering from personal injuries as the result of someone else’s negligence. The hallmark of the Law Office of D.J. Banovitz, is the total commitment to professionalism, quality, and personalized care of your injury case. D.J. has dedicated his professional life to helping those most in need and is a proud and active member of the Colorado Trial Lawyers Association. His experience includes volunteering for Colorado Rural Legal Services in Montrose, the Colorado Aids Project, consumer law, family law, criminal defense, and Alternative Defense Counsel for juveniles in Denver.