It is very common for people to believe that there are only one or two or even a few insurance companies that are worth dealing with. However, quite the opposite is true. There are many insurance companies in the industry that offer outstanding coverage, pricing, claim serice and financial stability. These companies often are not household names or those that spend huge amounts of money on advertising a lizard or caveman or the like.
A recent study confirms that small PC insurers can compete successfully against larger competitors. The Conning Research study, entitled “Property-Casualty Small Insurers: From Static to Strategic,” analyzes the small insurer segment, their strategies for success, and their impact on larger insurer strategies.
As a result, these smaller or regional companies often have lower expenses, are very nimble and able to manage their business without multiple layers of bureaucracy. Without large advertising budgets and enormous upper level management salary expense, they can often be in position to offer lower premiums and better coverage than the Mega Companies.
Obviously, there are limits to this. You want to be certain that the company you are dealing with is an “Admitted Carrier” in Texas. This means the Texas Department of Insurance has authorized the company to sell insurance in the State of Texas and their policyholders are protected by the State of Texas “Guaranty Association” against company insolvency. Believe it or not, some companies are allowed to operate in Texas as “Non-Admitted Carriers”. Also, be certain that the company has achieved a financial rating of at least “A, Excellent” for their financial stability by an insurance company rating agency. Preferably by A.M. Best Company.
With that in mind, don’t rule out a company just because you havent heard of them. There are a lot of outstanding insurance companies out there and you will be limiting yourself drastically if you do not consider them. Your professional insurance advisor should be able to assist you in locating a quality insurance company that has both financial stability and the ability to meet your specific needs.