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Robbie Hoye

By: Robbie Hoye on January 8th, 2025

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Buying from Local vs. National Insurance Carriers: Which is Better?

Personal Auto | Individuals & Families | Home Insurance

When it comes time to shop for insurance, one of the many questions you’ll be faced is if you want to purchase coverage through local carriers in your state or region, or directly from large nationwide carriers. 

While national carriers may boast catchy jingles or well known mascots, could trusting a local carrier provide you with more comprehensive coverage? 

As a local independent insurance agency and broker, our team at Berry Insurance is often asked what the differences are between buying coverage locally vs. nationally and which is the right choice. In this article we’ll be breaking down their differences and covering all your carrier options when purchasing insurance. 

Table of contents:

What is the difference between local and national insurance carriers? 

First let’s define what we mean by these different types of carriers. 

Local or regional carriers are insurers who offer their services to a specific state, area, or region within the country. For example, Safety Insurance is a carrier local to New England that typically offers coverage to clients in Massachusetts, New Hampshire, and Maine. Because local carriers operate within state boundaries, they are usually subject to different regulations when compared to national insurance providers. 

National carriers are instead insurers that operate at a larger scale, providing coverage to multiple states and regions. These are typically larger and more well known than local carriers - think Allstate, USAA, The Hartford, etc. While these companies can provide comprehensive coverage to a larger net of customers, their size may result in stricter regulations and broader coverage. 

Where do independent agents come in? 

Working with an insurance agent can help to make the process more personalized and easier to understand when compared to buying direct from carriers. 

Independent insurance agencies represent several different insurance carriers, both local and national, allowing them to shop for you and get the best insurance policy for your individual needs - as opposed to a more general policy that could leave with gaps in coverage. They can provide you with several quotes from different carriers, so you can better decide the best fit for your needs. 

Wondering if you should work with an independent agent or buy directly from a carrier? Read up on all of your insurance buying options, here: Buying Insurance: Insurance Agent vs Buying Direct.

Pros and cons of working with a local insurance carrier

Working with smaller local insurance carriers can offer plenty of advantages and disadvantages that you should know about before you go shopping for coverage: 

Pros: 

  • Service may be more personalized/customized for you and your region 
  • May offer cheaper coverage when compared to national carriers
  • Hold and call time could be shorter compared to larger national carrier call centers
  • Knowledge of localized regulations, laws, and risks important for you 
  • Smaller carriers may offer more niche or specialized types of coverage - such as classic car insurance
  • Work with local agents and local claims adjusters knowledgeable about your area

Cons: 

  • Local carriers may not have as many digital pricing tools and other features that larger carriers tend to provide
  • Smaller carriers may not offer as many lines of coverage as their larger counterparts

Pros and cons of working with a national insurance carrier 

Just as with local carriers, there are important facts about national carriers to keep in mind: 

Pros: 

  • Larger carriers often have easy-to-use self-service tools and digital apps that can make the process more efficient
  • Usually have well-established reputations
  • May have more financial stability compared to smaller carriers 
  • Typically staffed 24/7

Cons: 

  • You will likely work with a different agent each time - meaning the experience won’t be tailored to you and your family
  • Potentially long hold times when calling
  • May be difficult to talk to managers or supervisors about potential issues
  • Coverage and service may not be personalized to your area

So, should I choose a local or national carrier?

Well, it depends. 

As we’ve outlined, there are pros and cons for both options, and at the end of the day it will come down to what you’re looking to get out of your insurance as well as your specific coverage needs. 

Of course, if you choose to work with an independent insurance agent, they can help explain every area of your policy and narrow down your carrier options. Want to learn more about what to consider when choosing an agency or carrier? Read our advice in our guide about what to look for when selecting an insurance agency or company. 

Shopping for your personal insurance, like home or car insurance? Then download our step-by-step worksheet on everything you should prepare to receive a quote: 

Download the Worksheet