What Are The Types Of Insurance Companies?
There are a few types of insurance companies because there are so many different levels of insurance you may not even be aware of. Have you ever heard of worker’s compensation insurance or a captive insurance company?
To make sure that you are informed about the various types of businesses in the insurance market, we have created this simple guide below.
Standard Insurance Companies
These will insure drivers who have an average risk rating. So, these companies will only insure a driver who has a clean driving record with few claims.
Substandard Insurance Companies
These will ensure drivers who have risk factors that make it hard to be insured by standard companies. For instance, you may need a substandard company to insure you if you:
- Have a salvage or rebuilt title.
- Are a teen driver.
- Are a high-risk driver.
- Need an SR-22.
- Need a non-owner insurance policy.
Policyholders “own” mutual insurance companies. Therefore, they can purchase insurance services from the company and become part “owners.” Policyholders cannot sell their stake in the company to another person, however. Insurance companies may share profits with policyholders in the form of payments. Or, the insurance company may instead keep the profits in exchange for discounts on future premiums.
Stock insurance companies are privately held companies or publicly traded corporations. Stockholders, as well as other stock companies or mutual companies, own these stocks. Stock companies have a specific goal, which is to make a profit for its stockholders. However, the profits or losses of the company won’t impact policyholders.
Do you have any additional questions regarding life insurance, small business, or property insurance? Our insurance agents and customer service representatives are here to help with your car insurance needs. Call us today at 888-949-6289 or visit your nearest Insurance Navy location. Because we care about your convenience, our offices open from 8 a.m. to 9 p.m. CST. Moreover, they are open 7 days a week.
Additionally, we can help you find an insurance quote right on our website. Because we want to help you save money wherever possible, we offer our insurance quotes completely free of charge. By navigating our website, you can also inform yourself about many useful topics, such as coverage for repairing or replacing parts for your car after a crash, how to file a police report, and why you should never admit fault immediately following a car crash.
Lastly, we also have blogs that may help you with any questions you have. For instance, our blogs cover many different topics. From Harley-Davidson’s rider safety courses to proper steps to take after Godzilla damages your car.