A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers Insurance CSR 4 Years

UPDATED: Oct 19, 2021

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Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.

Important facts to know...

  • Co-operative auto insurance companies are smaller, member-run entities designed to offer competitive rates
  • Choosing not to purchase insurance from an established, major provider might be risky for some customers
  • Comparison shopping for better rates on traditional insurance might lead to better deals

Putting the right car insurance in place is a goal careful and responsible drivers seek. Quality insurance supports financially protecting a driver and also covers losses experienced by pedestrians, passengers, and other drivers.

Everyone wants to save money on car insurance, which is understandable. Great rates and deals on traditional auto insurance mean valuable protections are acquired at reasonable costs.

The search for deals may lead some to go in an atypical route.

A portion of prospective customers may be looking outside of traditional sources of insurance. Drivers checking out different rates of insurance might be a bit stunned to discover an alternative to typical auto insurance even exists.

Alternatives do exist. Co-operative car insurance reflects an alternative option.

While co-operative insurance is an alternative, concerns likely linger about whether co-op insurance really is any good. Considering the vital purpose auto insurance coverage serves, no one wants to make a mistake and buy an insufficient policy.

Looking for a better alternative to your current auto insurance? Enter your ZIP code above and compare at least three to four policies today!

What is co-operative car insurance?

A somewhat simplified way to define co-op car insurance entails calling it a policy made possible through a group collective.

A co-operative auto insurance company is an enterprise comprised of members who come together to provide seemingly cheaper car insurance.

Co-operatives may run with less overhead due to not maintaining a corporate executive structure. Executives come with very high salaries and other expenses. Additional costs with the operation of any company contribute to insurance premium being expensive.

By cutting structural and operational costs, co-operative auto policy companies promote themselves with a common underlying theme — those who purchase such a policy end up with a better deal than what is available from traditional car insurance companies.

Potential customers must avoid reading too much into any marketing materials, though.

Anyone reviewing auto insurance policy promotional material does need to be wary of any and all marketing literature. Marketing materials are designed to promote sales. Web sites, brochures, flyers, and the like all put a positive spin on the arrangements.

Critical analysis and less-than-positive reviews do not factor into promotional materials.

Of course, co-operative auto insurance companies need to draw in customers. Advertising serves this purpose. No one can fault any business for running an honest advertising campaign.

Customers need to perform careful research before making a decision to purchase any product or service. Auto insurance, in particular, requires careful scrutiny and deliberation before buying a policy.

The goal of auto insurance, or any insurance policy, is to protect financial assets. The wrong policy might not be able to deliver on this critical need.

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What are the benefits of traditional car insurance?

Customers for co-operative car insurance should also take the time to examine the positive aspects of traditional auto insurance. Those with long-held auto insurance policies do need to think over any plans to make a switch.

Why would anyone want to take a significant risk when relying on $500,000 in auto liability protection to keep from losing a house and all one’s life savings after an accident?

Replacing a tried, true, and well-established car insurance company with a smaller co-operative is a big decision. Such a decision should only be made after arriving at the best decision possible. The decision must be one that includes an understanding of all the facts.

Larger-scale insurance companies have a very easily tracked reputation. A major insurance company with assets in the billions of dollars and decades of experience serving the public. The track record of these companies doesn’t require much work to research.

No insurance company runs smoothly, and no customer can expect and automatically 100 percent favorable outcome with each and every claim.

However, less of a mystery surrounds established, traditional auto insurance companies.

The health of car insurance companies is also logged on several credible industry websites and publications. An insurance company with very little debt, for example, would be a company that would likely appeal to more than one suffering from financial struggles.

Smaller co-operatives would likely be much harder to gain complete and total information on. Researching such a company more difficult.

How can you cut the costs and save money?

The choice to go with a co-operative insurance policy may be made for the purpose of saving money. Whether there truly is any savings to be found with co-op insurance seems dubious.

Standard auto insurance companies do provide alternative options for cost savings on their policies.

Discounts come in many forms, such as:

  • Multi-policy
  • Low mileage
  • Good driver
  • Good student
  • Anti-theft device discounts
  • Accident-free discounts
  • Multi-car discounts
  • Claim discount
  • Military discounts

By combining a few of these discounts, you could get more affordable car insurance rates.

Comparison shopping remains a vital and valuable way to locate discounted rates and reasonable prices.

A common error people make is that they do not look at three or four or more quotes. Doing so helps with the cause of locating reasonably-priced insurance that provides desired protection.

The real question is: Are co-op insurance deals any good? Ultimately, the answer to that question lies with the person who makes the decision to actually purchase insurance.

As far as numbers go, more people seem to prefer going with traditional auto insurance companies for their coverage needs.

A co-op coverage offers an alternative to buying auto insurance from traditional auto insurance companies. However, not every driver can qualify to be a member of an auto insurance co-op.

The small size of co-op companies makes them more vulnerable to risk than traditional auto insurance companies, so very often they don’t accept drivers with bad driving records. Moreover, very rarely, they offer discounts on premiums.

The benefit of joining an auto insurance co-op is that little to none of your money will be spent on paying expenses that don’t directly benefit members of the group, however, this doesn’t mean that you’ll pay lower premiums with a co-operative insurance company.

Are you looking to save on auto insurance? Enter your ZIP code below and start comparison shopping today!