Admitted vs. Non-Admitted Carriers


Admitted vs. Non-Admitted Carriers

Published March 12, 2024
Last Updated 1 month ago

Understanding Insurance Carriers: Admitted vs. Non-Admitted

Choosing the right insurance can feel overwhelming. One key decision involves the type of carrier: admitted or non-admitted. Let’s break down the key differences to help you navigate this choice.

Admitted Carriers: The Safe Bet with State Backing

Imagine an insurance company that follows strict rules and has a safety net in case of financial troubles. That’s what admitted carriers offer. They’re state-approved, meaning they meet rigorous regulations set by a national governing body.

Think of them like FDIC-insured banks. The government oversees their operations and provides some financial protection in case of company failure. This approval process takes time, ensuring the company is financially sound. However, if they face financial hardship, the state might step in to assist with claim payouts.

Non-Admitted Carriers: Flexibility and Potential Savings

Not all companies go through the lengthy process of becoming admitted. These non-admitted carriers operate independently, with less state oversight.

The downside? There’s no guarantee of state intervention if they encounter financial difficulties. This means you might face challenges receiving claim payments if the company folds. Additionally, you can’t seek help from the state insurance department if you’re unhappy with their claim handling.

However, non-admitted carriers offer some advantages:

  • Broader Coverage: They may cover unique or high-risk situations that admitted carriers wouldn’t touch.
  • Competitive Rates: Freed from state regulations, they can set their own rates, sometimes leading to more affordable premiums.

Choosing the Right Fit: It’s All About Your Needs

There’s no one-size-fits-all answer. The best choice depends on your specific situation:

  • Coverage: Don’t be fooled by the term “non-admitted.” They can sometimes offer wider protection due to their flexibility.
  • Price: Non-admitted carriers can potentially tailor rates to the actual risk, leading to better deals in some cases.
  • Financial Strength: Regardless of admitted status, a financially secure carrier is crucial. Check their rating with AM Best, an independent evaluator.


  • Seek Professional Guidance: Choosing the right insurance requires careful consideration. Talk to an insurance agent to understand your options and find the best fit for your needs.
  • Prioritize Financial Strength: A financially stable carrier is essential, regardless of their admitted status.

By understanding the pros and cons of both admitted and non-admitted carriers, you can make an informed decision and secure the coverage that best aligns with your requirements. For example, choosing an A rated non-admitted carrier is a better option than a C rated admitted carrier as their financial solvency is stronger.

Nóna Phelps

Nóna Phelps

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