Admitted vs. Non-Admitted Insurance: What’s the Difference?
If you’ve ever been told your insurance policy is with an admitted or non-admitted carrier, you’re not alone in wondering what that actually means. The difference matters—but it doesn’t have to be complicated.
At Barber Insurance, we work with both types of carriers to make sure our clients stay properly protected, especially here in California’s evolving insurance market.
Admitted Insurance Carriers
Admitted insurance carriers are licensed and regulated by the California Department of Insurance. Their rates and policy forms are approved by the state, and if an admitted carrier were to fail, claims may be protected through the state guaranty fund.
These carriers are typically a good fit for standard risks and offer strong consumer protections with fewer additional fees.
The tradeoff? Because they must follow strict state guidelines, admitted carriers may not be able to insure higher-risk properties or specialized businesses.
Non-Admitted Insurance Carriers
Non-admitted carriers are not licensed directly by the state but are legally accessed through approved surplus lines brokers. They operate with more flexibility, which allows them to insure risks that admitted carriers often won’t—such as properties in wildfire-prone areas or businesses with unique exposures.
While non-admitted policies are not backed by the state guaranty fund and may include additional taxes or fees, they are an essential part of keeping coverage available when standard markets pull back.
Which One Is Right for You?
Neither option is “better” across the board. Admitted carriers offer predictability and state-backed protections, while non-admitted carriers provide flexibility when coverage is harder to place. In both cases, financial strength matters—this is why we look closely at A.M. Best ratings when selecting carriers.
How Barber Insurance Helps
As a locally owned agency serving Sonoma County for over 50 years, Barber Insurance understands how to navigate both admitted and non-admitted markets. Our role is to help you understand your options, place coverage responsibly, and make sure you’re protected—no matter which market your policy falls into.
If you have questions about your current coverage or are facing limited insurance options, we’re here to help.