Cheaper actually is better when you are comparing title firms. Title firms are mostly far over-priced because of hidden (or semi-disclosed) relationships between real estate professionals (or their firms) and title companies. Those financial relationships (kickbacks) cost money and create terrible conflicts of interests.
A title company investigates and examines title and makes important title and closing decisions. Do you really want those decisions influenced by someone who has a contingent fee riding on the transaction closing? Real estate professionals who help their clients avoid those conflicts of interests will find better prices for their clients and far better service.
Imagine the financially distressed home builder who requires home buyers to use their in-house title firm. The title firm finds underlying blanket mortgages, tax liens, unpaid mechanics liens and reports those as objections to title and closing to the home seller who is also the builder. The builder has the power to actually tell the title company to ignore those objections and close the transaction. Not an unlikely scenario for a builder who is strapped for cash. The buyer inherits a mess of title problems, but the builder, Realtor and loan officer all get paid their fees.
You want a title company that is independent of these relationships, one that has attorneys on staff, one that actually shops underwriters on price and coverage and you want a Realtor who knows how to compare title policy coverage and who can navigate these complex issues without exposing you to conflicts. Check with http://www.nailta.org
to find independent title companies near you.
Hope that helps.