Car Insurance Company

Reader’s Question:

Hi there! I hear there are so-called car insurance companies that commit insurance fraud. I’d like to get a good deal, and there are some not-so-popular companies that offer insurance. How can I find out if these car insurance companies are okay?

Guilly

Long Beach, CA

True, a smaller car insurance company may offer good deals to potential clients to gain some market share in the business, but it does pay to do some background checks on a car insurance company before signing up for an insurance policy with them.

You may want to check how your car insurance company is rated by the companies that rate financial institutions. There are several of these, the most popular of which are Standard & Poor’s and A.M. Best. Stay away if your car insurance company is rated C or lower. Try to hook up with a car insurance company that has a rating of B and higher.

You should also look at the costs of the policies they offer. Of course, it has to be a car insurance company that is well within your budget. You might also want to look into forums that discuss different car insurance companies. From there, you get a feel of how they serve their clients and if their claiming processes are too bureaucratic or not. This will help you avoid a car insurance company that may give you a hard time when you need to file a claim against your car insurance policy. Good luck on the hunt.