How To Check if an Auto Insurance Company Is Legitimate (2024)
Worried about fake auto insurance companies? Check out ratings sites such as A.M. Best, J.D. Power, and Standard & Poor's to find out if a company is reputable.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Oct 18, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto 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 auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 18, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto 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.
On This Page
- The right insurance company has a variety of auto insurance policies or plans to help a car owner protect him or herself
- One of the first things a person should look for to find the best rated auto insurance company is its website
- It is important to read up on any auto insurance company one is considering
- The auto insurance company should be honest and clear about their plans and how they conduct business
The right insurance company has a variety of auto insurance policies or plans to help a car owner protect him or herself. If a person is in an accident, repairs, medical bills, car rentals, and even car replacement can be very pricey.
This is why it is important to invest in a quality insurance plan with a reputable insurance company. Our FREE auto insurance quote tool can help you find good rates when you enter your ZIP code.
Today, the smallest and biggest auto insurance companies offer policies to car owners. It is important to do research to figure out whether or not the auto insurance company is legitimate.
Enter your ZIP code into our FREE car insurance tool to find quotes from legitimate auto insurance companies!
Look at the Website
One of the first things a person should look for to find the best-rated auto insurance company is its website.
Here, one can spot some telling signs about whether or not the insurance group is professional, credible, and reliable. When clicking around the website, consider:
- The design of the space – Professional insurance companies have well-designed websites that are easy to maneuver. There should be very few pop ups, the images should be high quality, and information should be easy to find.
- Clear content or information about policies – It is important that a website includes a variety of information about the different policies offered by the company (i.e. everything from home to auto insurance might be offered by the companies).
- Contact information – There should be clear information about the history and mission of the insurance company. Additionally, the provider website should have clear contact information so that people can call, email, or fill out online forms asking for additional information. Users should never have to input too much personal information like a bank account number or Social Security number.
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Read Reviews
It is important to read up on any auto insurance company one is considering. This is a chance to read current or past customer feedback as well as articles from experts in the industry.
Review can include information about the services the company provides, customer service, and the quotes or rates the group offers.
Reading a number of reviews will help a person select the best insurance policy for him or her.
Similarly, it will help to talk to friends, family members, coworkers, and neighbors about who they have worked with in the past.
They can warn people away from less than legitimate groups and can provide recommendations if they enjoy their current provider.
Talk to the Staff
Giving an insurance provider a call is also important. This is a chance to ask questions about everything from the quotes or rates to the filing of claims and specifics of the coverage.
When talking to staff, one needs to pay attention to the staff member’s professionalism.
The auto insurance company should be honest and clear about their plans and how they conduct business.
At no point should the potential customer feel uncomfortable. Transparency and direct communication are important when talking with legitimate or reputable insurance groups. One’s gut reaction is usually correct.
Read the Policy
A legitimate group will be specific and clear in the written insurance policy. This is a chance to read up on what is and is not covered by an insurance plan.
For example, some policies will only cover car-on-car collisions and not accidents like a tree branch falling on the vehicle. Additionally, some plans will cover glass and some will not.
It is important that a car owner asks questions and thinks about what coverage is needed. A car insurance policy should be customized to a person’s specifications.
Legitimate companies offer all policies in writing and are incredibly detailed about what is included. For instance, one may not want medical bills covered if they already have great life and health insurance.
A legitimate auto insurance company is one that will protect the interests of its customers.
This ensures that a stressful situation like an accident can be dealt with quickly and without tons of paperwork. The best group is one that has a lot of experience, has a proven track record, and is honest about is policies.
This is a huge investment. Car owners need to do careful research so that they end up working with industry leaders.
Get auto insurance research using your ZIP code in our FREE car insurance comparison tool!
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Frequently Asked Questions
How important is it to verify the legitimacy of an auto insurance company?
Verifying the legitimacy of an auto insurance company is crucial as it helps ensure that you are dealing with a reputable and financially stable provider. It helps protect you from potential fraud or scams and ensures that your insurance coverage is valid and reliable.
What are some steps I can take to check the legitimacy of an auto insurance company?
Here are the six steps you can follow to check the legitimacy of an auto insurance company:
- Research the company: Start by researching the insurance company online. Look for their official website, read about their history, mission, and values. Check if they are licensed to operate in your state.
- Verify licensing: Contact your state’s insurance department or regulatory agency to confirm if the company is licensed and authorized to sell insurance in your state. They can provide information about the company’s licensing status and any complaints filed against them.
- Check financial stability: Assess the financial stability of the insurance company by reviewing their ratings from independent rating agencies such as A.M. Best, Standard & Poor’s, or Moody’s. These ratings indicate the insurer’s ability to meet its financial obligations.
- Read customer reviews and ratings: Look for reviews and ratings of the company from policyholders and other reputable sources. This can provide insights into their customer service, claims handling, and overall satisfaction levels.
- Contact consumer protection agencies: Reach out to consumer protection agencies or insurance regulatory bodies to inquire about any complaints or legal actions against the company. They can provide additional information or warnings about problematic insurers.
- Seek recommendations: Ask friends, family, or trusted professionals for recommendations and their experiences with auto insurance companies. Their insights can help you make an informed decision.
What are red flags to watch out for when evaluating the legitimacy of an auto insurance company?
While evaluating the legitimacy of an auto insurance company, be wary of the following six red flags:
- Unlicensed operation
- Poor financial ratings
- Complaints and legal actions
- Unrealistically low premiums
- Lack of transparency
- Pressure tactics or unsolicited offers
Can I rely on state insurance departments to verify the legitimacy of an auto insurance company?
State insurance departments play a crucial role in regulating and overseeing insurance companies. While they provide valuable information and licensing details, it is still recommended to conduct your own research and due diligence. State insurance departments may not catch every potential issue, and personal research allows for a more comprehensive evaluation of an auto insurance company’s legitimacy.
What should I do if I suspect an auto insurance company is illegitimate or engaged in fraudulent activities?
If you suspect an auto insurance company is illegitimate or engaged in fraudulent activities, it is important to take the following five steps:
- Gather evidence: Collect any supporting evidence that raises suspicion about the company’s legitimacy or fraudulent practices. This can include correspondence, policy documents, payment records, or any other relevant information.
- Contact your state insurance department: Reach out to your state’s insurance department or regulatory agency to report your concerns. Provide them with detailed information about the company, including their name, contact information, and the specific issues you suspect. The insurance department can investigate the matter further and take appropriate action.
- File a complaint: File a complaint against the insurance company with your state insurance department or other relevant consumer protection agencies. Provide them with all relevant documentation and details of your experience. This helps create an official record and can assist other potential victims.
- Consult legal advice: Consider seeking legal advice from an attorney specializing in insurance law. They can guide you on the best course of action based on your specific situation and help protect your rights.
- Warn others: Share your experience and concerns with friends, family, and online communities. By spreading awareness, you can help others avoid potential scams or fraudulent insurance companies.
Remember, it is essential to act promptly if you suspect fraudulent activities. Taking swift action increases the chances of protecting yourself and preventing further harm to others.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.