Determining an Insurer’s Reliability

I am currently with Allstate, but I was offered much lower rates by an agent from a company I’ve never heard of. I want to make sure this is a reliable car insurance company and not just some fly-by-night establishment. I’ve tried to do some research, but I can’t find any information on the insurer. How can I find out if this insurance company is reliable?

Answer

The best place to look into a car insurer’s reliability is your state’s department of insurance website. This site will tell you if the insurer is licensed to do business in your state and will also give you the company’s consumer complaint ratios, which tell you how many complaints were filed against the insurer per every 1,000 claims filed. You want to investigate the company’s financial reliability as well. Check a financial index like A.M. Best or Moody’s to get an idea of how the company is faring. Finally, you don’t want to purchase a policy without first checking on the car insurance company’s customer satisfaction levels. J.D. Power and Associates has a website listing customer satisfaction ratings for most car insurers.