Because of the strict standards that major insurance companies are obliged to work to, the possibility of purchasing a policy from a less-than-reputable company is actually quite remote. However, the rapid burst of growth seen in the auto insurance market in recent years has produced a slight rise in the number of companies that fail to deliver on their promises of exceptional service, competitive pricing and adequate cover.
If an insurance carrier has registered for membership with the Association of Insurance Commissioners, there is a stronger likelihood that they can deliver on their promises. A satisfactory insurance rating is also a clear indication of credibility. If an auto insurance company cannot boast match either of these requirements, there is a strong possibility that their service will eventually prove to be unsatisfactory. Reputable companies are usually proud of their business reputation and an endorsement from a governing body is often a clear indication of excellence.
Profile can be another excellent indication of company performance. At the very minimum, a preferred insurance carrier will use a professional company website and advertise nationally. A lack of profile can often indicate a lack of professionalism and if an insurer doesn’t have the business acumen to promote their services effectively, there’s no guarantee that any subsequent claims made through will be handled effectively either.
Consumers should be able to check the claims record of their chosen auto insurance company to determine whether a policy purchase might be worthwhile. If the claims register indicates a large number of complaints based on failure to pay out on what appear to be legitimate claims, motorists would be best advised to find an alternative insurer with a better track record of prompt and effective settlement.