Research Suggestions to Check Out Auto Insurance Companies
Our suggestion is that you research two or three companies. A good place to start is with the Better Business Bureau, followed by a contact call to your state Insurance Commissioner. You can call the Better Business Bureau in your own area and learn how to inquire if any complaints have been filed. The most effective research, however, is probably through your state Insurance Commissioner. Use the link provided to contact your Insurance Commissioner and obtain information in five topics:
- Ask her how you can learn about the number and types of complaints that have been filed with her against or about a company that you are considering.
- Ask her how you can obtain a count of the number of times a company has been involved in reported litigation, whether brought by the insured against his own company, or by the third party as a bad faith claim.
- What is the reported percentage of first and third party claims the company settles by negotiation, as opposed to arbitration or litigation? Ask her for the statistics relating to the percentage of claims settled, versus the percentage that goes to arbitration or litigation. Would it surprise you to learn that over half of the claims of one of the largest and most popular companies end up in arbitration or litigation?
- Ask her what actions or enforcements she has had to take with respect to any company you are considering.
- Does she know if any of the companies use credit scoring to set premiums, and are there any restrictions in your state on use of credit scoring.
