Car insurance company database
Reader question:
How do I find out if a certain car insurance company is still running and in business?
Lucy
That’s a great question, Lucy.
As many as a hundred indepent vehicle insurance companies go out of business every year nationwide, some because of fraud, others because of a high volume of high costing car insurance claims that they were not able to afford with their low amount of financial strength. For policy holders and people looking to be policy holders, all of this can be very confusing. Many times, when a company goes out of business it will leave ads out, leave its website up, and remain on various sites dedicated to giving free instant car insurance quotes online. This can lead unwary searchers to a dead end.
This is why one of the most important things for you to do when you are shopping around for an auto insurance policy is to check out the website, or at least call, for your state department of insurance. Not only do these websites often contain a wealth of tips and information about state insurance laws and filing complaints about how an insurance company handles your claim, they are also the home of a great car insurance company database for their respective state. These databases contain a list of all of the currently operating auto insurance companies in their state that are licensed by the department of insurance, and thus legal to work with and much more trustworthy. If the company that you are looking at is not listed there, then it is either operating but not licensed, or out of business. Either way, you are done with that company.
Cheers,
Fashun Guadarrama.
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