how do I know if an insurance company is legitamate?

Question

I've gotten mailings from 21st Century Insurance. But before I bother applying, I want to know if they are reputable.

Answer 1

Aside from checking there financial ratings, you may want to actually check with your State.

Each State and each Insurance Company has to file with the State before they are able to sell any policies in your State, also the State should maintain an Insurance Website ( search for DOI [insert your state]) and with any luck you will have all the information you need.

Good Luck!
 

Answer 2

First, check with your state insurance department to see if they have registered their company with the state. All state insurance departments now have a web site or you can call. If they are registered, ask if any complaints have been filed against them. The state insurance departments are pretty protective of the public and will tell you if a company has been in trouble in the past. If everything checks out there, then look up their ratings as other have suggested. Don't use a company with a low rating, there are plenty of them that have high ratings that offer affordable prices.

Answer 3

Lynn,

Anytime you get solicitations from insurance companies, I would check their financial ratings. These ratings determine the financial stability of a company. You can look at A.M. Best, Moody's, S&P, and Fitch to name a few. All of these services have a guide on what their particular rating for a company means.

21st Century is a reputable company with solid financials. A+ rated according to A.M. Best.

Answer 4

Check A.M. best ratings.

They provide data and research on almost every major insurance company in North America. A++ is the highest rating and indicates the company is financially strong and has the resources to pay claimants.

Answer 5

Legitimate, or reputable? Two different things.

Check with your state insurance department. They can tell you if they're licensed to sell insurance in your state. They can ALSO tell you if there are complaints against them.

You can ALSO check with your BBB.

Answer 6

If any doubt, look closely at the brochure. Does itsay "licensed in.(your state)