One problem with buying insurance online is that you might wind up sending a substantial amount of money–and trusting your financial security–to an unfamiliar company. How can you be sure you’re sending money to a genuine insurance company?
You can check with your state insurance commissioner to see if the company is licensed to do business in your state. Also, it is a good idea to check with ratings companies such as AM Best, Standard and Poor’s, and Moody’s on the insurer’s financial strength.
Fortunately, the wide availability of data online makes it easier to do that type of research. You can find such ratings via Internet search engines. Go to the various Web sites that offer insurance ratings, and type in the name of your state. Look for a company that’s rated A or above.
You should never to write checks to a third-party, such as a company sponsoring a Web site. Instead, make your checks payable to the insurance company, one that you have researched and has a good rating.
