Top 5 Warning Signs Your Insurance Company is in Financial Trouble
600 Insurance Companies have failed since 1976…will yours be next?
RateElert.com, the internet’s leading online insurance exchange that assists consumers with finding the right policy at the lowest rate possible , comprised the Top 5 Warning Signs to look out for so you don’t get stuck with an insurance company who is bankrupt at the time you submit a claim.
Top 5 Warning Signs Your Insurance Company is in Financial Trouble:
1) You have trouble getting to speak with a representative or placed on hold for more than 10 minutes when calling. Shows a decrease in staffing which could be a sign of not being able to keep up with payroll requirements.
2) Their AM Best Rating is downgraded to B++ or worse. AM Best is a rating agency that evaluates the financial stability of insurance companies. You should always have your insurance with an “A “or better Rated Carrier.
3) They increase your Rates by more than 40% . This big of an increase shows a sign of lack of “Capital Reserves” on Hand which means your insurance carrier needs to increase your premiums significantly in order to fund their reserves they need to have on hand to stay afloat.
4) Late making your Claim Payments. If they take more that 60 days to settle your claim…watch out! Your company may not have the money coming in to pay your claim.
5) Your Insurance Company asks the U.S Goverment for Bailout Money! If they are behind AIG in line at the steps of the White House…Look Out!
What Happens if your insurance company fails?
You can be rest assured that your insurance policy is safe and your claims will be paid -within limits- even if your insurance company fails.
Many consumers may be questioning the safety of their insurance policies after the federal government announced an $85 billion bailout of AIG, one of the largest insurance companies in the United States.
AIG had not failed, but it does lack the cash on hand to pay out immediate claims.
With the help of the federal government, AIG will have the money to pays its immediate bills and customers insurance claims. Experts say AIG’s insurance policyholders are safe and that the company will not fail. But if AIG can get into trouble, what about your insurance company?
Insurance companies do fail sometimes, but even when that happens, there are still safety nets the government has set up to protect you.
To help U.S consumers find out more on the financial stability of their insurance company, RateElert will e-mail you the A.M. Best Rating of your particular company after completing a 3-minute online form with information on your car insurance for FREE so you can feel safe and secure knowing you are with a finacially stable insurance company, and who knows you may qualify for a lower car insurance rate in the process!
*All the insurance companies in the RateElert Network are Rated “A” or better by AM Best. (a rating agency that measures the financial stability of insurance companies. If they are an “A” or better…they got the big bucks to pay your claims!)
Find out the AM Best Rating for your company by completing a short, no-obligation form for car insurance now in 3 minutes or less! Click Get Rates below:
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