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Avoid Fly by Night Insurance Companies

fi-4Avoiding fly by night insurance companies is easier than you might think, as all it takes is a little common sense and good ol’d skepticism to spot such companies easily. These shyster insurance companies are good at collecting your premium but not likely to pay a claim.

Signs You’re Dealing with a Fly by Night 

The first sign you’re dealing with a fly by night organization is that you’ve never heard of them. Most of us have heard of most of the big insurance companies, which seem to have agents on every street corner and they fill the airwaves with advertisements. Sticking with the big names can save you lots of grief when you go shopping for car, homeowners or life insurance.

Another sign that you are dealing with less than A rated companies is that the price is much lower than comparable policies. When it comes to insurance premiums, the old saying that if it sounds too good to be true it is usually is applies. If a company is offering a premium much lower than every other insurer get suspicious.

80% of All Drivers Overpay for Insurance. Do You? Start Saving Now. A final means of detecting such companies is the amount of information you can find about them. A big reputable insurance company will have a website that tells you everything you want to know about the organization. If you can only find a few details such as the company’s address become suspicious.

One sure fire way of spotting a lousy insurer is that it doesn’t reveal the ratings it gets from the Big Four Ratings Agencies (Fitch’s, Moody’s, Standard & Poor’s or S&P and A.M. Best). Most insurance companies brag about their ratings from these firms. If you don’t see that information prominently displayed on their website or a rating from some other organization get suspicious. It probably means that they got a lousy rating. A legitimate insurer should have ratings from at least two of those companies posted on its website.

Dealing with a Fly by Night

However, there are situations in which fly by night insurance companies cannot be avoided. If somebody runs into your car and presents you with a card from a fly by night insurer you’ll have to deal with it.

In that situation the best thing you can do is to get their insurance information and send it to your insurer. Your insurance company will have experience dealing with that situation and the resources to tackle the problem.

Fly by night insurance companies must be avoided because they can cause nothing but grief. In insurance you get what you pay for.

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