Look at three things:
- The insurance company’s financial rating. Insurance rating services assist you in evaluating an insurance company’s financial condition (whether the insurance company is able to pay claims now or in the future). Rating services do not evaluate other important issues, such as the clarity of a company’s policy, the scope of coverage in a policy, or a company’s claims handling track record.
- The insurance company’s claims handling track record: Some state Departments of Insurance (DOI) keep records of consumer complaints against an insurance company. To determine whether the DOI in your state does so, contact them directly.
- Scrutinize the actual policy being offered to you.