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How do you know if the auto insurance company that you are about to buy from will be around when you need to file a claim? Will they have the financial resources to pay its claims and how quickly?
The major insurance carries are like blue chip stocks that tend to have solid financial balance sheets but to get the lowest possible premiums you might have to turn to smaller auto insurance companies which may not be a stable. There are a few credit-rating companies that rate insurers for their claims processing abilities and financial strengths:
Go with auto insurance companies that have the highest rating that you can afford. There is usually a direct relationship between the rating and the premium amount. Remember before you by your policy check out the companies auto insurance rating.