How do I find out if an auto insurance company is reputable?

Make use of auto insurance ratings

When selecting an auto insurance company, you need to be sure that the company is reputable, financially sound and whether or not it consistently pays out its claims. Low auto insurance premiums mean nothing if the company takes a long time to pay out claims and/or is financially unstable.

There are several places online where you can find auto insurance ratings. Standard & Poor’s and Moody’s Investors Service are two reputable credit rating agencies that rate insurance companies based on their financial strength and ability and history to pay claims.

The highest rating that a company can receive is a triple-A rating. At Moody’s, they designated triple-A as "Aa3." Standard & Poor’s highest rating is "AAA." Try to find an insurer with at least an AA rating.