Plain Policy Guide
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How to Check an Insurance Company Before You Buy

Before you buy car or life insurance, check that the company is licensed in your state, look at its complaint record with regulators and review its financial strength. Here is how, step by step.

By Plain Policy Guide Editorial Team Published 2 min read

When you need insurance quickly, for example after a DUI or when an SR-22 is due, it is tempting to buy from whoever quotes the lowest price. A few minutes of checking can save you from a company that is slow to pay claims, hard to reach or not even licensed in your state. Everything below can be done for free using public tools from regulators.

Step 1: Confirm the company is licensed in your state

Insurance companies must be licensed in each state where they sell. The NAIC recommends checking your state insurance department's website to confirm a company is licensed. You can also use the NAIC's Consumer Insurance Search (CIS).

Watch the exact name

Insurance groups often sell through subsidiaries with different legal names. The NAIC advises checking your quote or policy for the exact company name before searching. If the company doesn't appear, contact your state insurance department.

Step 2: Look at the complaint record

The NAIC compiles closed, confirmed complaints reported by state insurance departments. Through CIS you can search by state, company and type of insurance for the past three years, and see the most common complaint reasons, such as claim delays or denials.

How to read a complaint index

  • The index compares a company's share of complaints with its share of the market for that type of insurance.
  • 1.00 is the median. Below 1.00 means fewer complaints than expected for a company of that size; above 1.00 means more.
  • The NAIC notes that an index can change because of shifts in the company's own complaints or premiums, or shifts across the whole market, so look at more than one year.

Step 3: Check financial strength

An insurer has to be around, and able to pay, when you file a claim, which matters especially for life insurance. CIS shows basic financial information and how long a company has been in business. Independent rating agencies also publish financial strength ratings; insurers usually display them on their websites. Treat a company with weak or missing financial information with caution.

Step 4: Verify the agent

If you buy through an agent or broker, use the NAIC's free Insurance Agent Search. With the person's name, city and state, it shows whether they are licensed in your state and which types of insurance they may sell.

Step 5: Compare like with like

The NAIC advises against choosing an insurer based on one factor. Compare complaints, financial information and premiums across several companies, and make sure each quote has the same coverages, limits and deductibles. For car insurance, see how to compare quotes the right way.

Extra checks for high-risk drivers

  • Ask if the company files SR-22s or FR-44s in your state, and how quickly. See what an SR-22 is.
  • Ask about payment terms. Some states, such as Georgia for the SR-22A, require prepaid premiums.
  • Read cancellation rules, since a lapse can trigger a new suspension.

If something goes wrong

If you have a dispute about a claim, a delay or a denial, you can file a complaint with your state insurance department. The NAIC suggests gathering your policy, emails, a log of phone calls and photos, and writing a clear account of what happened before you file.

Frequently asked questions

What does a complaint index of 2.0 mean?

It means the company received roughly twice as many confirmed complaints as would be expected for a company of its size in that line of insurance. A figure below 1.00 means fewer than expected.

Where can I see an insurer's complaint record?

Use the NAIC's Consumer Insurance Search. It shows closed, confirmed complaints reported by state insurance departments for the past three years, plus basic financial and company information.

Why can't I find a company I was quoted by?

Insurance groups often operate through subsidiaries with different legal names. Check the exact company name on your quote or policy. If you still can't find it, contact your state insurance department.

Is a cheap insurer that's unlicensed in my state a problem?

Yes. Buy only from companies and agents licensed in your state. Your state insurance department regulates licensed companies and can help with complaints about them; it has far less ability to help with an unlicensed seller.

Sources

  1. How to File a Complaint and Research Complaints Against Insurance Carriers, National Association of Insurance Commissioners (NAIC)
  2. Consumer Insurance Search (CIS), NAIC
  3. Insurance Agent/Broker Search, NAIC
  4. Does your vehicle have the right protection? Best practices for buying auto insurance, NAIC
  5. Need Help with Insurance? Your Insurance Department is Here for You, NAIC

Sources were checked on October 15, 2026. Laws, fees and prices change; always confirm with your state agency or insurer.

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