(Note: These tips pertain to the industry cited above and do not necessarily track our experience with the company in whose report they appear. In particular, industry complaints referenced below are typical of the industry as a whole, but not necessarily every company in the industry.)
Information on the financial strength of insurance companies is available in directories at your local library. These directories include A.M. Best and Standard & Poor's. The Texas Department of Insurance also has information on insurance companies licensed to do business in Texas. You can reach the Texas Department of Insurance toll free at 1-800-252-3439. Before purchasing an insurance policy, be sure to read the contract carefully, and ask your agent for a point-by-point explanation of any language you do not understand. If you are replacing an existing policy, be sure to compare the new policy with your present policy before making a final decision. This means that both the new agent and your present agent should should review the two policies with you. When changing policies, it may be necessary to keep your original policy in force for a certain period of time. It is very common for new insurance policies to require a waiting period before full coverage takes effect, or there may be restrictions on pre-existing conditions. In order to avoid a gap in coverage, do not cancel your old policy until any waiting periods on your new policy have passed.