HELLP!! Auto Insurance?!?

Question

o.k.. so I know NOTHING about auto insurance.. and I need help from someone who ACTUALLY knows what they are talking about haha.

I lost my insurance because I am an "at risk driver"... 1 accident.. 2 tickets.

Anyways.. I got a quote which I can actually afford from a company called "KTX Insurance Solutions".. I just want to know if this sounds like a scam or a legit. company.

they are offering me $500.00 comprehensive coverage... no collision coverage (I have an old car so it isn't worth it)... and $1,000,000 liability.

-- Do you think that this sounds like a good idea??

Any help is needed and thankful for.

Answer 1

don't buy insurance over the net, buy it locally from a local agent

so that when something happens you have someone to help you to handle it

the only company I would recommend you buy over the net is Progressive

Answer 2

1mill sounds like a lot of coverage.  Average liability amount is 100,000 for bodily injury per person, 300,000 bodily injury per occurance and 100,000 for property damage.  Uninsured motorist and underinsured motorist coverage varies from state to state.  Depending on how old you car is and the value of you car will be determining factors as to whether you need full coverage.  Comprehensive coverage is a good idea most of the time as it covers against thing you have no control over.  It sounds like they are offering a 500 deductible which means if you have a loss, the first 500 in damages would be your responsibility.

Answer 3

How did you find this company?

If you are concerned that they are not a legit company - contact the insurance department in your state.  (Insurance is regulated at the state level - not federal).

The insurance department will have a listing of all companies licensed to do business in your state. If TX Insurance is legit - they have to be licensed to do business in the state.  

The insurance department usually has an 800 number for inquiries by the general public. It would probably be better to speak to someone - so you can ask any follow up questions about the company.  

Have the quote materials in front of you when you speak to the insurance department. That way- you can provide the information needed to the insurance department.

You can also check out their A.M. Best rating.  This is a company that rates the financial strength of an insurance company. You do not want to go with a company that rates less than an A.

However, A. M. Best does not rate sales agencies. So if KTX Solutions is the name of the broker selling the policy- AM Best will not be able to help you.

http://www.ambest.com/

Answer 4

All insurance companies are "rated" check their rating.  Try A.M. Best for their rating of this company.  I believe this KTX outfit is only a broker and not an insurance company.  I would be careful.