They can rip you off for hundreds or thousands of dollars to buy insurance that is worthless when you file a claim. The surest way to find out whether a company or agent is real is to call state insurance regulators and ask. There are red flags to watch for, regulators say. This is not a surefire signal, because some good companies are not well known outside the industry. Be suspicious if the name is almost like that of a well-known company but not quite.
Prices are far below what other companies quote.
It's tough to pass up a bargain, but it's prudent to check out extremely low prices. Companies that accurately calculate the cost of providing the coverage you want won't be far apart on price. The people you talk with don't know or won't tell the answers to your questions. Again, this is not surefire, because you may be talking with someone who is new on the job. But any time you are not satisfied with answers, it may be worth a call to state regulators to check for problems.