ADMITTED AND NON-ADMITTED COMPANIES IN THE STATE OF CALIFORNIA
The state protects you when you buy insurance from an admitted company. Admitted companies are companies that are licensed in the State of California. They contribute money to the California Insurance Guarantee Associate (C.I.G.A.) The State sets aside this money to pay claims in case an admitted company goes broke.
Non-admitted companies do not contribute to the C.I.G.A. fund. If a non-admitted company goes broke, there is no guarantee your claim will be paid. However, non-admitted companies are not all bad. The most important thing about a company is their A.M. Best rating, but you should know that you’re asking for trouble if you buy insurance from a non-admitted company with a bad A.M. Best rating.
When insurance prices go up there is a demand for lower prices. In the past this opened the door for scams and schemes. These offers are usually very low, and often they have names that sound like nationally known companies. If you get a quote that sounds too good to be true, be careful, it probably is.
Ask questions. Ask for the name of the insurance company. Be certain to write the entire name down. Then call your broker and ask him to look it up for you. In the past these companies were not rated. They were called "off shore". Many truckers have been hurt by these scams.
If you are in doubt, remember your friends! The A.M .Best Company gives your insurance company a financial report card. The State of California protects you with the C.I.G.A. fund. And a good truck insurance broker can help you avoid problems.
If you are ever in doubt, give us a call. We’ll call the Department of Insurance to check your company’s status and A.M. Best rating. We promise not to play games with your business to make our living.
If you're in California, Oregon, Nevada or Arizona, we'd love to earn your business. Find us online at BerrierInsurance.com or call us at (888) 472-4915.