Rate Auto Insurance Companies – Learn How To Do It

Auto insurance is only as good as the company that provides it. An important aspect of auto insurance is being able to read ratings and reviews on different companies. This provides a prospective insurer a method of measuring the level of the provider’s service.

That way, buyers can know the issuing company is financially solid, and they can make appropriate choices regarding which insurance companies they are willing to wager their finances and properties on.

The following are all respected and highly regarded establishments dedicated to providing objective measures of insurance companies’ creditworthiness: The A.M. Best Company, Standard & Poor’s, and Moody’s Investors Services. Each individual company has its own ways of rating and analyzing the overall performance of auto insurance companies.

The A.M. Best Company, which publishes over 50 different information products about insurance companies and the insurance industry, is the first of these companies. A.M. Best Company was established in 1899. It is best described as a world wide full-service credit rating association which dedicates its energies to providing for the financial and health care service industries, including insurance companies, banks, hospital facilities, and health care system providers. The following is an outline of what the A.M. Best rating system is defined as.

All of these next ratings are considered secure by A.M. Best: The rating of a “superior or A++ or A+”, means the company has showed an overall excellent performance and has a significantly strong ability to fulfill its obligations to its customers over an extended period of time. Given the rating of “excellent or A or A-“score, the company has demonstrated great overall performance and has a powerful ability to meet the needs of policyholders over a lengthy range of time. Companies that are considered to have shown a satisfactory overall performance and have a good ability to meet its obligations to policyholders receive a B++ or B+ rating.

Following is an example of the company’s rating of Selective Insurance Groups. Per the press release from A.M. Best, the company has avowed the financial strength ratings (FSR) of A+ (Superior) and issuer credit rating (ICR) of “aa-” of Selective Insurance Group (Selective) and its seven property/casualty pooling associates. A.M. Best Company concomitantly has declared the ICR of “a-” and the debt ratings of Selective’s parent holding company, Selective Insurance Group, Inc. (SIGI) [NASDAQ:SIGI] (Branchville, New Jersey). Every rating has a stable outlook.