Auto Insurance Rating Information

When shopping for auto insurance a consumer can compare the types of coverage and monthly premiums. He also can check the insurance company's financial strength.

Purpose

A.M. Best and Standard & Poor's rate the ability of an insurance company to pay on a claim. The quality of customer service provided by a company is not part of the rating.

A.M. Best Rating

The ratings by A.M. Best are letter grades from the highest rating of A++ to the lowest rating of D. A company with an E rating has regulatory action about its solvency. A company with an S rating is suspended from doing business, and an F rating shows it is in liquidation. According to Edmunds, you should choose an insurance company with a rating of B+ or higher.

Standard & Poor's Rating

Standard & Poor's rates companies by using scores that range from AAA, which is the highest score, to CC. A company with an NR rating has not been rated, and if it is under regulatory supervision, it receives an R rating.

J.D. Power and Associates

J.D. Power and Associates rates companies using categories of The Best, Better Than Most, About Average and The Rest.

References

• Edmunds: Auto Insurance Tips
• JD Power: Auto Insurance Provider Ratings
• A.M. Best's Consumer Insurance Information Center
• Standard & Poors Property and Casualty Ratings