YOU ASK:

What auto insurance company rating should I be looking for?

WE ANSWER:

There are so many automobile insurers in America offering competitive car insurance quotes, that selecting the right one is not an easy task. However, rates are not the only thing that matters with automobile insurance companies. You want guarantee that the company you choose is financially sound and that it will be there for you if you need to make a claim.

Why is Auto Insurance Company Rating Important?

The financial strength of an insurer is of paramount importance since it is your money that is at stake in the unlucky event that the company declares insolvency. There are a few organizations offering independent and unbiased rating services that will guide you through the process of comparing companies and selecting the right one.

You should always opt for highly rated companies and avoid companies with low ratings even if the latter offer to sell you auto insurance at very attractive prices. You will lose more money if the insurer fails than you would from paying some extra dollars towards your premiums.

Auto Insurance Company Rating Sources

On its website, the National Association of Insurance Commissioners publishes regular reports and rankings based on each insurance company's performance. You can review each insurer's history and record of complaints. Other organizations that provide auto insurance company rating services are J.D. Power Consumer Center Ratings and Weiss Rating. Here is the sating system each of them uses:

  • J.D. Power collects data based on surveying individual auto insurance owners throughout the country, and rates auto insurers according to the following criteria:
    • Overall experience;
    • Policy offerings;
    • Pricing;
    • Billing and Payment;
    • Contacting the Insurer.

    J.D Power gives the best companies five points, four points - to the ones that are "better than most", three points to the insurers who are "about average" and two points to "the rest".

  • Weiss rates the best companies with A+, A or A- and gives the weakest insurers mark E.
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