Choosing a car insurance company is an important financial decision. When you go shopping for car insurance, it is important to take into consideration the financial strength and stability of the insurance company prior to purchasing a policy.
Your insurance policy is only as good as your insurance company’s ability to pay your claim. Buying a less expensive policy will be useless to you if your insurer goes out of business. Not only will you lose any insurance premiums you have already paid, but you will also have to replace that policy through another insurer, often at a higher rate. And you will also have to foot your own bill for any outstanding claims.
The most reliable, financially-stable insurance companies have an AAA or triple-A rating. Most of the major insurance companies are A-rated. However, if you get less expensive quotes from smaller, unfamiliar companies, it is worth your while to check their financial strength rating before you commit to buying a policy. It is recommended that you go with an insurer that has a B rating at the very least.
You can check your insurance company’s scorecard through three major rating organizations A.M. Best, Standard and Poor’s and Fitch Ratings. These organizations evaluate an insurer’s financial strength, and its financial capacity to pay future claims. You can look up your company through these links:
A.M. Best
http://www3.ambest.com/ratings/advanced.asp?bl=0&Menu=Search+Best%27s+Ratings
Search A.M. Best’s extensive database of auto insurance companies and their financial health and stability.
Standard and Poor’s
Use Standard and Poor’s U.S. Insurance Company Guide to look up an insurers financial strength rating
http://info.insure.com/ratings/sandp.cfm
Fitch Ratings
Access the “Fitch Insurance Company Ratings Summary.,” where you can easily look up the financial strength ratings for a wide range of insurance companies.
http://info.insure.com/ratings/fitch/
One other rating agency is Weiss Ratings. Here is a quick list of their Top rated and lowest rated auto insurance companies, based on their financial strength.
(Source: http://www.weissratings.com/HL_auto.asp)
The Ten Strongest Auto Insurers
United services automobile Association
USAA Casualty Insurance Company
Interins Exchange of the automobile club
Protective Insurance Company
Auto-owners Insurance Company
Sentry Insurance a Mutual Company
Country Mutual Insurance Company
Tennessee Farmers Mutual Insurance Company
Kentucky Farm Bureau Mutual Insurance Company
Mercury Insurance Company
The Ten Weakest Auto Insurers
USA Insurance Company
Loya Insurance Company
Tower Hill Preferred Insurance Company
Nevada Capital Insurance Company
Assurance America Insurance Company
Sterling Casualty Insurance Company
Windhaven Insurance Company
Dongbu Insurance Company ltd
Long Island Insurance Company
Quality Casualty Insurance Company Inc
This information is provided for personal, non-commercial, educational and informational purposes only, and may vary from state to state. You must seek the advice of a professional regarding your particular situation.