Select Page

Should I look at auto insurance company standings?

FREE Auto Insurance Comparison

 Secured with SHA-256 Encryption

Compare quotes from the top auto insurance companies and save!

Things to Remember...
  • There are several different factors to consider when reviewing auto insurance companies
  • Financial strength, customer service, and a company’s claim processing are all important
  • There are a variety of institutions that provide ratings of the qualities of car insurance providers

Auto insurance ratings can be a bit confusing if you do not know what was evaluated and who is performing the review.

Auto insurance is one of your most important financial purchases, so it is important that you choose a company that not only offers you the best premium rates but also will provide you with excellent customer service, pay your claims quickly and efficiently, and be available when you need them.

Find multiple quality auto insurance companies at once when you enter your ZIP code into our FREE car insurance comparison tool.

Evaluating Auto Insurance Companies

AdobeStock_72478997-1600x1600

Car insurance is a necessary fact of life if you own a car; it is required in 47 states if you want to register your car and drive legally.

The most reliable auto insurance company provides you with financial protection if you are involved in an auto accident. It pays for repairs to your car, any other property involved and for injuries that you, another driver, or passengers may receive.

When you are evaluating insurance company ratings, there are several factors to consider.

First, you should consider the policy rate quoted. Many different things including points on your license can affect your auto insurance rates, including the type of car you drive, the age of the car, your driving record and your credit rate.

Beyond the policy rate, you should also consider customer service, claims processing efficiency, and financial stability.

Each of these factors may have an impact on an insurance company’s rating, depending on what kind of rating system is being used and who is performing the rating evaluation.

Consumer Satisfaction

AdobeStock_41390822-1600x1600

One method of determining the effectiveness of an insurance company’s claims processing services is through consumer satisfaction.

Generally, customers are happy when their insurers pay the claims quickly and easily. Excellent car insurance companies have an automated system in place for claims.

Customers can file a claim online, over the telephone, or in person with an agent. An automated claims system allows body shops to submit estimates for repair services online and receive fast authorization and payment for repairs.

Consumer Reports conducts regular reviews of car insurance companies and their claims processing services.

In addition to claims processing, they also evaluate ease of accessing customer service, policy rates, and policy benefits. You can find the results of Consumer Reports evaluations on their website or by reading their magazine publication.

JD Powers and Associates also conducts annual reviews of auto insurance companies.

Each year they interview thousands of consumers and talk to them about their experiences with car insurance companies. They review customer service, ease of communicating with an insurance company, policy rates, and overall satisfaction.

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

Financial Health

Financial stability is another major factor when looking at auto insurance ratings.

AM Best, Standard and Poor’s, and Fitch are independent financial evaluation companies that publish regular reports on the financial health of insurance companies.

You can find the results of independent financial reviews on review organization websites.

Their ratings are based on letter grades and consider an insurance company’s financial reserves, credit ratings, financial business practices and length of operation in the insurance field.

Insurance companies receiving grades in the “A” range are considered excellent insurance companies and have demonstrated superior financial strength.

Companies in the “B” range are considered good insurance companies with room for improvement. Companies with lower grades are considered less financially stable.

Business Reputation

AdobeStock_93255107-1600x1600

You can also evaluate how well an insurance company is rated based on their business reputation.

The Better Business Bureau frequently publishes reviews of a wide variety of companies, including insurance companies, based on their dedication to customer service.

They also have a certification program for companies demonstrating high levels of commitment to customer service.

The Better Business Bureau also publishes information about complaints lodged against insurance companies by consumers and efforts to mediate and resolve consumer problems.

Department of Consumer Affairs

united-states-of-america-map-1600x1600

Your state also has a Department of Consumer Affairs that evaluates insurance companies operating in your state.

Each insurance company must be licensed before they can operate in any state.

You can find out if an auto insurance company is authorized to provide services in your state by visiting your state’s Department of Consumer Affairs website. You can also learn about insurance brokers and agents license standings.

Additionally, you can find out about lawsuits and complaints filed against insurance agents, brokers, and companies.

When you are buying auto insurance, it is important to get a good rate. However, there are other factors to consider that may be revealed by looking at review ratings.

An excellent car insurance company will be financially stable, have high consumer satisfaction ratings and low numbers of complaints and lawsuits against them.

To find great companies with these qualities, enter your ZIP code into our FREE car insurance comparison tool.

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

[0-9]
[0-9]