What makes the top ranking auto insurance companies better?

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Things to Remember...
  • When ratings companies rank auto insurance companies against each other, most are ranked by financial health, customer satisfaction and coverage options and pricing
  • The financial health of any insurer is one of the most important indicators regarding the strength of an auto insurance company
  • In most cases, auto insurers are rated on several aspects of the customer satisfaction experience including the approachability of the company during the buying process, service after the purchase and the ease of the claims process
  • The main reason for this is that insurance companies that can offer more products are generally considered more valuable to consumers than those who cannot service all of their customers’ needs

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While each company has a proprietary method they use for determining which insurance companies will top their lists, oftentimes the same insurance companies will find their way to the top five.

The reason for this is that, in most cases, the top five auto insurance companies are simply better than their competition in most if not all of the comparison categories.

Understanding how car insurance companies stack up against each other goes a long way in understanding what makes one company better than another.

Financial Health

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The financial health of any insurer is one of the most important indicators regarding the strength of an auto insurance company. Each of the five major ratings agencies review decides the ranking auto insurance companies have based on the financial health of the company.

Generally speaking, the more an insurer has in assets and the less debt the insurer carriers, the better it ranks against the competition.

The main reason that financial health is so important to an insurance agency’s ranking is that it reflects directly on the claim-paying ability of the company.

Consumers need to know that their insurance company will be there when they need them.

By reviewing the financial health of the company, ranking agencies look at the insurer’s overall financial performance over time in order to determine which companies are the best positioned to not only remain in business but be able to cover claims as they arise.

Customer Satisfaction

Whether or not the insurer is living up to its promises to its customers is another area of insurance ranking.

In most cases, auto insurers are rated on several aspects of the customer satisfaction experience including the approachability of the company during the buying process, service after the purchase and the ease of the claims process.

Once again, those companies that make their way to the top ten list in this particular arena place consistent focus on the customer satisfaction experience and value the way their customers view their companies.

Each rating agency has a different formula for determining how much of a quality auto insurance company each one is in terms of taking care of its customers, but all make a point to survey actual customers as well as review positive and negative feedback listed with consumer advocacy groups.

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Coverage Options

In some cases, but not all, a rating agency will lump the availability of a wide variety of insurance products in with the customer satisfaction rating. But in some cases, this is a separate rating category.

Generally speaking, companies that offer a wide variety of products that address a wide variety of auto insurance needs will find their way to the top of any rating list.

The main reason for this is that insurance companies that can offer more products are generally considered more valuable to consumers than those who cannot service all of their customers’ needs.

In most cases, being able to keep all of your insurance policies with one company will land you opportunities for pricing discounts.

This makes companies who offer more products more valuable and therefore ultimately scoring better with ratings agencies.

Pricing

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Of course, insurance companies who offer the best prices on their products bring more value to the table for their customers and ultimately rank better than more expensive companies in this particular category.

However, basing an insurance purchasing decision on price alone is not a smart practice.

The main reason for this is that while you may be paying less for your policy, you may be insured by a substandard company who may not be financially prepared to pay claims on your behalf and may not be prepared to answer questions or service your needs after the policy has commenced.

When shopping for car insurance, looking to auto insurance rating agencies is one of the best ways to single out the best insurers based on several different categories. These categories can also be directly compared side-by-side in a free online auto insurance comparison.

Keep in mind that while each rating agencies looks at different key indicators to create their lists, in most cases, insurance companies that rank well with one agency will generally rank well with another.

The reason that these companies are at the top of these lists is that they are considered financially stable, have a great reputation for customer satisfaction, offer a wide variety of insurance products that are competitively priced.

This is what sets these auto insurance companies apart from their competition and why they are considered the best. Consider our FREE auto insurance comparison tool to find the best rates possible for you and enter your ZIP code below.

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