Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 24, 2020

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It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

 

Things to Remember...

  • Auto insurance rankings are a good indicator of the financial strength and capability of a particular insurance firm.
  • There are those companies that offer wide coverage while others offer minimal services at reasonable prices.
  • Some indicators that affect auto insurance company rankings include cash flow, asset base, reserve, services offered, and customer rankings.
  • Dealing with a company that appears on the top of the ranks makes you feel comfortable about your investment. It is also an assurance that the company has met all the necessary requirements of a highly ranked company.
  • There are many factors that determine the soundness and financial capacity of auto insurance firms; it is prudent to have all of them in mind when shopping for an auto insurance company.

Auto insurance rankings are a good indicator of the financial strength and capability of a particular insurance firm. There are numerous auto insurance firms in the market and picking one can be an uphill task.

Luckily for you, there are various websites dedicated to offering quotes from different providers. It is essential to do a comparison in order to engage the services of highly-rated auto insurance companies.

Enter your zip code to start comparing rates now!

Why are rankings important?

Insurance firms differ in terms of services and the package offered, the capacity is also different for every firm. There are those companies that offer wide coverage while others offer minimal services at reasonable prices.

The ranking of auto insurance companies is decided based on a variety of contributing factors. Each of these factors is a crucial component of a company’s inner workings and overall service to a client.

The best way to gauge the reliability and dependability of a particular company is by taking time to go through various rankings and make an online comparison of the auto insurance quotes a company is willing to offer.

This gives you a comparative analysis which will eventually help you to make an informed decision. Companies that appear at the top of the rankings are financially stable and in a position to meet your requirements.

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What indicators are used to rank companies?

  • Cash Flow  Insurance companies need enough operating cash in order to honor all its financial obligations towards clients. When the cash base is low, this means that dealing with auto insurance companies for a claim will be a hassle.
  • Asset base  A strong asset base is an indicator that a company can meet its obligation even in the long term. In order to safeguard the investment of the clients, it is vital that a company has a strong financial asset base. This also instills confidence in investors.
  • Reserve  This is another essential element used when ranking top companies. There is a specified limit in terms of reserve that each company is supposed to have. This is more of a security measure in case of insolvency.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

  • Services Offered  The services offered by an individual insurance firm are used to gauge the strength of the company. Providers with a wide base of services are more attractive because this shows that the company is designed to benefit the clients.
  • Customer Rankings – Customer rankings of various insurance firms can be found on your state’s department of insurance. You can start by checking out ratings of insurance firms within your state and compare with other regions.

When searching for an insurance company you can rely on, you should use the above checklist to measure the strength and financial soundness of a company. This further emphasizes the need to compare rankings.

It is best to go for independent sources that offer reviews and a comparative analysis of all the insurance firms. A good ranking website ranks companies using many factors not just cost. They should also be unbiased and not funded by any insurance agency.

Why should you choose highly ranked companies?

Well ranked companies are dependable; you can count on them in case of anything. Due to economies of scale, they are also able to offer you better rates and more services. You are also assured of professional advice.

Dealing with a company that appears on the top of the ranks makes you feel comfortable about your investment. It is also an assurance that the company has met all the necessary requirements of a highly ranked company.

With the help of comparison sites, you are able to get a hold of important information and compare quotes from various providers. This ensures that you only engage the best firm at the most reasonable price possible.

There are also many insurance companies that are fly-by-night companies that may be untrustworthy. The best way to secure your investment is to conduct extensive research on the internet by first looking at the ranks and comparing quotes.

Getting the best coverage will depend on the amount of time you invest in getting a good deal from a reputable company.

Comparison sites list quotes from various companies and you are able to assess and go for the company of your choice, depending on your budget.

There are many factors that determine the soundness and financial capacity of auto insurance firms; it is prudent to have all of them in mind when shopping for an auto insurance company.

Enter your zip code into our FREE online tool below to get quotes just now!

References:

  1. https://www.farmers.com/auto/coverage/
  2. https://www.goodfinancialcents.com/best-auto-insurance-companies/
  3. http://www.iii.org/article/how-to-assess-the-financial-strength-of-an-insurance-company
  4. http://www.investopedia.com/insurance/best-car-insurance-companies/
  5. http://www.investopedia.com/terms/a/asset-base.asp
  6. http://www.investopedia.com/terms/r/reservefund.asp
  7. https://www.libertymutual.com/auto
  8. http://www.dmvnv.com/50_state_dmv_list.html
  9. http://www.dfs.ny.gov/insurance/cauto.htm