When you consider buying an auto insurance you would do well to research to find the best one suited to your needs. Insurance companies are rated on many different factors and one area of service that is important to you may not be so for someone else. It is therefore a matter of opinion to say which company is the best and the ratings just indicate the how the company fairs in many areas of service and in terms of their performance, financial strength, claim service and customer satisfaction. The other factors include the company’s size and credit rating. Independent rating agencies determine the ratings of auto insurance companies. Companies with ‘A’ ratings and above are considered to be safe to insure with.
Moody’s, A. M. Best and Standard & Poor’s are the three companies that are engaged in the credit rating of auto insurance companies. Credit rating is tops in importance as it is an indicator of the insurance company’s financial stability and its capacity to settle claims. Lack of financial strength means problems when you file a claim. The companies with ‘A’ rating and above ratings are much sought after by consumers.
According to S & P ratings, the following insurance companies emerge as the best:
- Amica Mutual: Winner of the 2008 best overall auto insurance carrier and rated AA+ by S & P.
- GEICO: GEICO is rated AAA by S & P.
- Nationwide: Now has AA rating.
- Progressive: Has AA rating continuously.
- State Farm: Enjoys AAA rating based on its market share and good numbers.
JD Power rates the auto insurance carriers based on their customer service and feedback of customers to determine how well they respond to their customers. Based on customer support JD Power has rated the following companies:
- Amica gets the highest rating for 9 consecutive years.
- American Family Insurance gets the second highest rating
- GEICO and Progressive get 3 points out of 5.
- State Farm gets the highest rating for the ease with which customers received prompt and great service at the time of filing claims.
AM Best rates the auto insurance companies based on their financial stability enabling the customers to determine which company is best for them. Most auto insurance companies display the rating on their websites. The following companies are rated ‘A’ and above by AM Best.
Admiral Insurance Company: Rated ‘A+’ (Superior) by A.M. Best
- Carolina Casualty Insurance Company: Rated ‘A’ (Excellent) by A.M. Best
- Nautilus Insurance Company: Rated ‘A+’ (Superior) by A.M. Best
Going by the number of current insurance policies, the consumer can understand that they are good to insure with. The auto insurance companies with the largest customer base are:
1. State Farm: With more than 30 million policies this company enjoys 18 percent of the market share.
2. Allstate Insurance: Policies exceed 20 million.
3. GEICI: This is also rated as the fastest growing auto insurance company with nearly 10 million policies.
4. Progressive: Has 8 million plus policy holders.
5. Nationwide: Has 5 million policyholders.
‘A’ rated companies are known for their superior performance in terms of customer service, claims settling and financial strength and more reliable than others in the business.