Reader’s Question:
Are there ways to assess auto insurance company rating? I am eager to get insurance quotes, but do not know how to choose the right company and compare ratings.
Roy
Jefferson City, MI
Yes! There are ways you can compare auto insurance company rating. You can do this by visiting their websites. One way of making your task easy and convenient is by visiting your state’s department of insurance. The department publishes consumer complaint ratios for all insurance companies situated in your state. This will give you enough idea on how a company performs over a given period of time for handling claims/loss ratio. Experts do recommend using this ratio when comparing auto insurance companies as big-named companies do not always prove to be good providers.
After comparisons have been made among your preferred auto insurance companies, jot down their advantages over the other company. Also do not forget to write down their specific benefits, special offers and so on. After you have done this, rank them according to your preference.
Next, make inquiries to local body shops and ask for their recommendations. These body shops will likely give you an idea on how these insurance companies deal and transact business especially on covering for damages due to collision. They know too well which company has the sweetest claim process, and which company uses aftermarket parts over (OEM) original equipment manufacturer parts for replacement.
Finally, if you do not have the time considering all of the above suggestions, you can always verify auto insurance companies’ standing and financial strength by checking on their approval ratings. You can do this by checking on A.M. Best and Standard & Poor’s rating; both company ratings will serve as a credible source of information. The A.M. Best rating grades company from A++, the highest standard, to D as the lowest. Sometimes a grade of E is given as an indication or notification of a company’s solvency. Other ratings include: F for liquidation and S for suspended. A B+ rating should be the least of your concern; therefore, any auto insurance company graded lower than B+ should be your lowest priority.