With the vast number of available options when it comes to choosing an insurance company, it’s often confusing to separate between companies that fulfill policy obligations and those that are in financial crisis. While you may wonderful how to find a reputable insurance company to purchase vehicle coverage, there are several online tools conveniently at your disposal to do some research to help make an educated buying decision.
Insurer Rating Agencies
The first place to begin your quest for information is by visiting online insurer rating agencies. Such agencies assist in determining the financial valuation of a specific insurance company while boosting consumer confidence. Ratings provide insurers with valuable knowledge to make the decision process a little less daunting. The following are four of the leading free rating agencies:
- A.M. Best- The rating agency provides an independent opinion of an insurance company’s financial stability and its ability to fulfill current insurance policies and contractual obligations. The rating is based on a comprehensive evaluation of the company’s operating performance, balance sheet efficiency and overall business profile. The rating scale ranges from “superior” (A++) to “liquidation” status (F).
- Fitch Ratings – This rating agency offers an opinion of an insurance company regarding its capability for meeting commitments such as policy claims and interest rates. Ratings vary from “lowest credit risk” (AAA) to current or imminent interruptions in payments (C).
- Moody’s Investor Service – A trustworthy insurer rating agency that provides insurance company ratings varying from “exceptional financial security” (Aaa) to “poor financial security” (C).
- Standard & Poor’s – Another reputable rating agency that’s responsible for maintaining the S&P 500 as well as rating the credit risk of an insurance company. Ratings scale from “extremely strong” (A) to payment currently in default (F).
Final Caveats about Insurance Company
Before you can begin your research on one of the above agency’s websites, you must first register with the site to gain access to ratings. Although many online users grimace at the thought of registering, the process is quick, easy and free. A few minutes spent completing the registration information is definitely a worth-while investment.
Keep in mind while rating agencies do analyze the financial stability of an insurance company, the ratings are opinions of the respective agencies. Although rating agencies can provide relevant research statistics to serve as a guiding post, they can’t offer any guarantees that a specific insurance company will fulfill its obligations to policy holders.
Finally, it’s important to compare insurance company ratings between at least five choices. Also, read the guidelines on how each rating agency ranks and categorizes companies. A “B” rating on one scale indicates “good”, however, on another the same rating could suggest “poor financial security.”
Remember that finding a reputable vehicle insurance company doesn’t have to be a daunting task with the available tools to help you find affordable premium coverage from a reliable source!
References:
http://morethanfinances.com/selecting-insurance-company/
http://www.ambest.com/ratings/guide.asp
We have put together unbiased and objective information on how to compare car insurance so you can get the best coverage and save hundreds of dollars every year
