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Auto Insurance Rating
Auto insurance companies have their own rating factors to set premiums for their policies; however, car insurance companies themselves are also rated. Car insurance companies receive ratings on customer satisfaction and financial strength.
These ratings allow you, the customer, to research an insurance company whose given you a quote before signing a contract. Checking customer satisfaction ratings can save you a lot of frustration in the long run. Additionally, checking a company's financial standing help make sure you don't pick an insurer who is at risk of insolvency (not having enough funds to pay their claims/debts).
Types of Car Insurance Ratings
Ratings that are assigned to car insurance companies help potential customers determine the reliability of a car insurance company. You can view:
- Customer satisfaction ratings.
- Financial standing ratings.
- You'll get a rating that offers an indication of how strong the company currently is financially, meaning how likely they are to pay your claim.
Customer Satisfaction Ratings
Certain companies focus on providing ratings that reveal how satisfied customers are with particular car insurance companies. These organizations include:
- J.D. Power and Associates.
- Your state's Department of Insurance website.
- Here, you can find consumer complaint ratios (ratio of valid complaints to the number of premium sales).
- The Better Business Bureau (BBB).
You can find information that includes;
- Coverage options offered to consumers.
- Average price of insurance policies.
- How satisfied respondents are to the way that the insurance company handles auto accident claims.
- Satisfaction policyholders have with representatives at the insurance company (e.g., insurance claims adjuster, insurance agent).
When you're considering which auto insurance company to choose, it's important to take these ratings seriously. You can learn a lot from prior customers that have bought policies, dealt with customer service representatives, and even filed claims with these auto insurance companies. Taking a minute to look at the experiences of other consumers can allow you to pick the company who will work best with you when you need them.
Financial Standing Ratings
Looking at an insurer's financial standing can give you a view into how likely it is to pay out on your claim should you submit one. You can find these ratings at:
These ratings are extremely important when buying car insurance; you don't want to pay premiums month after month only to find that you can't collect for damages when the time comes.
Comparison-Shopping for the Best Car Insurance
As you're shopping for car insurance, make sure to check at least one of the sites that provides customer ratings and one that gives financial ratings. If you plan on relocating to another state soon, also check ratings for insurance companies in that state.
Of course, you can also talk with family, friends, and colleagues and gauge their satisfaction with car insurance companies that you are thinking about taking out a policy through. However, companies like J.D. Power and Associates and state insurance departments will give you a larger sample upon which you can base your decision. The more research you do ahead of time, the more likely you are to find the best insurance provider and policy for you.