It is a good idea to choose a company that has strong financial stability and a history of financial success. These are always steady indicators of an insurance company that knows its business. There are a number of data collection bureaus available online that takes a look at car insurance company’s financial strength ratings. These companies are useful in that they publish ratings for every insurance company’s financial strength, which translates into that company’s ability to actually pay the claims that are filed with it.

Rating description A. M. Best Moody’s Fitch Standard & Poor’s Weiss The Stree
Superior
minimal risk of financial instability, most able to meet claim obligations. 		A++
A+ 		AAA Aaa AAA A+
Excellent
financially strong with excellent claims-paying ability 		A
A- 		AA+
AA
AA- 		Aa1
Aa2
Aa3		 AA+

AA

AA-		 A

A-
Good
good claims-paying ability, stronger than the average company. 		B++

B+ 		A+

A

A- 		A1
A2
A3 		A+

A

A-		 B+

B

B-
Adequate
higher risk than “good” rating. 		B
B-
BBB+
BBB
BBB- 		BBB+

BBB

BBB-		 Baa1
Baa2
Baa3 		BBB+

BBB

BBB-		 C+

C

C-
Below
Average below-average claims-paying ability and financial strength. 		C++
C+ 		BB+
BB
BB- 		Ba1
Ba2
Ba3		 BB+
BB
BB		 D+
D
D-
Financially
Weak high degree of risk, vulnerable to default. 		C
C-
D		 B+
B
B-		 B1
B2
B3
D		 B+
B
B-		 E+
E
E-
Nonviable
extremely risky, in or near default. 		E
F 		CCC
CC
C
DDD
DD
D 		Caa
Ca
C 		CCC

CC

R		 F

It is a good idea to choose a company that has strong financial stability and a history of financial success. These are always steady indicators of an insurance company that knows its business. There are a number of data collection bureaus available online that takes a look at car insurance company’s financial strength ratings. These companies are useful in that they publish ratings for every insurance company’s financial strength, which translates into that company’s ability to actually pay the claims that are filed with it.

This information is particularly useful for the consumer who is considering going with an insurance company that has not yet established national fame. The more well known companies will probably be safe in this respect because they have already established reputations that have placed them at the tops of the charts. However, new companies are opening every day. Do not automatically eliminate one for consideration based merely on the fact that is isn’t as well known as some of the others. Again, finding the best insurance company for an individual depends upon the specific needs of the insurance consumer.

These insurance financial stability rating organizations use a letter grading system with “A++” being the highest, “B” and “C” as respective progressions downward. “E” to indicate some type of regulatory action regarding the company’s ability to pay out on claims, or “F” and “S” to designate whether the carrier is in liquidation or has been suspended. Regardless of all other factors, consider working only with companies that carry a rating of “B+” or higher.

Another scale that is used includes the ratings of “R”, meaning that company is currently under regulatory supervision, and “NR”, designation a “not rated ” status. The letter grades can include modifications that are indicated by a plus or minus sign. In these cases, it is wise to consider only those companies that have a “BBB” rating or higher.