American Professionals Insurance Company Auto Insurance Review

American Professionals Insurance Company was a subsidiary of the larger Highlands Insurance Group. Along with its parent company, American Professionals Insurance Company filed for Chapter 11 Bankruptcy in 2002.

American Professionals Insurance Company used to sell commercial auto insurance policies. Because of the bankruptcy, people do not purchase auto insurance from this company at this time.

No New Policies After 2002

In 2002, American Professionals Insurance Company and the other subsidiaries had the intention of keeping their companies going. They filed for Chapter 11 Bankruptcy in the hopes of becoming profitable again.

It was in this year that the auto insurance companies stopped writing new policies and refrained from renewing their current ones in order to concentrate on the task of improving their finances. Try our FREE quote comparison tool by entering your ZIP on our homepage!

During this process, American Professionals Insurance Company’s parent company saw it necessary to close several offices and lay off many employees. It also needed to decrease the numbers of premiums it collects.

A Downgraded Credit Rating

Demonstrating that American Professionals Insurance Company and its parent company were having financial difficulties was the fact that A.M. Best, the insurance credit rating agency downgraded the companies’ finances. The companies were in decent territory with the grade of “B,” but in November of 2001, A.M. Best gave it the rating of “C.”

Reasons for the “C” Grade

With a grade of C, American Professionals Insurance Company and its parent company’s financial situations were determined to be “Weak.” Several reasons were mentioned for this new lower rating, including:

• The company’s weak capitalization
• Low profitability
• The inability to perform actions to improve financial matters
• The parent company’s debt servicing requirements
• Unsuccessful underwriting practices
• The need to pay high dividends

The items on the list above all contributed to American Professionals Insurance Company and its parent’s financial downfall.

What Led to the Companies’ Downfall?

People can see how American Professionals Insurance Company and its parent lost about 51 percent of its surplus by studying what happened in the year 2000. In the third quarter of that year, the companies experienced a $30.5 million loss. At the same time, they only had a $3 million gain. They were also $49 million in debt.

Too Many Asbestos Claims

What caused American Professionals Insurance Company and its parent to lose the ability to continue writing insurance policies? American Professionals Insurance Company offered commercial insurance products to businesses, worker’s compensation among the coverages.

When the company was hit with a large number of asbestos claims, it began to lose financial ground.

Apparently, American Professionals Insurance Company and its parent have been out of business since the year 2007. Even so, the company still has an address and a telephone number listed.

275 Phillips Blvd.

Trenton, NJ 08618-1426

Telephone Number: (609) 896-1921

Fax Number: (609) 883-9004

American Professional Agency

People in need of auto insurance for their personal or professional needs who were looking for American Professionals Insurance Company may have had another company in mind. American Professional Agency is an insurance agency that currently sells insurance products.

The fact is that American Professional Agency does not sell affordable auto insurance. It’s a company that sells liability insurance to those in the medical profession. It also has a division of health insurance that is targeted toward those in the medical profession. As people who are reading this review are looking for cheap auto insurance, American Professional Agency is not the appropriate company for them.

Chartis and Allied World Assurance Company

A further look into American Professional Agency leads to Chartis and Allied World Assurance Company. The policies that American Professional Agency services are written through Chartis or Allied World Assurance Company, but neither of these companies appears to write policies for auto insurance. It seems that people will not be able to find auto insurance from American Professional Insurance Company or American Professional Agency.

American Professionals Car Insurance Company

One company does exist that is called American Professionals Car Insurance Company. This company actually does sell auto insurance and sells several types of coverage, including collision, comprehensive, liability coverage for injuries and property damage, insurance against uninsured or underinsured drivers, roadside assistance and reimbursement for rental cars.

The company described above is located in Trenton, New Jersey. It does not have a website, so it is difficult to find out information on this company. What little data that is known is the fact that the company first opened its doors for business in 1955, and it is still going to this day.

The Financials

Unlike the American Professionals Insurance Company, American Professionals Car Insurance has capital of over $3 million, a surplus of over $2 million and assets in the amount of over $7 million. This company has longevity, as it has been in business for 57 years, and it has a surplus, so it does not appear to be in danger of going in the same direction as American Professionals Insurance Company.

Obtain Quotes from Several Auto Insurance Companies

On this website, people will find a comparison feature that will give them free quotes. They only need to enter their ZIP codes to be taken to the FREE comparison page that asks for a small amount of information. Then, the companies represented will be able to offer a quote for commercial or personal auto insurance, and it only takes a few minutes.