American Contractors Auto Insurance Review

American Contractors Insurance Group, or ACIG, does provide a type of auto insurance to members, but it is not a personal insurance company and does not have a traditional method of covering cars. The company is actually a private insurance company that uses different methods of providing coverage to their members. The company does not provide personal auto insurance coverage. Get FREE personal auto insurance quotes by entering your ZIP code in our auto insurance comparison tool.

Membership Details

American Contractors is a private insurance company and has a unique method of providing coverage for their members. Before it is possible to obtain any type of insurance through this company, individuals must join the membership program. Only members of ACIG are able to make use of the insurance options.

ACIG membership requires a large sum of cash upon initially joining the company membership program. All members must have at least $75,000 to put toward the mandatory stock purchase. Members are part owners of the company and must have some company stock in the minimum amount. This stock purchase is non-refundable, so all members are putting a large sum into the business success before obtaining insurance.

Beyond the stock purchase, all members are also required to buy a ten year debenture with a cost that might vary. The cost of the debenture is calculated as an estimated ten percent of the gross annual premium of the first year. This estimate might change based on numerous factors like the coverage needed, so the exact amount varies per member. Only after both purchases are complete and the membership is finalized is it possible to obtain any insurance options through ACIG. Find the best car insurance for your needs for FREE by entering your ZIP code in our car insurance comparison tool.

Coverage States

American Contractors Insurance Group is legally able to provide coverage in 49 states and Washington D.C. The only state that the company is not able to provide insurance is New Hampshire. All other states are properly licensed and all insurance options made available by the company are provided.

Types of Coverage Options 

The insurance company only offers coverage to businesses or individuals who are involved in construction. The size of the business is irrelevant to coverage options since large construction companies and independent contractors are all eligible to become members of American Contractors Insurance. As a result of the member’s needs, certain types of insurance are made available.

Workers compensation insurance is one of the major coverage options available through the insurance company. As a dangerous profession, workers compensation insurance helps protect employers and employees from the hazards that might lead to an injury. Since the company is designed around the needs of construction businesses, this is a necessary policy.

The auto insurance offered by the company is basic automobile liability coverage. In the event an accident occurs while on the road in a company vehicle, the insurance group will pay for damages and health services to the other car’s driver and passengers as needed. Full coverage is not available.

General liability for any type of damage resulting from the business or the member are also covered under the insurance group. This might include damage to personal property as a result of an accident or damage to public property.

Default exposures from subcontractors or suppliers are also covered under the insurance group. ACIG provides peace of mind that even if a subcontractor or supplier makes mistakes and defaults, the company will not need to pay the full cost of any damages or problems that result from the exposures.

Historical Facts

While ACIG is currently a direct insurance company for its members, it has not always worked under the same method. The company was originally founded in 1981 under the name American Risk Transfer Insurance Co. Ltd. 

When it was founded, the company focused their efforts on the reinsurance needs of contractors and construction companies. By focusing their efforts on reinsurance, the company was able to help companies with tax benefits and loopholes that saved money as well as providing insurance for workers.

After the tax laws changed in 1986 throughout the United States, ACIG shifted the focus from reinsurance to direct insurance that allowed members to enjoy reasonable insurance and good service.

Service and Claims

Members who join ACIG are partial owners as a result of buying the mandatory stock. As a result, the service and claims department of the insurance group is respectful, efficient and manages claims as soon as possible. 

Anyone who joins ACIG and obtains insurance can expect prompt service and reasonable claims times. This helps provide peace of mind that if an accident occurs at work or on the road, the insurance company will not cause problems and make the process take longer than absolutely necessary. To get affordable car insurance quotes for FREE enter your ZIP code in our car insurance comparison tool.

Rating and Stability Details

The rating for the company is among the top with an AM Best rating of A. This rating shows that the insurance group provides excellent services, has a high customer satisfaction rating and is highly stable when compared to other insurance companies.

Part of the company stability is due to the fact that the members are partial owners of the company and pool the funds to manage claims as they arise. The fees might seem excessive at first, but ultimately it helps maintain ACIG’s stability and maintains the high integrity standards of the insurance group.

American Contractors Insurance is an excellent insurance option for contractors or construction related businesses. Unfortunately, it does not provide personal auto insurance coverage, so it is not appropriate for the average citizen. For those who need insurance for their construction company or contractor services, the insurance group is an option to consider. The workers compensation and auto liability is top-of-the-line. Since it is designed for a specific type of high risk business, it is not the best option for individuals or for other types of companies. Check out our car insurance reviews to compare ACIG to other car insurance companies.