Top Rated Auto Insurance Companies

The smartest drivers search for top-rated auto insurance companies rather than those that are merely the cheapest. Auto insurance companies that have high ratings are more likely to provide expert service in the event that you are in an auto accident or suffer a loss. Understanding what goes into being a top-rated auto insurance company is of the utmost importance when you are searching for car insurance.

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Understanding where to find ratings about auto insurance companies is also paramount to finding the best auto insurance company for you. There are many different ratings at which to look, and each has its own system. Keep in mind that you want an overall average of good ratings rather than just one really high rating in any particular area.

Characteristics of a Top-Rated Auto Insurer

The thing that makes an auto insurance company a top insurance company can vary from driver to driver.

However, there are a few characteristics that truly define the top auto insurance companies.

First and foremost, the best auto insurance companies have a good reputation with customers and in the industry.

Furthermore, these top-rated car insurance companies also have a firm financial footing, which means that they will be there for you to pay your claim if you ever need it. Other features that may matter to you include the company’s donations to charities, involvement in the community, and environmental impact.

If you make your auto insurance decisions based on which company is the cheapest, then you’re likely not using one of the top-rated auto insurance companies. Auto insurance provides a needed safety net against financial hardships and injuries in the future, so you really need to go with a car insurance company that provides more than just the cheapest prices.

Top Customer Service Ratings

One of the most important characteristics of a top-rated auto insurance company is good customer service across the board. This means that they take care of their customers during the buying process, the claims process, and everywhere in between. A valuable resource for finding a car insurance company’s reputation for customer service is J.D. Power and Associates.

J.D. Power and Associates conducts annual ratings on car insurance providers based on customer satisfaction surveys.

It rates companies on an array of factors, from the buying process and the claims process, to the customer service of the company in general.

J.D. Power and Associates uses Power Circles to assign ratings; five out of five circles is the highest rating available.

The top-rated auto insurance companies likely have four to five circles in most areas. Companies that only earn one or two circles more than likely have serious issues with the services they provide. Obviously, not all customers are going to be pleased 100% of the time. However, if the vast majority of the customers surveyed are unhappy with the company, then that raises a red flag.

Another resource for finding customer-based ratings is the Better Business Bureau. The Better Business Bureau has been in operation for more than 100 years, all with the goal of improving business practices for the consumer. It rates companies such as auto insurance providers on many different factors.

One of those factors is how the auto insurance providers resolve customer complaints filed with the Better Business Bureau. The Better Business Bureau utilizes an alphabetical ratings system, with an A+ rating being the highest.

Low ratings from any ratings organization should give you, the consumer, a reason to pause.

It takes quite a large amount of customer complaints to pull down the overall rating of a large insurance company.

Top Financial Ratings

Another really important factor concerning the top-rated auto insurance companies is their financial ratings. Financial ratings look at the fiscal stability of auto insurance providers, to ensure that they have the resources to fulfill their financial obligations. Essentially, you need to be assured that your car insurance provider will be able to pay any possible claims you may make in the future.

The U.S. Securities and Exchange Commission selects certain ratings companies as Nationally Recognized Statistical Rating Organizations, or NRSROs. Common ratings companies designated as NRSROs include Fitch Ratings, Standard & Poor’s, and A.M. Best. These ratings companies rate everything from companies to countries, in order to give a forecast of future financial stability.

The top-rated auto insurance companies will have strong ratings from multiple NRSROs. Mostratings companies utilize an alphabetical ratings system along with pluses and minuses. A strong rating might look like A+, AA or even AA+.

Those companies with low ratings do not have the financial resources to weather negative events. Examples of such events include a poor economy, a shift in the financial markets, or a catastrophe such as a hurricane or earthquake that will create a large amount of claims all at the same time.

Furthermore, ratings for car insurance providers should also be strong for the present and going back for a year or two.

Most car insurance companies will brag about high financial ratings on their websites, but they might refer to ratings that are five years old! The best course of action is to check out financial ratings for yourself with two or three financial ratings companies that are labeled as NRSROs.

Biggest Not Necessarily the Best

Many of the biggest car insurance companies out there claim to be the best, but such boasts are not always factual. Many of the largest car insurance providers really only have the greatest amount of customers because they advertise the most on television and the radio. The 2011 Market Share Data compiled by the National Association of Insurance Commissioners lists the top 25 auto insurance providers, and the top four include some very popular names.

While the biggest can’t hold that title for a long time without strong financial ratings, they aren’t always very successful in customer service ratings. Unfortunately, many customers feel like a number rather than a valued customer due to the extreme size of the larger auto insurers. However, those companies that are the biggest are able to offer some great rates, so it is up to you to decide if low rates or truly excellent customer service is the best way to go.

Neither Is the Oldest

While the biggest car insurance companies are a mixed bag when it comes to being rated at the top, what about the oldest car insurance companies? Many car insurance companies have cropped up over the years, but a few have been around for quite a long time.

Common sense would tell you that those auto insurance providers that have been around for a long time must be doing something right, so the oldest car insurance providers should be rated among the top.

In this case, common sense is mostly correct. Most of those auto insurance companies that are among the oldest in the United States are also those that have earned top marks from financial rating organizations and customer satisfaction surveys. Essentially, the oldest car insurance companies probably do know a thing or two about the best practices in terms of customer service and building a strong financial footing.

Finding the Best for You

Every driver has different car insurance needs, so it is up to you to determine those factors that make an auto insurance company top-rated. You may desire a car insurance company that has a local office for you to speak face-to-face with an agent, or you may desire a car insurance company that allows you to conduct all of your business online.

Furthermore, most drivers are looking for car insurance that is affordable, so price generally is one of the top factors that determines the overall worth of an auto insurance company. Finding auto insurance that is a good value from a top-rated company is easy to do if you know where to look.

First, you need to utilize quote comparison websites to get a range of quotes for your personal driving record and vehicle. Quote comparison websites take your information and send it out to various car insurance providers, who then send quotes back to you. In this way, you quickly and easily get a wide range of car insurance quotes from which you can choose.

Next, utilize financial rating providers and customer service satisfaction ratings in order to determine which of your quotes are from top-rated auto insurance companies. Such ratings might be the tiebreaker between two companies, or they might be a warning that keeps you from buying car insurance from a provider that is not a top-rated auto insurance company.

In this way, you will have the peace of mind to know that your hard-earned dollars are going to the best auto insurance provider. You will also know that your car insurance coverage will be there for you in the event of an accident or loss, and that you will more than likely have all the help that you need.

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