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How can you rate an insurance company?If you’re buying property and casualty insurance or life insurance, there are at least two questions to ask before entrusting an insurance company with your premiums.First, does the company have the financial stability to pay claims that occur? Second, what is the company’s record for fair dealing and prompt claims payments? Most insurance companies doing business in the U.S. are evaluated annually by the A.M. Best Company, the leading financial analyst of the insurance industry. A.M. Best rates each company on the basis of its financial strength and ability to pay claims. Their highest ranking is A++, the lowest is F. How do you find these ratings? The easiest way is to ask your independent insurance agent, who can show you the most current ratings. Or you can do your own research at the library (if you don’t mind hunting through very thick books) or on the Internet. (Click here to go directly to the A.M. Best web site.) The second question—What is the company’s track record for paying claims fairly and promptly?—is harder to answer precisely. For a statistical comparison, you can consult consumer rating publications that rank companies for customer satisfaction. You can also seek opinions of friends and neighbors who have had claims experience with various insurance companies. They can also tell you how a company’s overall customer service rates. Better yet, ask your independent insurance agent. He or she will tell you candidly about the quality and speed of claims service you can expect from any insurance company.
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