How do automobile insurance companies get their ratings?

How do automobile insurance companies get their ratings?

looking for new auto insurance and some are much less than others but I was told by some that the low quotes are from low rated companies, so how do they define high rated from low rated?

christin

There are several companies that rate the insurance companies. We go with A. M. Best's ratings. The look various items that say how well the company is doing and how likely they are going to have the money to pay claims. A lower rated company does not have as much money, so in the event of a lot of losses they may not have the money to pay all the claims. Example of a major loss is Katrina. Some insurance companies went out of business due to all the money they had to pay.Source(s):I am an personal lines agent in Michigan

Ask

insurance

Popular Q&A

Can the auto insurance company pay me directly for my medical expenses or do they have to pay the doctor?
Your medical insurance provider will collect from the insurance company of the driver who caused your injuries. This process is called subrogation. It is standard practice throughout the US.You are not entitled to dual benefit from your injuries. Go ahead and consult an attorney -- he or...

Does anyone know of Good coverage/ reasonable priced home owners insurance?
There's no "one size fits all" cheapest insurance company. One is best for old houses, one for rural houses, etc.There's no short cut - you'll have to shop around, to find the cheapest one for YOU.You can find a local, independent agent at www.iiaa.org

How much should i sell my car for?
Hey. You're probably right that ?4800 is a bit steep, but anyone who was interested in that would try and get the price down so you should always put a price that's higher than you want to sell for i.e. ?4800 would probably sell for ?4400/4000. You car has a low insurance group, is economical...

Does wawanesa auto insurance cover other drivers not in the family?
I think they do but I don't work for them and I don't know what deal you have with them.Source(s):Ol' '55

How do I get my first legal job in Chicago?
When I graduated from a Chicago law school in 1993 I sent out 685 resumes and got 3 interviews. One of the interviewers came to reception area looked me up and down and said 'you won't fit in here', so I guess I only got 2 interview. Chicago is a tough area because we have so many law schools...