Guides / Judging insurers
Insurer financial strength ratings
What AM Best and other ratings mean for you as a driver.
Financial strength ratings are independent opinions on an insurer's ability to pay claims. They're not a measure of service, but a weak rating is worth knowing about.
The main rating agencies
- AM Best, which focuses on insurers
- S&P Global Ratings
- Moody's
- Fitch Ratings
Reading ratings
Each agency uses its own scale. Higher letter grades indicate a stronger opinion of the company's ability to meet its obligations. Look up the specific company that would issue your policy.
If an insurer fails
Every state has a guaranty association that pays covered claims, up to limits, if a licensed insurer becomes insolvent. Coverage from unlicensed insurers usually isn't protected this way.
Educational information, not insurance advice. Coverage and rules vary by state and insurer; your policy documents control. Trusted Auto Insurers is not an insurer, agent or broker and takes no commissions.