Getting car insurance is a much easier process nowadays. With the advent of the internet, more insurance companies have made their services available. Consumers now have access to a wide array of choice.
It’s also important to compare these companies using car insurance company ratings to ensure that you get a complete picture.
How car insurance company ratings work:
There is a vehicle rating system, based on items such as make, model and safety ratings. The vehicle rating helps insurance companies determine the risk of insuring your particular vehicle.
The higher the rating, the higher the risk for the insurance company, which translates into higher premiums for you.
Then there are car insurance company ratings, which can be used as guide to determine how well an insurance company is run. These ratings are good indicators of how likely an insurance company is going to be able to pay out in the event of a claim.
Customer satisfaction ratings:
Customer satisfaction ratings are usually based on actual customer reviews.
When comparing car insurance companies, it’s important to consider car insurance company ratings.
Financial strength ratings:
These ratings are based on the company’s financial standing.
An insurer rated “AAA” has extremely strong financial security characteristics.
An “AA” rating indicates very strong financial security characteristics.
An “A” rating is strong, but shows that the company is somewhat more likely to be affected by adverse business conditions than are insurers with higher ratings.
An insurance company with a “B” rating has weak financial security, while one with a “CCC” rating has very weak financial security.
The rating is a current opinion of the financial security characteristics of an insurance organisation with respect to its ability to pay under its insurance policies and contracts in accordance with their terms.