How Are Auto Insurance Companies Ranked? Type of Ranking o Decide on what type of ranking you need. Auto insurance companies are ranked several different ways and by several different organizations. Some organizations rank the company by customer service polls; others rank the company by its financial strength. Both are good indicators, but they show different results. A company with excellent financial strength might not respond to you the way you hope when you need it. A company that has a good customer rating could be financially shaky. You need to look at both. Department of Insurance o Most states show a rank from their Department of Insurance that is by the number of customer complaints the companies receive. If your state doesn't rank the companies by complaint, you can always look for states that do and check out the rankings. It should give a good comparison. J.D. Power and Associates' Ratings o J.D Power and Associates rate companies several different ways. It sends out surveys to thousands of people and then tallies the results. The surveys cover three areas: customer auto claims ratings, buyer ratings and overall auto insurance provider ratings. The overall buyer ratings include factors that don't fit in the other two categories, like offering an annual policy review or making certain the customer knows about new policy discounts. These proactive communications make customers more loyal than the customers with companies that don't make them. The ratings for claims include first contact rating, service interaction, settlement, access to a rental car, repair process and overall satisfaction. New policy purchasers rate the call center, website, local representative, price, types of policies and their overall experience. Keynote o The Keynote Company rates insurance companies that offer policies on the Internet according to the site's ease of use, organization, product information and the least frustrations. Its panel of potential customers also rate the acquisition of a quote from the site by how easy it is, whether they would buy a policy or whether they would return to the site. Financial Rating A.M. Best o If you're unsure of the insurance company and want to confirm that it will be able to pay your claim if you have one, then look to A.M. Best or Standard & Poor for a rating. A.M. Best rates companies from A++ down to D, the lowest rating for active companies. If a company receives a rating of E, there are regulatory problems with the company's solvency. F means that the company is in liquidation process, and S means that it is suspended. Of course, you wouldn't want to go with a company that shows E, S or F rating with C and D a little dangerous. A rating of B+ and above tend to be safest. Standard & Poor's Financial Rating o Standard & Poor's rates go from AAA to CC. If you see one that has an R, it means that it's under the supervision of a regulator, which is not good. NR simply means it wasn't rated, but that doesn't mean it's a good or bad company financially. Try to find one that has BBB or above for your safety.