Is A+ a good insurance rating?

Editorial team Published on

Yes, an A+ rating is an excellent and very strong financial strength rating for an insurance company, though its exact meaning depends on which independent rating agency issued it:

  • A.M. Best: An A+ is labeled as "Superior" and is the 2nd highest of all rating categories (sitting just below A++). It means the insurer has a superior ability to meet its ongoing obligations to policyholders.
  • Standard & Poor’s (S&P), Fitch, or Kroll: An A+ is labeled as "Strong" or "Very Strong" and typically ranks as the 5th highest tier on their respective scales.
  • Moody’s: Uses a slightly different alphanumeric scale (such as A1 or A2) rather than an "A+" code, which still indicates high financial security.

What This Means for You as a Policyholder

  • Low Risk: An A+ rating indicates that the insurer is financially stable, maintains strong capital reserves, and has a very low risk of failing to pay out legitimate claims.
  • Industry Standard for Major Brands: Many large, reputable insurance companies (such as Progressive, State Farm, and others) hold an A+ rating.

What are the top 5 worst homeowners insurance companies?

Based on recent industry surveys like J.D. Power's property and satisfaction studies, the lowest-ranking homeowners insurance companies for customer satisfaction and claims include Universal Direct, Tower Hill Insurance, National General, Homesite, and Foremost.

Lowest-Ranking Home Insurers

  • Universal Direct: Ranks at the very bottom of major customer satisfaction and claims surveys due to slow response times and service issues.
  • Tower Hill Insurance: Frequently scores near the bottom for overall customer experience and policyholder satisfaction.
  • National General: Scores poorly on consumer satisfaction metrics regarding communication and payout handling.
  • Homesite: Routinely lands at the bottom of J.D. Power claims satisfaction rankings for property coverage.
  • Foremost: Receives below-average customer satisfaction scores for handling claims and policy value.

Which rating is better, AA or A+?

An AA rating is better than an A+ rating.

Understanding the Credit Scale

Credit rating agencies like S&P Global and Fitch use letters to show how safe an investment is. Higher letter tiers mean lower default risk.

The general order from highest to lowest is:

  • AAA (Highest quality)
  • AA+
  • AA
  • AA–
  • A+
  • A
  • A–

Key Differences

  • AA Rating: Means the issuer has a very high credit quality and a very strong capacity to pay back debt. It sits just one notch below AAA. Even an AA- (the bottom of the AA tier) is still higher than an A+.
  • A+ Rating: Means the issuer has a high credit quality with low default risk, but it is more vulnerable to bad economic changes than an AA-rated issuer.

Which insurance companies are A+ rated?

Many major insurance companies hold an A+ (Superior) financial strength rating from AM Best, indicating a superior ability to meet their ongoing insurance obligations and pay out claims.

Notable A+ Rated Insurance Companies

  • Allstate (Auto, Home)
  • Amica (Auto, Home)
  • American Family (Auto, Home)
  • Progressive (Auto, Home)
  • The Hartford (Property and Casualty)
  • Lincoln Financial (Life Insurance and Annuities)
  • Pacific Life (Life Insurance)
  • Principal Life (Life and Financial Services)
  • Prudential (Life Insurance)
  • Mutual of Omaha (Life and Annuities)

(Note: Companies like State Farm, GEICO (Berkshire Hathaway), USAA, and Chubb hold even higher A++ ratings from AM Best.)

What is a good insurance rating score?

A good consumer insurance score (credit-based) generally falls above 700 to 770, depending on the scoring model used by the analytics company.

Because "insurance rating" can mean either your personal consumer insurance score (based on your credit history to predict claims) or an insurance company's financial strength rating (how safe the company is), both standards are outlined below.

1. Consumer Insurance Scores (Your Personal Score)

This is a three-digit score used by auto and home insurers to estimate your likelihood of filing a claim. It is derived from your credit report, though it weighs factors differently than a standard lending FICO score.

  • LexisNexis Attract Scale (Range: 200–997):
    • Good / Excellent: 776–997 (Scores over 700 are generally considered good)
    • Average: 626–775
    • Below Average: 501–625
    • Poor: 500 or below
  • FICO Insurance Score Scale (Range: 300–900):
    • Exceptional: Above 800
    • Good: 700–800
    • Risky / Low: Below 600

Note: States like California, Massachusetts, Hawaii, and Michigan restrict or ban the use of credit history when calculating personal auto or home insurance rates. Learn more about how these numbers work in the CNBC Guide to Insurance Scores.

2. Insurance Company Financial Strength Ratings (The Insurer's Safety)

If you are asking about a rating for an insurance provider itself (its ability to pay out future claims), agencies like A.M. Best use letter grades.

  • Superior / Excellent (Good to Buy): A++ or A+ (Superior) and A or A- (Excellent)
  • Good: B++ or B+ — These fall in the secure category, meaning a high likelihood of meeting obligations.
  • Vulnerable / Poor (Avoid): B down to D/F — Indicates high vulnerability to economic shifts or risk of default.

Here to help with all your insurance needs with A+ carriers. 972-357-0741

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What insurance companies should I stay away from?

You should review consumer complaint data and legal evaluations before picking an insurer, as large companies like Allstate, State Farm, and Liberty Mutual frequently rank poorly for delaying or undervaluing claims.

Major Insurers Frequently Criticized for Claims Practices

  • Allstate: Legal and consumer groups often cite this company for low initial settlement offers, strict litigation tactics, and high complaint volumes.
  • State Farm: Policyholders frequently report long wait times, poor communication, and disputes over how storm or property damage is classified.
  • Liberty Mutual: Personal injury attorneys and consumer reports often flag this company for low payout offers and difficulties during the auto claims adjustment process.
  • Progressive: This carrier faces regular criticism for undervaluing vehicle repair estimates and pushing back heavily on injury claims.

Budget and High-Risk "Last Resort" Companies

  • Minimum-Coverage Specialists: Smaller budget companies (such as Fred Loya or Country-Wide) focus on high-risk drivers. They often sell bare-minimum policies that leave you exposed, and they have reputations for poor customer service and slow response times.
  • Guaranteed Acceptance Ads: Any company that advertises zero turn-downs or guaranteed coverage usually provides limited dollar limits and high out-of-pocket costs when an accident happens.

You can read a detailed breakdown of bad-faith tactics in the Colorado Law Worst Insurers Guide.

Who is the most trusted homeowners insurance company?

USAA and Amica Mutual Insurance Company consistently rank as the most trusted homeowners insurance companies based on consumer surveys and independent industry studies.

Top Trusted Home Insurance Providers

  • USAA: Ranks highest for military members, veterans, and their families, earning top scores for customer satisfaction, clear policy communication, and reliable claims support.
  • Amica Mutual: Widely recognized as the best overall national carrier for civilians, scoring highest in customer satisfaction and property claims handling in J.D. Power rankings.
  • State Farm: Recognized as a dependable, massive national brand with strong financial stability and widespread agent networks.
  • Chubb: Highly trusted for luxury and high-value homes, offering specialized coverage and top-tier financial strength ratings.

Key Factors That Build Trust

  • Financial Strength: Look for carriers rated A or higher by A.M. Best to ensure they can pay out major catastrophes.
  • Claims Satisfaction: A smooth, transparent claims process is the primary driver of customer trust.
  • Customer Service: Responsive local agents and clear digital tools reduce stress during the policy lifecycle.

What does A+ AM best rating mean?

An AM Best rating of A+ means an insurance company has a superior ability to meet its ongoing insurance obligations and pay out policyholder claims.

What the A+ Rating Represents

  • Financial Category: It falls under the "Superior" category, which is the second-highest tier on AM Best's grading scale (just below A++).
  • Security Level: Insurers with an A+ grade are considered financially secure, meaning they have a very low risk of going bankrupt or failing to cover valid claims.
  • Evaluation Factors: AM Best assigns this score after reviewing the company’s balance sheet strength, operating performance, and business profile.

What it Does Not Mean

  • It does not measure customer satisfaction, ease of filing a claim, or policy pricing.
  • It reflects the overall financial stability of the company, not how quickly or pleasantly a specific customer service rep will handle your individual claim.

What is an A+ credit rating?

An A+ credit score generally refers to an elite FICO score between 800 and 850, representing top-tier financial health.

What is an A+ Credit Score?

  • Score Range: 800 to 850 on the standard FICO scale (300–850).
  • Lender View: You are viewed as a very low-risk borrower.
  • Benefits: You qualify for the absolute best interest rates, lowest fees, and premier rewards credit cards.

Core Factors that Build Top Credit

  • Payment History (35%): Making every single payment on time.
  • Amounts Owed / Utilization (30%): Keeping credit card balances well below 30% of your total limits.
  • Length of Credit History (15%): Maintaining older accounts over a long duration.
  • Credit Mix & New Credit (10% each): Having a healthy blend of installment loans and revolving credit while limiting hard inquiries.

What is AA vs A+?

An A+ grade represents exceptional mastery (usually 97–100%), a straight A denotes strong excellence (usually 93–96%), and an A- signifies high achievement just below the top tier (usually 90–92%).

Percentage and Range Differences

  • A+ (97%–100%): Shows perfection or work that goes significantly beyond expectations.
  • A (93%–96%): Demonstrates clear understanding and solid mastery of the material.
  • A- (90%–92%): Reflects good comprehension with minor gaps or lower exam margins.

GPA Value on a 4.0 Scale

  • A+: Counts as a standard 4.0 at most high schools and universities, though some colleges or application systems (like law school admissions) count it as a 4.3 or 4.33.
  • A: Equals a 4.0 grade point value everywhere.
  • A-: Drops slightly to a 3.7 grade point value on standard scales.