What is an insurance AM Best rating?

Asked by: Rocky Schuster  |  Last update: June 13, 2025
Score: 4.7/5 (22 votes)

The AM Best is an insurance rating company used to measure the strength of insurance companies in the marketplace. This ranking is based on the insurance carrier's stability and reputation, because these are strong indicators of the financial health of the company.

What does it mean if an insurance company is not rated by AM Best?

Companies that are reported on by A.M. Best but don't receive a Best's Rating are assigned Not Rated (NR) Categories, such as NR-1: Insufficient Data, NR-2: Insufficient Size and/or Operating Experience, NR-3: Rating Procedure Inapplicable, NR-4: Company Request and NR-5: Not Formally Followed.

Is an AM Best rating of B++ good?

A, A- Excellent Assigned to companies that have, in our opinion, an excellent ability to meet their ongoing insurance obligations. B++, B+ Good Assigned to companies that have, in our opinion, a good ability to meet their ongoing insurance obligations.

Is Progressive a AM Best rated company?

We have received some of the highest financial ratings and honors from A.M Best and other leading organizations, which means that we have a superior ability to honor our insurance commitments and pay claims for our customers.

How much does an AM Best rating cost?

Note: A.M. Best does not charge rated entities any fees for publishing the rated entity's Best Credit Ratings on A.M. Best's publicly available web site.

Why is it that consumers are planning to spend less?

33 related questions found

How does an insurance company get an AM Best rating?

A rating by A.M. Best is based on a comprehensive evaluation of an insurance company's financial strength, operating performance and business profile. A.M. Best also regularly publishes Impairment Studies, which evaluate rating performance over time.

What is a bad AM Best insurance rating?

The Financial Strength Rating is a statistical assessment of an insurer's ability to meet their ongoing insurance obligations. AM Best assigns a financial strength rating from A++ (Superior) through D (Poor).

Which is best Geico or Progressive?

According to the J.D. Power 2024 U.S. Auto Claims Satisfaction Study, both companies scored below average for customer satisfaction. That said, Geico did score higher than Progressive, with 692 out of 1,000 compared to 672. Keep in mind that these are scores based on customer feedback.

What is the Geico AM Best rating?

AA+ rating from Standard and Poor's. Aa1 from Moody's. A++ from A. M. Best.

What insurance company has the best financial rating?

MassMutual has been in business for over 170 years, and carries the highest ratings for financial security from AM Best.

Which insurance company rating service is most accurate?

  • AM Best is one of the most well-known and highest-regarded independent rating agencies in the insurance industry. ...
  • For over 100 years, Fitch Ratings has served the financial community by offering forward-looking opinions on a company's financial strength based primarily on credit risks.

What is the rating of State Farm insurance?

State Farm car insurance review. In Bankrate's 2025 analysis of auto insurance carriers, State Farm received a high Bankrate Score of 4.3 out of 5.0.

What is the rating of State Farm AM Best?

OLDWICK, N.J., October 18, 2024--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A++ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of "aa+" (Superior) of State Farm Mutual Automobile Insurance Company (State Farm Mutual) and its affiliates, State Farm Fire and Casualty ...

What is Progressive insurance rated?

Progressive ranked No. 9 out of 17 companies in J.D. Power's 2024 U.S.

How do I know if an insurance company is good?

On top of using your state's insurance department's website, you can also check complaints and overall satisfaction with the National Association of Insurance Commissioners (NAIC) or JD Power and Associates. These sites will also help you check a company's claims payments history and other financial information.

Who is the most trusted insurance company?

Best car insurance companies
  • Best for customer satisfaction: Erie Insurance.
  • Best for seniors: Nationwide.
  • Best for liability insurance: Auto-Owners.
  • Best for claims filing : State Farm.
  • Best for bundling: American Family.
  • Best for accident forgiveness: Progressive.
  • Best for military members and veterans: USAA.

Is State Farm cheaper than GEICO?

GEICO is cheaper and has better ratings than State Farm. Your experience with GEICO and State Farm will vary based on individual rating factors.

Does Progressive have an AM best rating?

Additionally, A.M. Best has affirmed the ICR of “a” and all issue ratings of the parent holding company, The Progressive Corporation [NYSE: PGR]. The outlook for all ratings is stable. All companies are headquartered in Mayfield Village, OH except where noted.

What two companies are rated AAA?

Currently there are only two companies in the United States with an AAA credit rating: Microsoft and Johnson & Johnson.

What is Geico's AM Best rating?

A++ From A.M. Best

A.M. Best, a leading independent analyst of the insurance industry, has consistently given GEICO its highest A++ rating for financial strength.

Does Allstate have an AM Best rating?

Additionally, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) and all existing Long-and Short-Term Issue Credit Ratings (Long-Term IR; Short-Term IR) of the ultimate parent, The Allstate Corporation (Allcorp).

What are the four main insurance rating companies?

The four major insurance company rating agencies in the U.S. are A.M. Best, Moody's, Standard & Poor's, and Fitch.
  • Understanding Insurance Company Credit Ratings.
  • Special Considerations.
  • Benefits of Insurance Company Credit Ratings.