Why A.M. Best Ratings Matter

Insurance agents can choose between many different carriers for the products they sell. The insurers they choose aren’t just selected because they have affordable rates or generous underwriting standards; they are chosen because they have been assigned good ratings by A.M. Best.

With new insurance options entering the field every day, it’s more important than ever that you and your agent work to find an insurer with an A- or higher A.M. Best rating that can provide the coverage you need at a price you can afford.

A.M. Best Ratings: Assurance of Financial Security

When you buy an insurance policy, you aren’t just making a one-time purchase that you can walk away from with tangible goods; you are making payments on a promise. Insurers make promises to policyholders that they will pay claims out when they are valid and fall under all the conditions of the policy. How do you know an insurer will be able to afford to pay your claims, should you have them though? Furthermore, how do you know they’ll even be around that long? Without a high A.M. Best rating, you really don’t. A.M. Best measures the financial strength of the insurers you’re thinking about doing business with and assigns them a letter rating based on that measure.

In order to assess financial strength and longevity, they evaluate the company’s balance sheet, profile and performance. The balance sheet discloses their assets and liabilities, which can offer indications of the health of the company and the effectiveness of its management.

A.M. Best: Identifying Insurers You Can Trust

Not only can an A.M. Best rating give you the peace of mind you can only have when you know your insurer is capable of fulfilling its promises, but it also shows you that you are doing business with a company you can trust. When you enter into a long-term agreement as important as one for insurance coverage, one that’s meant to make you whole after a disaster, total loss of home, car or life -- doing business with a company that you can trust is more than just important, it’s necessary.

When you work with Oxford Insurance, you can be assured that we only use the top rated companies to help you make the best decisions for the financial future of your Chicago Auto Insurance. Give us a call to get started.