Auto Insurance Ratings in 2017: What the Numbers Really Mean

What Are Auto Insurance Ratings?

Auto insurance ratings are numerical or star‑based systems that evaluate the financial strength, customer service, and claims handling of insurance carriers. In 2017, the most widely referenced rating agencies were A.M. Best, Standard & Poor's, and Moody's. These ratings helped drivers assess risk before purchasing a policy.

Key Rating Agencies and Their 2017 Scale

A.M. Best

A.M. Best uses a letter grade from A++ to D, with A++ indicating the highest financial strength. In 2017, the top auto insurers—State Farm, GEICO, and Progressive—held A++ or A+ ratings.

Standard & Poor's (S&P)

S&P assigns ratings from AAA to D. Auto carriers with AAA or AA+ were considered very safe for policyholders. In 2017, Allstate and Nationwide earned AAA.

Moody's

Moody's ratings range from Aaa to C. In 2017, many major carriers held Aaa or Aa1, signaling strong solvency.

Factors That Influenced 2017 Ratings

• Claims Experience: Loss ratios and payout history were primary drivers.
• Capital Adequacy: Reserves set aside for future claims.
• Investment Performance: How well insurers invested premiums.
• Business Model: Growth strategy and diversification.

How to Use Ratings When Shopping for a Policy

Step 1: Check the Rating Agency's Latest Report

Visit the agency's website and search for the insurer's name. Look for the most recent rating, not a historical one.

Step 2: Compare Multiple Ratings

Since each agency uses different criteria, compare at least two sources to get a balanced view.

Step 3: Consider the Rating in Context

A rating is a snapshot. Pair it with customer reviews, claim settlement speed, and coverage options.

Common Misconceptions About 2017 Ratings

Many consumers believed a higher rating guaranteed lower premiums. In reality, premiums are influenced by personal factors—age, driving record, location—while ratings reflect company stability.

Legacy and Current Relevance of 2017 Ratings

Although the 2017 ratings are now historical, they remain useful for trend analysis. For instance, a carrier that maintained an A++ rating in 2017 and still holds a high rating today demonstrates consistent financial health.

Quick Reference Table: 2017 Top Auto Insurers and Their Ratings