A.M. Best Ratings for Insurance Companies in 2025 (Scores Explained)
A.M. Best ratings for insurance companies help consumers understand financial strength and how it affects car insurance rates. Higher-rated insurers like USAA, which holds the top A.M. Best rating of A++, often offer lower premiums and more reliable claims across auto, life, and homeowners coverage.
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Kristine Lee
Licensed Insurance Agent
Kristine Lee is a licensed insurance agent and one of The Zebra’s in-house content strategists. With a background in copywriting, she covers the ins and outs of the home and car insurance industries. She has been a contributor to numerous publications focused on the nuances of insurance, including on The Points Guy.
Licensed Insurance Agent
UPDATED: Jun 27, 2025
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Jun 27, 2025
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
A.M. Best ratings for insurance companies are essential for making informed coverage decisions. This guide explains how A.M. Best evaluates financial strength, what each rating means, and why ratings can change over time.
We also cover what to do if a company lacks a rating and how ratings affect premiums and claim reliability. USAA holds the highest A.M. Best rating (A++) across auto, life, and homeowners insurance.
- Unrated insurers may be stable but need BBB or state verification
- A.M. Best’s insurance guide ties A++ to A ratings to lower premiums
- A-rated insurers rose from 82% to 90%, showing improved stability
Comparing car insurance quotes is integral to finding the best rates possible. Enter your ZIP code into our free tool today to see what auto insurance quotes might look like for you.
Implications of an Unrated Insurance Carrier
If you can’t find a rating for a specific company, don’t assume it’s insolvent or in poor financial health. Ratings may be unavailable for various reasons, such as being a subsidiary, recent ownership changes, or missing updates.
While a company might not appear on the A.M. Best insurance ratings scale, other major agencies or the BBB Business Profile can offer insights into financial strength and operational reliability. These resources can help you spot signs of poor performance and evaluate if a provider can meet its coverage obligations.
Read More: How can I find the financial strength of a home insurance company?
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Insurance Companies by A.M. Best Rating
The A.M. Best rating scale reveals significant differences among major insurers, with USAA leading with superior A++ ratings across auto, life, and homeowners insurance. State Farm and Travelers also demonstrate exceptional financial strength with A++ ratings in most lines, making them reliable choices for comprehensive coverage.
A.M. Best Ratings From Top Insurance Companies
| Insurance Company | Car Insurance | Life Insurance | Home Insurance |
|---|---|---|---|
 | A++ | A++ | A++ |
 | A++ | A+ | A++ |
 | A++ | N/A | A++ |
 | A++ | A+ | A++ |
 | A+ | A+ | A+ |
 | N/A | A++ | N/A |
 | N/A | A++ | N/A |
 | A+ | A+ | A++ |
 | A+ | A+ | A+ |
 | A+ | A+ | A+ |
Progressive’s A.M. Best rating notably doesn’t appear in this comparison, highlighting how the table focuses on premium-rated insurers. Companies like Geico excel in auto insurance with A++ ratings, which correlates to competitive car insurance premium pricing due to superior financial stability.
Insurers like MassMutual and Northwestern Mutual concentrate on life insurance with A++ ratings but don’t offer auto coverage.
Multi-line insurers with consistent A+ or A++ ratings, such as Amica, Auto-Owners, and American Family, provide excellent bundling options. These superior ratings translate to better claims-paying ability, more stable premiums, and reduced risk of coverage disruption, making them ideal for consumers prioritizing financial security over potentially cheaper alternatives from lower-rated competitors.
Read More: USAA Insurance Review & Ratings
A.M. Best Rating Trends & Warning Signs for Insurance Companies
Ratings for insurance have to be updated frequently in order to be kept up to date. Companies that have less than perfect ratings but are known to be going through restructuring, selling portions of the company, or other financial transactions may be slated for a rating upgrade soon.
Ty Stewart LICENSED INSURANCE AGENT
The chart shows A.M. Best insurance rating stability improving significantly, with ‘A’ or higher rated insurers increasing from 82% in 2017 to over 90% by 2024. Understanding what is A.M best rating is for insurance becomes crucial when evaluating these trends, as temporary downgrades during economic turbulence typically resolve within two rating periods.
Critical warning signs demand immediate attention: rating downgrades of two or more levels, regulatory action by state departments, claims payment delays, and surging complaint ratios.
Red Flags in A.M. Best Insurance Company Ratings
| Warning Sign | Description | Action Required |
|---|---|---|
| Rating Downgrade | Drop of 2+ rating levels recently | Review policies, consider switching providers. |
| Regulatory Action | State insurance department intervenes | Contact agent, explore alternatives immediately. |
| Claim Payment Delays | Reports of slow or inconsistent payments | File complaints, document all payment issues. |
| High Complaints | Surge in consumer complaints | Check complaint trends via state insurance data. |
| Management Changes | Frequent turnover in key leadership roles | Watch financial news and leadership updates. |
| Market Exit | Ceasing policy sales in some states | Check your renewal or plan to switch. |
Management turnover and market exits also warrant monitoring. While restructuring companies may receive upgrades, consumers shouldn’t wait when facing these red flags. Finding the best car insurance company requires regular A.M. Best rating monitoring to ensure coverage with financially stable providers.
Why A.M. Best Ratings Matter for Insurance Companies
Understanding what the A.M. Best ratings are for insurance companies helps consumers assess an insurer’s financial strength and stability. Companies with A++ to A ratings offer more reliable claims support and lower risk across auto, homeowners, and life insurance policies.
Avoid insurers with poor or marginal ratings to protect your coverage. Even unrated carriers may require closer evaluation. Stay informed by regularly reviewing A.M. Best trends, especially during economic shifts, to ensure your provider remains a sound, secure choice. Stop overpaying for auto insurance. Enter your ZIP code to find out if you can get a better deal.
Frequently Asked Questions
What is an A.M. Best rating for insurance companies?
An A.M. Best rating is a letter-grade score that measures an insurance company’s financial strength and ability to pay claims. It helps consumers evaluate whether an insurer is stable and reliable across auto, life, and homeowners coverage, serving as a key indicator of the A.M. Best rating on insurance.
How can A.M. Best ratings help identify the best homeowners insurance companies?
The best homeowners insurance providers often hold A.M. Best ratings of A or higher, indicating solid financial health and a strong ability to cover large claims after property damage.
Why do A.M. Best ratings matter when choosing car insurance?
A.M. Best ratings help identify which car insurance companies have the financial strength to pay claims, especially after major accidents or natural disasters. Higher-rated insurers tend to offer better stability and lower premium risk. Enter your ZIP code to start comparing premiums from highly-rated insurers in your area.
How do A.M. Best ratings affect premiums and discounts?
Insurers with A++ to A ratings often provide more competitive premiums and broader discount eligibility, while lower-rated companies may charge more to offset financial risk.
Read More: Best Car Insurance Discounts
What are A.M. Best ratings insurance companies receive based on?
They’re based on an evaluation of financial reserves, profitability, debt, and operational performance, not customer service or pricing alone.
How does Progressive’s A.M. Best rating impact policyholders?
Progressive’s A.M. Best rating of A+ means customers can expect dependable claims processing and financial security, making it a strong choice for both auto and homeowners insurance based on the A.M. Best insurance rating scale.
Is Bamboo Insurance A.M. Best rated?
As of now, Bamboo Insurance A.M. Best rating is not available. Consumers should review alternative financial sources like Demotech or state insurance databases to assess their stability. Enter your ZIP code to get personalized insurance quotes tailored to your needs and budget.
Can a low or unrated company still be safe to buy from?
Yes, but it’s riskier. Unrated companies might be new, regional, or undergoing changes. If A.M. Best hasn’t rated them yet, verify their stability using state insurance department data or BBB business profiles.
What is the A.M. Best rating for Progressive?
The A.M. Best rating for Progressive is A+ (Superior), which reflects strong financial stability and claims-paying ability across its auto and property insurance lines.
Read More: Progressive Insurance Review & Ratings
Where can I check an insurer’s A.M. Best rating?
Visit www.ambest.com to search for any A.M. Best-rated insurance companies that carry. It’s a reliable source for understanding financial strength before choosing a provider.
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Kristine Lee
Licensed Insurance Agent
Kristine Lee is a licensed insurance agent and one of The Zebra’s in-house content strategists. With a background in copywriting, she covers the ins and outs of the home and car insurance industries. She has been a contributor to numerous publications focused on the nuances of insurance, including on The Points Guy.
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
