A.M. Best Ratings for Insurance Companies in 2025 (Scores Explained)

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.

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?

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

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.

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

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.