FINANCE

insurance

Knowing the best insurance company ratings is integral to buying the best possible policies to cover your health, auto and life. It?s not always the cheapest rate that will garner the best policy. Of course we?d all like to spend less money on the necessities of life and more on the fun things but attention needs to be given to the qualifications of the companies and the adequacy of the coverage being supplied.

What Do Rating Companies Look For?

There are three major companies or services that are in the business of rating insurance companies. Independent rating agencies, these financial analysts make sure that the insuring company is financially sound and will be able to reliably meet its obligations when claims are filed. The rating process measures each company?s overall strengths, evaluating ability to pay dividends, meet liabilities and, acting in the role of prophet, projects the company?s future business prospects.

1. A.M. Best Company

Is the best known and most widely recognized of these rating companies. Publishing over fifty information products to do with insurance companies and the insurance industry they are experts in their field. An insurance company deserving of a A++ from A.M. Best Company has shown superior performance and ?has a very strong ability to meet its obligations to policyholders over a long period of time. Their grading system covers the gamut of possibilities rounding out with an F which signifies that the company in question has been placed under an order of liquidation by the courts.

2. Standard and Poor?s

Is a well recognized name with a reputation inspiring confidence in its judgments. S & P ranks the claim-paying abilities of over 300 insurance organizations worldwide in addition to its other more widely recognized data monitoring. They grant a superior company, one able to reliably meet its financial obligations the rating of AAA. Their lowest form of rating is an R and warns the consumer that the company in question is under regulatory action.

3. Moody?s or Moody?s Ratings

Began ranking the economic viability of financial various institutions in 1909. They do not deem a company to be superior but their highest vote of confidence in the form of an Aa is given to that insurer who they find displays exceptional financial security. C is the lowest rating given and denotes a company that displays poor changes of financial security.

Types of insurance

Any risk that can be quantified probably has a type of insurance to protect it.
Among the different types of insurance are:

Automobile insurance, also known as auto insurance, car insurance is probably the most common form of insurance and may cover both legal liability claims against the driver and loss of or damage to the vehicle itself. Casualty insurance insures against accidents, not necessarily tied to any specific property. Health insurance covers medical bills incurred because of sickness or accidents. Liability insurance covers legal claims against the insured. For example, a home owner's insurance policy provides the insured with protection in the event of a claim brought by someone who slips and falls on the property, and brings a lawsuit for her injuries. Life insurance provides a cash benefit to a decedent's family or other designated beneficiary, and may specifically provide for burial, funeral and other final expenses. Annuities provide a stream of payments and are generally classified as insurance because they are issued by insurance companies and regulated as insurance. Pet Insurance insures pets against accidents and illnesses - some companies cover routine/wellness care and burial, as well. Title insurance provides a guarantee that title to real property is vested in the purchaser and/or mortgagee, free and clear of liens or encumbrances. Travel insurance is an insurance cover taken by those who travel abroad, which covers certain losses such as medical expenses, lost of personal belongings, travel delay, personal liabilities.. etc. Workers' compensation insurance replaces all or part of a worker's wages lost and accompanying medical expense incurred due to a job-related injury.