Glossary
AM Best Rating
A measure of an insurance company's financial strength and ability to pay claims.
What is am best rating?
AM Best ratings measure an insurance company’s financial strength — its ability to pay claims now and in the future. Ratings range from A++ (superior) down through B, C, and D (vulnerable).
Details
Financial strength matters because insurance is a promise to pay claims later. If the insurer is financially weak, that promise is weaker. Most major carriers carry A or A+ ratings. Anything below A- is worth questioning. AM Best is the most widely cited insurance rating agency; S&P, Moody’s, and Fitch also rate insurers.