The MarketWatch Guides Team looked closely at the best and cheapest car insurance companies in the country to see how Auto-Owners Insurance stacks up. In this article, we’ll discuss Auto-Owners Insurance reviews, cost and coverage in detail. We’ll also give you some other car insurance suggestions that you might want to think about as you look for coverage. Key Takeaways.
When choosing an insurance company it’s important to consider their financial strength and ability to pay claims. Auto-Owners Insurance is a leading auto and home insurer in 26 states including Michigan, Florida, and Georgia. This article examines Auto-Owners’ A.M. Best rating what the rating signifies, and why solid financial strength matters for consumers.
Overview of Auto-Owners Insurance
Auto-Owners Insurance Group is a property and casualty insurance company headquartered in Lansing, Michigan. Key facts about Auto-Owners:
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Founded in 1916, with over 100 years of experience
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Provides auto, home, business, and life insurance policies
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Operates in 26 states through independent agents
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Over 6,500 employees and more than 5,000 agents
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Insures over 3 million policyholders and $24 billion in assets
Auto-Owners has a strong reputation for customer service, competitive rates, and quick, fair claims handling. Their products include standard coverages as well as options like identity theft protection and rideshare coverage.
Auto-Owners’ A.M. Best Rating
A.M. Best is a global credit rating agency focused on evaluating the financial strength of insurance companies. They conduct in-depth analysis of insurers’ balance sheets, management, policies, and performance.
A.M. Best ratings reflect their opinion of an insurer’s ability to pay policyholder claims. Auto-Owners Insurance has earned an “A++” (Superior) Financial Strength Rating from A.M. Best.
According to A.M. Best, their “A++” rating means Auto-Owners has a superior ability to meet ongoing insurance obligations. This Very Strong rating is the second highest out of 15 ratings that A.M. Best issues.
What an A++ A.M. Best Rating Means
Earning an A++ or Superior rating from A.M. Best signifies:
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Exceptionally strong balance sheet, operating performance, and business profile
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Very low risk of company insolvency or defaulting on claims
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Consistently profitable with sound liquidity and capitalization
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Strong risk management and corporate governance
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Demonstrated ability to perform well even in adverse economic and underwriting conditions
The Auto-Owners A++ rating reflects confidence they can handle expanding premium volumes and take on new risks while meeting short- and long-term obligations.
Why Auto-Owners’ A.M. Best Rating Matters
Choosing an insurer with financial stability is key to having peace of mind that your claims will be paid. Auto-Owners’ A++ rating provides advantages to consumers:
Guaranteed protection – You can trust claims will be paid and lifetime benefits like accident forgiveness won’t disappear even in challenging economic climates.
Added security – Auto-Owners has the resources and disciplined management to withstand major catastrophes and crises without compromising customer payouts.
Company longevity – The exceptional rating means Auto-Owners will be solvent and able to serve policyholders for the long haul.
Leverage for discounts – The financial strength may qualify customers for multi-policy and group discounts with other A++ insurers.
A high rating gives confidence Auto-Owners will keep its promises to policyholders now and in the future.
Reviewing Auto-Owners’ Full A.M. Best Report
A.M. Best’s full report provides their in-depth analysis of Auto-Owners’ finances, management, underwriting risks, and marketplace position. Highlights include:
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Solid capitalization exceeding requirements for risks assumed
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Experienced management team with effective risk controls
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Leading position in independent agency markets
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Profitability compares very favorably to industry averages
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Strong operating results with sufficient liquidity
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Conservative investment allocations limit credit risk
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Diverse product mix distributed across geographic markets
The full Best’s Credit Report on Auto-Owners affirms the consistency and adequacy supporting their A++ or Superior rating.
How Auto-Owners Compares to Other Top Insurers
Auto-Owners’ A++ rating puts them on par with some of the top national and regional insurers who hold Superior ratings from A.M. Best, including:
- State Farm
- Allstate
- The Hartford
- American Family
- Nationwide
- Erie Insurance
- Liberty Mutual
- Travelers
- Chubb
- United Services Automobile Association
Maintaining an A++ or A+ rating signifies these leading insurers are financially equipped to handle rising claims while protecting policyholders’ interests.
What Happens If an Insurer’s Rating is Downgraded?
On rare occasions, an insurer may be downgraded by A.M. Best if their financial outlook weakens. For example, a company may be demoted from Superior to Excellent based on declines in profitability or risk management controls.
In most cases, existing policyholders are not immediately affected by a single-notch downgrade. However, consumers may want to re-evaluate carriers that drop multiple levels as it could indicate developing instability.
Auto-Owners has maintained its steady A++ or equivalent rating since 1927 – proof of exceptional long-term financial strength.
The Bottom Line: Choosing a Highly-Rated Insurer
When selecting insurance, make sure to review A.M. Best and other independent ratings. Auto-Owners’ consistent A++ or Superior rating demonstrates they have the financial capacity and disciplined management to pay claims and maintain strong consumer protection. Choosing a highly-rated insurer like Auto-Owners provides peace of mind that your insurance partner will be there when you need them.
Frequently Asked Questions
Q: What is the highest rating an insurer can earn from A.M. Best?
A: The highest rating is A++ or Superior, which Auto-Owners has earned by demonstrating extremely strong financial performance and stability. Only about 10% of insurers receive A++ ratings.
Q: How often are A.M. Best ratings updated?
A: A.M. Best conducts annual reviews and continuously monitors insurers’ finances. Ratings are formally updated either quarterly or annually depending on the analysis findings.
Q: Is Auto-Owners Insurance related to State Auto Insurance?
A: No, Auto-Owners and State Auto are entirely separate insurance companies and groups. State Auto holds an A rating from A.M. Best.
Q: Does Auto-Owners sell insurance directly to consumers?
A: Auto-Owners only sells through a network of independent insurance agents. Consumers cannot purchase policies directly from Auto-Owners.
Q: What happens if an insurer’s rating is downgraded?
A: Minor downgrades typically don’t impact policyholders. But significant downgrades may lead consumers to switch insurers. Severe downgrades can impact the company’s business operations and indicate developing financial issues.
Are Auto-Owners Insurance Rates Competitive?
Auto-Owners provides some of the most competitive rates on the market for a regional insurer. In terms of average monthly and yearly costs, the table below compares Auto-Owners to other regional and national companies.
| Car Insurance Provider | Average Monthly Cost | Average Annual Cost |
|---|---|---|
| USAA | $126 | $1,512 |
| Erie Insurance | $122 | $1,458 |
| Nationwide | $119 | $1,433 |
| Geico | $133 | $1,596 |
| Auto-Owners Insurance | $135 | $1,619 |
| State Farm | $138 | $1,657 |
| Progressive | $169 | $2,030 |
| Travelers | $133 | $1,595 |
| Allstate | $217 | $2,598 |
| Farmers | $264 | $3,169 |
Certain factors cause auto coverage rates to vary from person to person. We’ll look into the major elements that affect quotes for your estimated car insurance premiums below.
- Location: People who live in cities usually have to pay more than people who live in rural areas.
- Type of car: If you have an expensive car, your insurance rates will be higher.
- Type of driver, age, and marital status: In most states, men, young drivers, and single people will pay more.
- Driving record: If you have a speeding ticket, a DUI conviction, or a recent accident, your rates will go up.
- Credit score: In most states, people with bad credit have to pay a lot more for car insurance.
- Deductible you choose: If you choose a high deductible, your premiums will be less.
Auto-Owners Car Insurance Policy Options
Auto-Owners Insurance offers robust optional coverages for those who prefer stronger policies, including:
- Road trouble service: This service offers roadside assistance services like fuel delivery, battery jump-starts, lockout services, and help with flat tires.
- Extra expense coverage: reimburses for rental cars and covers lodging and food costs if a trip is cut short.
- Your rates won’t go up after your first accident where you were at fault if you haven’t had any major violations or at-fault claims in the last three years.
- Reduced value coverage: Pays you for the drop in value of your car that might happen after an accident.
- Loan/lease gap coverage: After an accident, it pays the difference between how much your car is worth and how much you still owe on it.
- The Personal Automobile Plus package includes 10 extra coverages, ranging from replacing a lost cellphone to protecting against identity theft to rekeying a lock.
If you have Auto-Owners Insurance, you’ll also get a common loss deductible if both your home and car get damaged at the same time. As an added bonus, your auto insurance policy will cover rental cars, and if two Auto-Owners Insurance-covered vehicles are involved in an accident, your collision deductible will not be charged.
One last option is TrueRide by Auto-Owners®, the company’s telematics program. If you choose this plan, a mobile app on your phone will keep track of how you drive. This could lead to lower car insurance rates.