Here’s what an A.M. Best rating means.

Let’s say you’re shopping online for insurance, and you see a little badge on the insurance company’s website: “A rated by A.M. Best.” Well that sounds good, you think . . . but what exactly does it mean? 

Is it some official institution, or is it just another user-review site? Well, we’re here to break down why an A.M. Best rating is relevant for you as an insurance customer.


Founded in 1899 by a guy named Alfred M. Best, A.M. Best rates over 3,000 insurance companies in 90 countries on their financial strength. Recognized by the government as an official rating organization, the company is like a report card for an insurance company. (There are other companies out there that rate financial institutions, but A.M. Best is the only one that looks exclusively at insurance companies.)

So when you’re looking at an insurance company’s website, here are the different ratings you might see, and what they mean for you as a potential customer:


A++, A+ (superior)

A, A− (excellent)

B++, B+ (good)


An A.M. Best rating of A++ to B+ indicates that the insurance company is financially “secure.” This means that there is less of a chance of the company going bankrupt or out of business; they should have the ability to pay for claims. HiRoad, along with other leading U.S. insurance companies, fits into this category.


Insurance companies like HiRoad earn a good A.M. Best rating by being financially secure.

The following ratings are for companies that A.M. Best thinks are more vulnerable:

B, B− (fair)

C++, C+ (marginal)

C, C− (weak)

D (poor)

E (under regulatory supervision)

F (in liquidation)

S (rating suspended)

You may want to tread carefully with companies that have these ratings, as they may be unable to cover customers’ losses. But with HiRoad’s strong rating, you can be confident that we’ll be there for you in case something bad happens.