What does the AM Best or Standard and Poors Ranking Mean?

When you search online, consumers will find that all of the vehicle service contract companies refer to the Insurers rating. What is this rating? Why is it important?

This rating is established by an independent rating agency. Two of the largest and most respected are A.M. Best and Standard and Poors. A.M. Best ranks companies in two categories (Secure and Vulnerable). The ratings are as follows:

Secure
A++, A+ (Superior)
A, A- (Excellent)
B++, B+ (Good)

Vulnerable
B, B- (Fair)
C++, C+ (Marginal)
C, C- (Weak)
D (Poor)
E (Under Regulatory Supervision)
F (In Liquidation)
S (Rating Suspended)

The ratings are pretty straight forward, if you find that the company is backed by an insurer with a rating below B+, then the consumer should take a closer look at that company before purchasing.

In case your wondering, www.warrantyelite.com is backed by a "A" rated provider.