It is important to understand the financial strength of insurance companies when you are comparing auto insurance quotes. Several national rating institutions rate insurance companies. You pay less with one company than another for the same coverages for many reasons. Some of it is related to the size of the pool that the company has to spread the risk. The main reason you want to check ratings is to see if the company cant pay future claims or benefits. Financial strength ratings are an analysis of a wide variety of risks that could affect an insurance company's long-term viability. Insurance companies have failed or ceased to operate due to inadequate financial strength, competitive forces, or changing dynamics in the marketplace. There is a belief that ratings are not completely unbiased. In any rating system, preferences can be seen. Here are the major rating companies: