Ameriprise Car Insurance Company Review
Ameriprise Car Insurance Company is a division of Ameriprise Financial, Inc., a company that provides insurance and a broad line of financial products and services such as investments and retirement planning. Started in 1894 by a man named John Tappan in Minneapolis Minnesota, the company is incorporated in Delaware and also has offices worldwide. History highlights include a $780 million buy-out by American Express in 1984 and the change to the current name in 2005.
Ameriprise started its car insurance division in the 1990s, and it is now grouped with home insurance. Headquarters for the Ameriprise Auto & Home Insurance division are in De Pere, Wisconsin. Ameriprise car insurance is available through the company or its subsidiaries in just about every state in the U.S.
Ameriprise Car Insurance
Ameriprise offers standard insurance options such as liability, personal injury protection, and collision. Specific coverage options and rates are found by using the quote feature on the company’s website.
Ameriprise also offers umbrella insurance for automobiles. This type of policy options extends liability coverage beyond standard rates for additional protection in the event of a high-cost accident. Personal assets are protected in case the policyholder is sued or responsible for multiple vehicles in an accident.
Furthermore, there is specialty insurance that is offered by Ameriprise or its partner agencies. Coverage is available for special vehicles such as antique cars, motorcycles and other recreational vehicles. They also offer insurance for all of the toys in the garage such as boats, all terrain vehicles, and other watercraft vehicles.
Ameriprise Market Share in the U.S.
Ameriprise Financial, Inc. is the largest company in the U.S. in the financial planning division, and it is listed in Fortune magazine’s Fortune 500, the list of the top 500 companies in the U.S. They hold over $630 billion in assets as of December 2011.
Ameriprise Insurance Company, another title of the Auto & Home insurance division, is one of the smaller divisions in Ameriprise Financial, Inc. The National Association of Insurance Commissioners listed the division’s assets ending 2010 as over $44 million with over $10 million in direct premiums written. Almost 50% of the premiums come from the auto liability line of business. The division is not yet large enough to have a discernible percentage of the national market share of car insurance policies.
Policyholder surpluses have fallen from over $47 million in 2008 to under $44 million in 2010. Such losses are more than likely to be expected during economic downturns and depressions. Income and investments have also show losses during the three-year trend.
Ameriprise Commercials and Advertising
Ameriprise Financial, Inc. has been utilizing name recognition in the use of actor Tommy Lee Jones in its commercials. The commercials highlight the history of the company, that it is the largest financial planning company in the U.S., and the fact that they didn’t take a bailout during the 2008 fallout in the U.S. economy.
The entire corporation is represented by the commercial, with the focus mainly on financial services such as retirement planning. The commercials use an emotional response by evoking national pride rather than humor or some sort of gimmick.
Ameriprise Ratings and Awards
The U.S. Securities and Exchange Commission designate certain organizations as Nationally Recognized Statistical Rating Organizations (NRSRO) that rate financial institutions such as insurance companies to compare financial stability across the market. The ratings have become industry markers, letting customers and executive alike know which companies have staying power in fair and stormy economies.
One NRSRO, Fitch Ratings, rated Ameriprise Financial, Inc. at an AA-, in August of 2011. This high designation shows that Fitch Ratings believes that the company is financially strong and able to meet its financial obligations in the near future. Fitch Ratings also rated the company as having a stable outlook; there are no upcoming buyouts or other financial dealings that would threaten Ameriprise Financial’s high rating.
Another NRSRO, Moody’s also gave Ameriprise Financial a high rating that denotes a low level of risk for default on the company’s financial obligations, such as insurance coverage. Moody’s rated the company at an Aa3 with a stable outlook. A third rating agency, Standard & Poor’s, added another positive rating with an AA- rating and a stable outlook.
Lastly, A.M. Best, yet another agency, rated the companies that make up Ameriprise Auto & Home Insurance at an A, or Excellent. A.M. Best agrees with its contemporaries that Ameriprise Auto and Home Insurance is as financially strong as its parent company, Ameriprise Financial, Inc.
J.D. Power rated the company as a four out of five in its 2011 National Auto Insurance Study. The company’s personal ratings were the highest for prices and the lowest for contacting the company and policy offerings. A four out of five designates that the company is, in J.D. Power’s terms, better than most.