Ally to Chrysler Insurance: Size matters

Jim Henry is a special correspondent for Automotive News
Rating agency A.M. Best Co. last week upgraded its “financial strength” rating for Chrysler Insurance Co. to A-minus, from B-plus-plus. That normally wouldn’t be something dealers care about, but it could play a part in a simmering dispute between Chrysler Insurance and rival Ally Financial.

Chrysler Insurance complained Ally wouldn’t allow dealers with Ally floorplan loans to use Chrysler Insurance to insure their inventory. Ally said it was because Chrysler Insurance ratings were too low and because Chrysler Insurance wasn’t large enough. Chrysler Insurance complained that the net effect was that most dealers switched to Ally’s GMAC Insurance.

So does the Chrysler Insurance upgrade remove Ally’s objections?

Nope. Ally confirms Chrysler Insurance still doesn’t meet its size criteria.