Anchor General Insurance auto insurance

Overview

The Anchor Insurance Holdings Group is the parent of Anchor General Insurance, a San Diego company that sells only nonstandard private passenger auto insurance: liability and physical damage coverage for drivers that standard insurers decline or charge heavily, such as those with violations, accidents, lapses in coverage or little driving history. The group ranked #100 among U.S. private passenger auto insurers by 2025 direct premiums written, with $143.9 million and a 0.04% market share, according to NAIC market share data.

Three layers sit behind the brand. Anchor Insurance Holdings, Inc. is a privately held holding company owned by the Badani Family Trust. It owns Anchor General Insurance Company, a California-domiciled insurer, which in turn owns Pacific Star Insurance Company of Madison, Wisconsin. Policies are sold and serviced by affiliated program administrators, a role similar to a managing general agent: Anchor General Insurance Agency, Inc. runs the California and Arizona programs, and Anchor General Insurance Agency of Texas, Inc. runs the Texas program. Drivers buy through independent agents and brokers that the agency appoints; there is no direct online quote. Anchor's website offers only private passenger auto coverage, with no home, renters or life insurance.

History

Anchor General Insurance Company was incorporated in Arizona on April 28, 1981, began writing business on August 1 of that year, and moved its domicile to California on November 5, 2001. Its affiliate, Anchor General Insurance Agency, has administered its programs under contract since 1998, handling sales, binding, policy issuance, servicing and premium collection for a sliding-scale commission.

Texas came in two steps. Starting November 1, 2006, Texas policies produced by the Anchor agency were issued by Home State County Mutual Insurance Company, a Texas county mutual insurance company that fronted the business, and Anchor General assumed 100% of it through reinsurance. That arrangement has been in run-off since 2010, when Anchor began writing the Texas program itself through its Texas agency.

The business is heavily concentrated in California. In 2022 Anchor General wrote $111.3 million in direct premium, about 90% in California, 9% in Texas and less than 1% in Arizona, and it was licensed in Arizona, California, Florida, Nevada, New Mexico and Texas. It shares risk with large reinsurers: in 2022 Munich Re and Swiss Re together took 45% of its auto business under a quota share, and American Family Connect Property and Casualty Insurance Company reinsured 80% of certain California business. By 2025 the group's private passenger auto premium had grown to $143.9 million.

Auto insurance coverage

Anchor offers private passenger auto liability coverage and physical damage coverage, meaning collision and comprehensive for your own car, for drivers who want full coverage. Its marketing stresses low down payments and flexible payment: monthly electronic funds transfer, pay by phone, check or credit card, plus an online insured payment portal and a policy viewer. The website does not list optional coverages such as rental reimbursement or roadside assistance, so ask the selling agent exactly what your policy includes.

Discounts and programs

Anchor does not publish a list of discounts or advertise a telematics or usage-based program. Pricing in the nonstandard market depends heavily on your driving record, prior insurance and payment plan, so compare quotes from several nonstandard carriers; the guide to nonstandard insurers explains how these companies differ from standard ones.

Claims

Claims are reported by phone at 800-542-6246, the same number used for customer service and claim status, Monday through Friday from 8 a.m. to 5 p.m. Pacific time. You can also send a message to the claims department through the website's contact form. The group includes its own claims affiliate, Anchor Claims Services, Inc. Because the published phone hours are limited to weekdays, report an accident that happens over a weekend as early as possible on Monday or through your agent.

Ratings and reputation

On June 9, 2022, AM Best upgraded Anchor General Insurance Company and Pacific Star Insurance Company to a financial strength rating of B+ (Good) from B (Fair), with stable outlooks. AM Best credited stronger surplus, stabilized loss reserves and lower underwriting leverage after significant rate increases and agency management changes, but called the business profile limited because both companies are predominantly California nonstandard auto writers exposed to that state's market, regulatory and legal risks. The upgrade followed earlier downgrades in 2014, 2017 and 2018. B+ is below the A-range ratings held by most large auto insurers; see the guide to AM Best ratings.

The California Department of Insurance's examination of the company as of December 31, 2022, filed in December 2023, made no adjustments to surplus but recommended better compliance procedures after Anchor General failed to file amendments to its affiliate program administrator agreements with regulators on time and omitted an accountant's review report from a holding-company filing. Anchor General is not among the 16 insurers ranked for California in J.D. Power's 2026 U.S. Auto Insurance Study; another California nonstandard specialist, Aspire General, ranked last there with 530 points.

Who it suits

Anchor suits drivers in California, Arizona or Texas who need a nonstandard policy, want a low down payment and monthly payments, and are comfortable buying through a local agent or broker. It is a narrow, single-product company, so it cannot bundle home or renters coverage, and its financial strength rating sits below the A-range ratings of most mainstream insurers. Drivers who qualify for standard coverage may find more features and discounts elsewhere.

• Strengths: Insurer operating since 1981 that today focuses solely on nonstandard auto; low down payments and several payment methods, including monthly EFT; backed by quota share reinsurance from Munich Re and Swiss Re; AM Best upgrade to B+ in 2022 after years of improvement.
• Weaknesses: Sold only in three states and mostly in California; B+ (Good) rating, below A-range peers; no published discounts, telematics or online quotes; phone service only on weekdays from 8 a.m. to 5 p.m. Pacific time.

How to contact Anchor General Insurance