Allstate: One of the Worst Insurance Companies For Consumers?
Allstate’s famous motto, “You’re in good hands,” isn’t living up to its promise, according to the American Association for Justice(AAJ). In the past, AAJ ranked the giant insurer as the worst insurance company for consumers. Allstate is currently ranked as the fourth largest auto insurance provider in the United States and boasts $61.8 billion in assets. But, these numbers do not demonstrate the problems many consumers have encountered with the company, especially when trying to file legitimate claims.Reasons For the Bad Rating
The American Association for Justice reviewed thousands of documents and legal filings to create its list of the ten worst insurers. This includes a careful analysis of complaints filed with state insurance departments, records filed with the United States Securities and Exchange Commission and the Federal Bureau of Investigation, materials revealed during litigation and discovery, and news accounts. According to AAJ’s investigation, Allstate stood out (in a bad way) from the rest because of the following:- Using a delay, deny, and defend strategy in which adjusters consistently and unreasonably delay paying claims in an effort to make policyholders abandon their claim; adjusters frequently deny valid claims, offer an unreasonably low settlement amount, and defend claims that should have been paid or settled.
- Instructing agents to use aggressive tactics against its policyholders to avoid paying claims in an effort to increase company profits
- Forcing consumers to accept lowball settlements or deal with their aggressive tactics
- Having adjusters lie and blame fires on arson and, in return, receive incentives
Other Auto Insurance Companies on the List
The American Association for Justice found a pattern of insurance industry greed involving:- The refusal to pay fair claims
- Employing hardball tactics against their very own policyholders
- Raising premiums
- Hoarding excessive profits
- Rewarding executives with high salaries and perks
- AIG
- State Farm
- Farmers Insurance
- Liberty Mutual
Other Problematic Reports on Allstate
The American Association for Justice isn’t the only organization to find such problems with Allstate. Various studies over the years have shown that Allstate receives more complaints than many other insurance companies. Other problems with the company’s claim handling include the following:- Charging excessive rates and receiving excessive gains compared to the amounts paid out in claims
- Systematically denying claims without investigating their merits
- Consistently paying out lower claims for bodily injury than other insurance companies
- Using difficult-to-understand processes to establish the pricing of its policies
What Consumers Can Do To Fight Back Against Unfair Insurance Tactics After a Car Accident
If you’re a consumer looking into purchasing auto insurance, consider alternatives to Allstate. If you are involved in an auto accident involving Allstate, don’t expect the company to play fair. If it cheats its own policyholders, it may cheat you, too. Protect your claim by:- Reporting the accident immediately to local authorities
- Obtaining the at-fault driver’s contact and insurance information
- Taking photos or videos of the accident
- Asking witnesses for their contact information
- Seeking medical attention promptly after the accident
- Obtaining a copy of the accident report and other evidence for your claim
- Understanding the value of your claim
