Allstate Worst Insurance Company For Consumers
January 20, 2022 | Car Accidents
Insurance plays an important role in a person’s life, especially after a car accident. At least, it should.
Pennsylvania is technically a no-fault state in regard to car accidents. If you sustained losses due to an unexpected accident, your insurer should compensate you for those losses regardless of who caused the accident.
However, insurance is still a profit-driven industry like any other. Insurance companies are not incentivized to pay the full value of claims. On the contrary, insurers have demonstrated a tendency to undervalue and deny claims, even for legitimate claims.
Some insurance companies have worse reputations than others. Specifically, Allstate consistently ranks among the worst insurance companies for consumers. Some even rank it as the absolute worst.
Allstate’s advertisements suggest its customers are “in good hands.” Historically, the insurer has failed to live up to this promise.
Why Allstate May be the Worst Insurance Company
The American Association for Justice is one prominent organization that has reviewed Allstate’s past. The AAJ has determined the company fails to serve its customers properly. One reason the AAJ has reached this conclusion stems from a collaboration between Allstate and business consulting group McKinsey & Co. in the 1990s.
Allstate enlisted the help of the consulting firm to identify ways the company could maximize its financial growth while minimizing its losses. McKinsey & Co.’s message to Allstate was clear: the insurer could support its own financial well-being by limiting how much money it pays to claimants. According to reports, it was suggested that Allstate should apply this strategy regardless of whether a claim is valid.
The AAJ has identified several tactics Allstate employs to avoid paying claimants the full amount of compensation for which they may be eligible. They include the following:
Lying to Policyholders
The AAJ’s investigation into Allstate’s practices revealed a shocking discovery: Allstate’s adjusters have previously been instructed to lie to claimants to pressure them into lowball settlement offers. Some adjusters have even received gifts or bonuses for lying to customers.
This is among the most common ways insurance companies try to limit their liability. Allstate has been known to offer less than the full value of claimants’ damages, even when they have documentation proving their losses are covered.
Allstate Has a History of Complaints
The AAJ’s findings are not the only evidence suggesting Allstate does not serve its customers properly. No other major insurance company in the nation has been the subject of more complaints than Allstate.
Consider Allstate’s response to claimants in the aftermath of Hurricane Katrina. Allstate was so uncooperative that it received twice as many complaints as any other insurer after the storm. This is even more surprising to hear when you consider that Allstate had fewer policies than any of the other insurance companies with whom victims filed claims in Katrina’s aftermath.
Some have attempted to hold Allstate accountable for its bad faith practices. Unfortunately, Allstate has often refused to cooperate with them. The company has ignored legal orders requesting documents that would shed light on its internal policies. When these documents have been successfully acquired, they’ve indicated that Allstate tends to pay its claimants far less than other insurance companies typically do.
Just remember that Allstate is not entirely unique when it comes to denying claims or lowballing claimants. The company is simply one of the most notorious offenders.
This highlights the importance of seeking professional assistance when filing any type of claim, whether it be related to product liability accidents, truck accidents, medical malpractice, etc. You can’t expect an insurer to be on your side when you file a claim or lawsuit. Thus, you need representation from an attorney. A lawyer who understands the way insurance companies defend themselves financially can help boost your odds of recovering the compensation for which you may be eligible.
Contact the Car Accident Lawyers In Pennsylvania at Marzzacco Niven & Associates For Legal Help With Your Case Today
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