Allstate: Worst Insurance Company For Consumers
October 6, 2023 | Sagi Shaked | Car Accidents
Insurance companies play an important role in post-accident recovery. Since Florida is a “no-fault” state for motor vehicle accidents, all parties must first turn to their PIP auto insurance policies to make accident claims. This is true regardless of fault.
Allstate, an American insurance company, issues policies to many Florida drivers. Unfortunately, not all experiences are positive. Many policyholders struggle to deal with Allstate during the claims process. Fortunately, experienced car accident and truck accident lawyers have experience in overcoming these struggles.
Here are some reasons many consider Allstate to be one of the worst insurance companies for consumers:
Prioritizing Profit Over People
All businesses aim to turn a profit. Insurance companies are no different. However, insurers do have a responsibility to safeguard policyholders from auto accidents. Allegations against Allstate show a trend of putting Allstate’s financial interests before its policyholders.
Multiple reports indicate that Allstate frequently denies valid claims, prolongs payment procedures, and makes low settlement offers. These offers often pale compared to what victims genuinely deserve after an accident. According to the National Association of Insurance Commissioners (NAIC), Allstate gets 2.71 times as many complaints as the average insurance company.
Consumer Issues With Allstate
Companies that top the list of “bad” insurers have standard practices. These practices make it hard for victims to get fair and equitable compensation.
Bad Faith Insurance Practices
Insurance companies must deal fairly and in good faith. When an insurer violates this obligation to the policyholder, they can be said to be working in bad faith. This often occurs when an insurer refuses to honor a valid claim or conduct an investigation.
Every insurance company occasionally faces accusations of bad faith. However, Allstate appears to be a habitual offender. Several instances have shown the company denying claims that most would deem legitimate. The company’s claims adjusters have also been criticized for underestimating repair costs or medical bills, leaving policyholders in a lurch. Read more about how insurance companies avoid paying personal injury claims in Miami, FL.
For example, the United States Court of Appeals for the Ninth Circuit affirmed a $14 million judgment against Allstate in a bad faith case. The Court found evidence supporting a verdict that Allstate acted in bad faith in refusing to settle an auto claim.
Victims confront physical injuries and mounting bills after an auto accident. Swift insurance payouts can be lifesavers. Without them, the financial burdens deepen. Unfortunately, Allstate has been accused of intentionally delaying payouts. This exacerbates the financial and emotional trauma of victims.
Allstate has embraced a strategy designed to force victims into corners. Instead of offering fair compensation as quickly as possible, Allstate has been known to prolong the claims process over months or years unnecessarily.
This tires victims. Many reluctantly accept whatever settlement offer lands on the table to put the matter behind them. These are often low-value offers and only a fraction of what is truly owed.
In other situations, settlement offers may be presented in a high-stakes, take-it-or-leave-it manner, or victims may not be given adequate time to consider the offer and its terms before accepting.
Repeated Legal Challenges
Allstate’s practices have not gone unnoticed. Many personal injury lawyers have challenged Allstate’s insurance practices in court. Attorneys are all too familiar with navigating these challenges with Allstate.
A Miami Personal Injury Lawyer Can Help You Navigate an Allstate Insurance Claim
Understanding these potential challenges with Allstate is important. Believing that an insurer will behave honestly and reliability is not just a comfort but a necessity.
Car accident victims have enough post-accident changes. Being aware of potential hurdles with Allstate can help you make informed decisions. If you or someone you know has been injured in an auto accident and must file a claim with Allstate, consult a personal injury lawyer in Miami, Florida.