A recent study released by the American Association for Justice (AAJ) ranked the ten worst insurance companies in America. According to this study, Allstate Insurance ranked as the worst insurance company in America for consumers. The purpose of the study was to inform consumers of the worst insurance companies with regard to claims-handling practices, and to draw attention to the exorbitant profits the insurance industry has been raking in even while they raise premiums and lobby Congress for more protection and handouts.
“The rankings show a distinct pattern of insurance industry greed amongst 10 companies that refuse to pay just claims, employ hardball tactics against policyholders, reward executives with extravagant salaries, and raise premiums while hoarding excessive profits.”
The information from the study was gathered from numerous sources, including SEC and FBI files, thousands of court documents and materials gathered through litigation, state insurance department filings, witness testimony, and various news accounts covered by journalists.
This is important information because all of us see the mountain of marketing material put out by the insurance industry in an effort to convince us that “We’re in Good Hands,” or that the insurance company is, “Like a Good Neighbor.” Truth is, good neighbors don’t deny good claims, and “Good Hands” don’t force people to go to trial in order to get a fair outcome on a legitimate claim.
Consumers need to know the truth about their insurance company so that they can make an informed decision when buying insurance. All of us assume that, should we suffer some sort of loss for which there is insurance, we will be covered for the loss and treated in a fair manner. Unfortunately, that is too often not the case. Instead, the insurance company frequently puts up unnecessary roadblocks and uses the legal system as a weapon to deny or delay claims.
Many times, I have met with new clients who tried to resolve an automobile accident case on their own with the other person’s insurance, and who initially had no intention of hiring an attorney because they didn’t think they would need one. Often, the insurance company has strung the person on for so long that they find themselves a week or so away from the statute of limitation on their personal injury/automobile accident claim with no resolution in sight. The prospective client is often somewhat amazed that they are having to speak with an attorney, at which point I say, “If insurance companies treated people fairly, I wouldn’t have a job.”
Bottom line, take a look at the list of “Ten Worst Insurance Companies” compiled by the American Association for Justice. If your insurance company is on that list, my advise is to find another one.