When things go wrong and you or a loved one has been injured in a car crash, you likely turn to your insurance company. No matter which insurance company you use, your insurer is required to act in good faith and handle all your claims fairly.
When insurers prioritize profit instead of policyholders and ignore, deny, or reduce your claim(s), they may be acting in bad faith.
While any company can be a culprit, some insurance companies are better to consumers than others.
At the Insurance Justice Center, we’ve scoured documents from the American Association for Justice, Consumer Reports, and J.D. Power to identify the worst insurance companies of 2019.
Allstate: The Worst Insurance Company in America
In the American Association for Justice investigation, Allstate stood out as the worst car insurance company for consumers. CEO Thomas Wilson defines Allstate’s mission:
“Our obligation is to earn a return for our shareholders.”
Instead of protecting consumers, the company instructs employees to use a “boxing gloves” strategy against its policyholders and boost Allstate’s profits at all costs. If policyholders accept a lowball settlement, the company will leave them alone, but if they ask for more, Allstate employs a strategy of “deny, delay, and defend.”
As a result of its bad behavior, consumers file more bad faith insurance claims against Allstate than almost all of its competitors.
State Farm is notorious for its deny and delay tactics and has gone to extreme lengths to avoid paying claims during natural disasters. The company assumes policyholders will give up if their claims are delayed and dismissed frequently enough, but they are not afraid to go to court and take advantage of their legal connections as an enormous corporation if claimants fight back.
Farmers Insurance Group regularly ranks at or near the bottom of consumer satisfaction surveys for those with homeowners or auto insurance. In one especially egregious act, the insurance company denied a 60-year-old woman’s claim after she was comatose for 9 days and confined to a wheelchair. Farmers stated that the woman’s car accident involved road rage and was, therefore, intentional. They refused to remedy the woman’s claim until the Washington State Insurance Commissioner threatened legal action.
Like many other companies on the list, Liberty Mutual relies on lowering payouts regardless of whether or not policyholders have valid claims. The company is not active in every state due to a history of breaking state law and is facing litigation from its policyholders and vendors alike. In the public eye, the company’s reputation has been marred by excessive cost-cutting and even fraud.
MAPFRE Insurance is the lowest-rated company for consumer satisfaction in 2019. While the company offers big discounts, the claims process is slow, and employees are unresponsive. Many consumers report having their claims denied and their calls dodged, while those who do have their claims paid describe the whole situation as a “headache” in which they have to do the majority of the work.
One customer stated: “Dealing with MAPFRE has been the worst experience I’ve ever had.”
Don’t Let Insurers Take Advantage of You
Every insurer on this list uses or has used bad faith tactics to avoid paying consumers the benefits they are rightfully entitled to.
When you purchase an insurance policy and pay your premiums, your insurance company has a duty to treat you fairly and provide the service they promised you.
If your claims are being delayed, denied, or reduced, don’t wait for your insurer to do the right thing. Instead, call the Insurance Justice Center for a free consultation.