Allstate Worst Insurance Company For Consumers
David Muñoz | March 15, 2022 | Car Accidents
Allstate is California’s fourth-largest auto insurer, claiming about 8.99% of California’s auto insurance market. You may not deal with Allstate after a car accident.
But if you do have to deal with Allstate, you may have difficulties. This is not simply an opinion. Surveys, complaints, and investigations have proven it.
Allstate uses questionable business practices to increase its profits at the expense of its customers and third-party claimants.
Here are three ways that Allstate is the worst insurance company for consumers.
Claim Process After a Car Accident
California uses a fault-based auto insurance system. After a car accident, you will need to file a claim with the at-fault driver’s insurer to receive compensation. This system ensures that negligent drivers bear the burden of their carelessness through higher premiums.
Your claim will be assigned to a claims adjuster. The adjuster investigates the claim and decides whether it falls within the customer’s auto policy. If the company accepts the claim, the adjuster offers to settle it.
You and your injury lawyer negotiate for the best possible settlement. At the same time, the insurer fights to pay as little as possible. The less it pays, the greater its profit.
Eventually, you will settle the claim or determine that you need to file a lawsuit to get fair compensation.
3 Ways Allstate Is One of the Worst Insurers
Allstate takes advantage of both its customers and claimants to unfairly line its pockets rather than fulfilling its contractual obligations. Some of the ways Allstate underperforms compared to other companies include:
1. Consumer Complaints
The California Department of Insurance prepares a report every year that rates each auto insurer’s justified complaint ratio. This ratio divides the total number of justified complaints against an insurer by the number of policies written by the insurer. Thus, a company with zero proven complaints would have a score of zero.
Allstate has a complaint ratio of 2.2. This places Allstate 25th out of 50 auto insurers doing business in California. It has the worst score of the five major insurers. State Farm, Geico, Progressive, and Farmers all have better scores.
These complaints do not just come from California residents. NAIC collects complaints from all across the U.S. According to NAIC, Allstate gets 2.71 times more complaints than the average insurance company.
2. Consumer Surveys
You may have heard of J.D. Power & Associates. This data analytics company polls consumers and hands out awards to companies for high customer satisfaction.
According to J.D. Power, Allstate places 11th out of 14 insurance companies for consumer satisfaction. Again, it falls below the industry average and sits well behind its major competitors like Geico, State Farm, Farmers, and Progressive.
3. State Investigations
Several states have investigated Allstate and issued fines and other penalties for questionable business tactics. In 2003, California investigated over 600 complaints about Allstate regarding property damage claims resulting from wildfires.
Maryland imposed the largest fine in the commonwealth’s history on Allstate for raising premiums and changing policies without telling customers. Texas fined Allstate $70 million for overcharging its customers.
Worse yet, these investigations uncovered evidence that supervisors told adjusters to:
- Lie to claimants about their claims
- Deny claims that should have been paid
- Defend lawsuits in cases that should have been settled
According to whistleblowers, Allstate’s goal was to make claims against Allstate so toxic that no injury lawyer would take a case against the company.
Dealing with Allstate
If you do need to deal with Allstate, you should minimize your contact with the company. Claim adjusters could twist anything you say and use it against you. And consider hiring a lawyer to handle your claim. Insurers like Allstate tend to avoid playing games when you have a lawyer on your side.
Contact Our Car Accident Law Firm in San Diego Today To Get More Information
If you’ve been injured in a car accident in San Diego or Chula Vista, please call Mission Personal Injury Lawyers for a free case evaluation with a personal injury lawyer or contact us online.
We proudly serve San Diego County and throughout California.
Mission Personal Injury Lawyers
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We also serve the state of Texas. Contact our personal injury law office in El Paso for legal assistance today.
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