Allstate Ranked Worst Insurance Company in America

Allstate Insurance Company was ranked the worst insurance company in America by the American Association for Justice (AAJ). The title of worst insurance company in America is difficult to come by, so what did Allstate do – or not do – to earn that distinction?

We also have a review on the ten worst insurance companies in America if you need further reading.

Allstate’s Bad Faith Insurance Practices

According to the AAJ’s report, these are some of the bad faith insurance practices that Allstate has engaged in which put the company at the top of the AAJ’s list:

• Delay, deny and defend claims. Allstate has been accused of unnecessarily delaying its claims process in order to frustrate policyholders, denying valid claims or offering a lower amount than what should actually be paid and adamantly defending claims that should have simply been paid or settled.
• The dreaded McKinsey report. Allstate probably wishes it had never heard of McKinsey & Company, the New York consulting firm who advised Allstate how to increase its profits many years ago. Unfortunately, their methods were less than consumer friendly and consisted of everything listed above.
• Allstate agents were told to lie to policyholders. Allstate agents were told to lie to customers and were often rewarded with prizes for keeping claim payments low.

What other reviews have stated Allstate is the worst insurance company in America?

FreeAdvice.com survey: 48% of Allstate customers very unsatisfied

According to customer satisfaction ratings on FreeAdvice.com, nearly half of Allstate’s customers are not satisfied with the insurer. Here’s how survey respondents rated the insurer:

• Very Unsatisfied: 48%
• Unsatisfied: 12%
• Somewhat Satisfied: 15%
• Very Satisfied: 12%
• Extremely Satisfied: 13%

So what is making consumers say that Allstate is the worst insurance company? Customers posted the following comments about Allstate on the website:

• “Have been insured with Allstate for 25+ years, filed one minor claim for storm damage to my roof which leaked damaging my ceiling. My agent suggested I file a claim, which I did. The shingles on my home were damaged and blown off as well as some70 foot tall trees uprooted around my home which also damaged my neighbor’s fence. The Adjuster came out, assessed the damage, and informed me that my shingles were not installed properly and refused to pay for any damages. I have since replaced my roof which cost me $4000.00 out of my pocket. The only thing they offered was maybe some paint to paint the damage to my ceiling. How disgusting of such a well known company.”
• “35 year customer with no claims. Received non-renewal notice with no explanation. So much for loyalty. Buyers BEWARE OF THIS COMPANY!!!!!!!!!!!”
• “I’ve had Allstate for over 15 years with NO gaps and NO claims, ever, but they want to increase my rates up as though I’ve never been insured thru them because I was on my husbands’ auto policy for a few months…and the policy was in his name only, while I was just listed as a driver. It doesn’t matter that I’ve had homeowners, renters, and car insurance through Allstate for over 15 years prior, with my own policies… They are treating me as though I just walked into the door for the first time offering me increased rates. Not the kind of company I want insuring me as their treatment is unfair. If I want a policy in my own name, then I have to start over. No thank you, Allstate.”

Case Studies: Allstate’s Bad Faith Insurance Practices

Case Study 1: John’s Denied Claim

John, a long-time Allstate customer, filed a claim for damages to his property caused by a severe storm. Despite providing all the necessary documentation and evidence, Allstate denied his claim without a valid reason. John believes that Allstate acted in bad faith by unjustly denying his claim.

Case Study 2: Sarah’s Rescinded Policy

Sarah purchased an insurance policy from Allstate to protect her home and personal belongings. After a minor incident that resulted in a small claim, Allstate rescinded Sarah’s policy, citing undisclosed pre-existing conditions. Sarah was unaware of any such conditions and believes that Allstate acted in bad faith by canceling her policy without proper justification.

Case Study 3: Mark’s Unsatisfactory Settlement

Mark was involved in a car accident where the other driver was clearly at fault. He submitted his claim to Allstate for medical expenses, vehicle repairs, and lost wages. However, Allstate offered him a settlement that was significantly lower than the actual damages he incurred. Mark feels that Allstate engaged in unfair settlement practices, demonstrating bad faith.

The Bottom Line

If Allstate has denied your valid claim or rescinded your policy, it may have acted in bad faith. To contact an attorney whose practice focuses in this area of the law, please click here. Consultations are free, without obligation and strictly confidential.