Jill Kolodner | November 23, 2021 | Personal Injury
Allstate is a well-known insurance company that was founded in Illinois in 1931. They provide auto and home insurance and currently claim to be the largest personal insurer in the country.
Allstate is rated well by many websites, particularly because they are an inexpensive source of car insurance. However, according to WalletHub, you may find your Allstate insurance premiums increasing by at least 66% after an accident.
There are reportedly bigger problems with this company, too. Specifically, Allstate is rated as the worst insurance company to work with because their teams are known to use deceptive and bullying tactics with their policyholders.
Where Did the Problem Start?
A report released by the American Association for Justice goes into detail about how Allstate has focused on profits over its obligations to customers since the mid-1980s.
At that time, the company hired a consultant to help them determine where they could cut expenses and make more money. That firm recommended that they pay less out in insurance claims, even if those claims were valid.
These recommendations soon created a company culture of lying and cheating, all for the purpose of making company owners more money.
Here are a few of the problematic tactics that Allstate tries to use with its customers:
A History of Lying to Policyholders
At one point, insurance adjusters were offered prizes if they could reduce or eliminate policy claims from customers. The adjusters were told to do this at all costs, even if it meant lying to customers.
In one example, when wildfires devastated local homes, the homeowners were told that the cause of the fires was arson. This made it so that the company was not obligated to pay out claims, as their home insurance policies did not cover arson.
Adjusters Taught to Delay and Deny Claims
Another common tactic Allstate insurance adjusters use is to simply delay responding to claims as long as possible. The reason is that the adjusters hope that policyholders will get frustrated and give up on their claims. When this happens, the company won’t have to pay anything.
If delaying their response doesn’t work, claims adjusters actively try to deny claims. By denying claims, the company may be able to avoid paying for damages even if they are liable for them.
Unfortunately, all of this bad customer service also comes at a premium. For example, the company was faced with a huge fine in Maryland after bumping up the costs of coverage and changing the terms of their policies without properly notifying all of the affected customers.
Similar problems arose in Texas, where the company was again subject to over $70 million in fines.
What Can You Do If You Have to File a Claim Through Allstate?
When someone is the victim of a car accident, they deserve to be taken care of properly. They should not have to pay for medical care and expenses out of their own pocket.
Car insurance policies are supposed to cover standard issues that often arise from car accidents, including:
- Emergency medical care
- Surgeries or urgent treatment
- Ambulance transportation
- Time off work
- Physical therapy
- And more
If you or a loved one has suffered from an accident and you’re getting the runaround from an Allstate insurance adjuster, you deserve better.
A personal injury attorney can help you to effectively overcome the bad faith tactics of major insurance companies. They can circumvent strategies to delay or deny your claim, negotiate on your behalf, and help you to fight for everything you deserve.