Hawk Law Group | September 22, 2022 | Personal Injury

Allstate is one of the largest personal lines insurers in the United States and the fourth-largest auto insurance company. It insures individuals against death, injury, and property loss, including personal liability for certain losses. Its annual revenue is about 40 billion dollars, and it has written more than 113 million currently valid policies. 

According to the American Association for Justice, Allstate is also one of the worst consumer insurance companies in the US. There are many reasons for its low ranking.

Consumer Complaints

According to the National Association of Insurance Commissioners (NAIC), Allstate gets 2.71 times as many complaints as the average insurance company, based on their share of complaints vs. their share of the insurance market. 

Allstate’s Questionable Business Practices

It all started in the mid-1980s when Allstate hired the business consultancy McKinsey & Company to help it increase profits. McKinsey advised Allstate to reduce the amount it was paying consumers in claims, regardless of their merit. Since then, Allstate has engaged in various tactics to increase its profits at its policyholders’ expense.

  • Lowball settlement offers: It isn’t surprising when an insurance company is willing to take advantage of the inevitable delays in claim processing to issue you a ridiculously low settlement offer. Never accept the first offer from Allstate. Always consult your lawyer before you accept any offer from them. 
  • Allstate executives instructed their insurance adjusters to lie to claimants. One example is falsely claiming that the loss of a home due to a wildfire was actually arson. Allstate issued rewards to adjusters who reduced claim amounts by lying to their customers.
  • Forcing claimants to take valid claims to court. Allstate often refuses to negotiate a valid claim, forcing the consumer to take it to court. Many claimants just give up at this point. 

The preceding is only an abbreviated list of unfair tactics pursued by Allstate against their customers.

Other Names for Allstate Companies

If you wish to avoid doing business with Allstate, avoid companies with “Allstate” in their names, such as Allstate Indemnity Company, Allstate Life Insurance Company, and Allstate Property and Casualty Insurance Company. You also need to avoid other Allstate-owned companies that avoid using the word “Allstate” in their names, such as:

  • Esurance;
  • Encompass Insurance Company;
  • Castle Key Insurance Company;
  • Castle Key Indemnity Company; an
  • American Heritage Life Insurance Company.

If you do business with any of these companies, expect the same treatment you would expect from Allstate.

Bad Faith Insurance Claims

A bad faith insurance claim is a claim that the insurance company has treated you unfairly. It is separate from the original claim filed with the insurance company. Suppose, for example, that you filed a car accident claim with Allstate seeking $10,000 in compensation. If Allstate deals with you in bad faith, you have two claims—a personal injury claim for your car accident and a bad faith claim arising from the insurance company’s treatment of you.  

Bad faith insurance claims are notoriously difficult to win without the assistance of a skilled personal injury lawyer. However, with a good lawyer, many of these claims are winnable. Even if you don’t win them, you might find that once you assert a bad faith claim, the insurance company suddenly takes a more flexible attitude toward negotiating your original claim. 

The Contingency Fee System: Why Your Lawyer is on Your Side

Under the contingency fee system that most personal injury lawyers use, your legal fees will equal a pre-agreed percentage of your total compensation (typically between 33 and 40 percent). 

The contingency fee system means that the more money you make, the more money your lawyer makes. Accordingly, your incentives are aligned with your lawyer’s. Your lawyer only wins if you win, and they only win big if you win big. Contrast this with the position of an insurance company. The more they pay you for a claim, the less they get to keep. Because of this, your interests and the insurance company’s interests are adverse to each other.

Contact a Personal Injury Lawyer

Companies like Allstate are a major reason why you need a personal injury lawyer for any sizable insurance claim. If you are having problems with the insurance company, you might not know how to fight back. That’s okay, however, because an experienced personal injury lawyer knows how to handle companies like Allstate who try to bully their customers.

For more information, please contact the personal injury lawyers at Hawk Law Group at our nearest location to schedule a free consultation today.
We serve throughout the Central Savannah River Area and it’s surrounding areas:

Hawk Law Group – Augusta, GA
338 Telfair St, Augusta, GA 30901, United States
(706) 722 3500

Hawk Law Group – Evans, GA
4384 River Watch Pkwy, Evans, GA 30809, United States
(706) 863 6500

Hawk Law Group – Thomson, GA
146 Railroad St A, Thomson, GA 30824, United States
(706) 361 0350

Hawk Law Group – Waynesboro, GA
827 Liberty St, Waynesboro, GA 30830, United States
(706) 437 9122

Hawk Law Group – Aiken County, SC
156 Laurens St NW, Aiken, SC 29801, United States
(803) 226 9089

We also serve in Edgefield County, SC.