In its ranking of the 10 worst insurance companies in America, the American Association for Justice determined that Allstate was the worst insurance company in America.
Allstate’s Shady Claims Handling Practices
Allstate is famous for shady practices that fail to protect its policyholders or cheat the policyholders themselves.
Delay, deny and defend claims. Allstate consistently and unreasonably delays paying claims to force its policyholders to give up, totally denies valid claims or offers a lower amount than what should actually be paid, and unfairly defends claims that should have simply been paid or settled.
Allstate’s program to cheat policyholders and boost its profits. This bad conduct is not by accident; instead, it is an intentional program by Allstate to increase its profits without considering the merits of a claim. Allstate hired the New York consulting firm McKinsey & Company to design this shady program.
Allstate adjusters are expected to lie to their customers. Allstate agents are trained to lie to customers and receive extra compensation when they reduce claims payment through these dishonest techniques.
The American Association of Justice is not the only group to discover Allstate's bad conduct. According to the National Association of Insurance Commissioners, more complaints are filed against Allstate than are filed against almost all of its major competitors. For example, Allstate received the largest fine in Maryland history for raising premiums and changing policy terms without notifying its customers. Here in Texas, Allstate agreed to pay more than $70 million in fines after insurance regulators discovered that the company was overcharging homeowners throughout the state. After Hurricane Katrina, Allstate improperly denied property insurance claims by residents of the Gulf Coast who lost everything.
About Allstate Insurance
The Allstate Corporation is the third-largest personal lines insurer in the United States. It is the largest publicly-held personal lines insurer. It is based in Illinois, and it reported just under $40,000,000,000 in revenue in 2018. Just because your policy does not say “Allstate” does not mean you are safe from their shady business practices. Allstate operates under many names, including the following:
- Allstate Fire and Casualty Insurance Company
- Allstate Insurance Company
- Allstate Indemnity Company
- Allstate Life Insurance Company
- Allstate Property and Casualty Insurance Company
- Encompass Insurance Company
- Allstate New Jersey Insurance Company
- Allstate New Jersey Property and Casualty Insurance Company
- Allstate Life Insurance Company of New York
- Castle Key Insurance Company
- Castle Key Indemnity Company
- Allstate County Mutual Insurance Company
- Allstate Texas Lloyd’s
- American Heritage Life Insurance Company
If you are being treated badly by Allstate in the claims process, reach out to Samples Ames to discuss your options. We do not charge for this service, and you can complete the contact form on this page or call/text us at 469-466-2600.