Allstate Insurance – Maybe Not “In Good Hands”

Reporting Disturbing Results

In a story featured this week by WSB-TV, a large Atlanta law firm reported that 30% of its suits were against Allstate, and Allstate made up 40% of those lawsuits which then proceeded to trial. What makes this so distressing is that Allstate has less than 10% of the market in the area that the firm serves. The disproportionate representation of Allstate in these lawsuits may have something to do with the company’s “deny, delay, defend” approach that they adopted under the advisement of the infamous McKinsey strategy.

Their approach to settlement offers appears to be catching up with them because, apart from this latest report, they were also singled out as the number one worst insurance company of the Ten Worst Insurance Companies in America reported by the American Association for Justice (AAJ).

Beyond the low-ball settlements that Allstate now-famously offers victims, they are also being accused of shoddy workmanship in their network of body shops. In an example highlighted by the WSB-TV report, a car’s undercarriage repair was done so cheaply that the car was deemed “inferior, incomplete, and unsafe” and the manufacturer would not pass the repair, leaving the victim carless and trapped in continuing negotiations with Allstate.

Allstate did not provide much at all as an explanation or defense of their actions. They refused to be interviewed in the context of the reporting, offering only very brief statements claiming that the data was unreliable due to the small sample size. However, the firm report was comprehensive disclosure of the first 9 months of 2019 and included 423 car crash lawsuits, and even more, injured and victimized people. Allstate also claimed to “guarantee the quality” of the repair work. This guarantee rings hollow after the evidence provided by real victims and statements from former in-house counsel for the insurance provider, characterizing a company attitude of “if you don’t like it, go to trial.”

Allstate’s Enormous Corporate Power

Allstate brought in $50 billion in revenue in 2021, and the company is concentrating their efforts on auto insurance specifically. In 2021, they divested their life insurance and annuity businesses and bought another auto insurer, National General. People are driving more now than they did at the height of the pandemic, and Allstate has made it clear to their shareholders that they will hold the line against injured people, declaring in a 2022 letter to investors that “Allstate is taking comprehensive action to improve profitability, including rate increases, reducing expenses and claims loss cost management actions.” When they say “claims loss cost management actions,” they mean finding a way to pay injured people less than they deserve.

Notice also what that letter says contributed to higher payouts in auto claims: “greater attorney representation.” Insurance companies invest a lot of time, money, and energy into figuring out how to wear claimants down and pay them less. Hiring the right attorney—one who knows how the insurance companies work, and has a reputation for standing their ground—can make all the difference.

The Value of An Auto Accident Attorney

The insurance industry is highly regulated and legally bound to act in good faith toward its customers. Still, Allstate and other providers manage to find loopholes and develop strategies to protect their profits and deny victims’ much-deserved settlement compensation. Allstate may be consistently ranked as the worst insurance provider in America, but the firm is not the only one deserving scrutiny. The 10 Worst list also includes Unum, AIG, State Farm, Conseco, WellPoint, Farmers, United Health, Torchmark, and Liberty Mutual. Additionally, State Farm landed on the AAJ’s 2018 list for Worst Corporate Conduct, describing “a banner year for fraud, unethical behavior, and empty corporate apologies.”

The best choice after suffering an injury in an automobile accident is always to hire an experienced car accident and personal injury lawyer. These recent reports show that an accident involving Allstate insurance makes legal counsel even more critical. The sophistication of enormous insurance corporations in avoiding regulatory responsibility, utilizing draconian tactics in settlement offers, and using shady practices in body shop relationships set you up for a difficult and losing battle.

Don’t fight Allstate and the other insurers alone. Call Thompson Law anytime for a free consultation about your accident and injuries. Our experienced, compassionate, and driven team is standing by to take your case, answer your questions, and put you at ease, while we enter the fight to win your settlement.

Call 844-308-8180

 

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