When you purchase auto insurance, you enter into a contractual agreement with your insurance company. This agreement stipulates that the insurer will pay out on any claims, in exchange for a monthly premium. Despite most companies collecting 1 billion dollars a year in profits, many auto insurance companies underpay clients on their claims.
Most auto insurance companies will use various tactics to delay and deny your insurance claim. Meaning, they will do all they can to delay your settlement or deny your claim. Generally, these actions create tensions between insurance agents and their clients. Therefore, every state has an insurance department meant to regulate this relationship.
Although the goal of most businesses is to maximize their bottom line, some insurance companies do so by tarnishing their reputation and damaging their client satisfaction rates. The insurance companies with the worst client satisfaction rates are reported each year, on the Consumer Reports Worst Insurance list. Below are some insurance companies that ranked on the 2020 report.
Allstate, ranking as the fourth-worst insurance company in 2020 and the seventh-worst insurance company in 2019, has made it publicly known that their end-goal is to “earn a return for [their] shareholders”. This statement shows little to no regard for client satisfaction rates.
When filing a claim through Allstate insurance, their adjusters will offer a small settlement amount significantly less than the damages their clients are claiming. Upon the policyholder’s refusal of the initial offer, Allstate generally proceeds to litigation to settle the dispute. Normally, an insurance company will attempt to negotiate with the claimant before entering into litigation.
Furthermore, Allstate intentionally makes it unprofitable for attorneys to help their clients. Allstate accomplishes this by delaying small claims to the extent that the client will lose out on more money in pursuit of compensation than they would have lost if they accepted the initial offer. Additionally, if the claimant does not have an attorney, insurance companies can utilize any tactic they see fit to influence the claimant to stop seeking compensation.
State Farm is the largest property-casualty insurance company in the United States. In the past, State Farm insurance has been found forging signatures on damage waivers and falsifying engineering reports regarding damages (reported by CNN 2007).
However, State Farm has seen an increase in client satisfaction, as they did not place on the Worst Car Insurance List of 2020. Comparatively, the year prior they ranked as the 10th-worst insurance company. Clearly, State Farm has made significant improvements regarding its client satisfaction. Hopefully, this trend continues.
Farmers Insurance, most consistently ranked as the worst auto insurance, ranked as the seventh-worst insurance company in 2020. Comparatively, they ranked as the eighth-worst insurance provider in 2019. Farmers insurance is known to reward employees who successfully reduce insurance settlements.
Liberty Mutual ranked significantly worse on the Consumer Reports Worst Auto Insurance List of 2020 compared to their ranking in 2019; moving from fifth-worst in 2019, to third-worst in 2020. Furthermore, Liberty Mutual has been accused of denying policy renewals for clients they consider at-risk of filing an insurance claim; ultimately defeating the purpose of insurance coverage.
Were you or someone you know involved in a recent auto accident? Call Auto Accident Care Network now at 801-683-1948 to connect with a live care advocate. Our team at AACN can connect you to trusted attorneys and doctors to schedule a free legal consultation, a free thirty-minute massage, and a no-cost medical exam!