Is Allstate the Worst Insurance Company for Consumers?

Stephen Schultz | July 12, 2023 | Personal Injury

“You’re in good hands with Allstate,” or so they tell us. But is it true? Allstate provides a variety of insurance coverage after any type of car accident, such as auto insurance, homeowner’s insurance, and life insurance. It is the fourth-largest auto insurer, with a market share of close to 10%. Unfortunately, Allstate has generated quite a number of complaints over the years, and there are reasons for these complaints.

National Law Review Ranking: The Worst

In 2021, the National Law Review, a highly respected professional journal, ranked the “11 Worst Insurance Companies.” Allstate came in at No. 1. The reasons for this dismal ranking included “lowball offers and hardball litigation.”

A lowball offer occurs when an insurance company offers you much, much less than your claim is worth, in the hope that you will take the offer just to get the money quickly.

“Hardball litigation” means the company will use its suite of expensive lawyers to fight hard in court, hoping that they can exhaust you and you will either give up your claim or accept their lowball offer. They also play hardball by forcing you to take claims to court that the company knows are valid.

American Association for Justice: The Worst

The American Association for Justice concurs with the National Law Review by ranking Allstateas the No. 1 worst insurance company in the United States. This study is particularly authoritative because it was based on court documents, SEC records, FBI records, various state insurance department investigations and complaints (including Missouri), national news reports, and reports from former insurance agents.

Consumer Complaints

The National Association of Insurance Commissioners (NAIC) publishes a “complaint index” that compares the number of complaints against various major insurance companies. Allstate’s NAIC complaint index for auto insurance is 2.70, meaning that it is subject to nearly three times the number of complaints as the average insurance company. The nature of these complaints spans the entire field of insurance practice that Allstate engages in.

Cost: CNET Survey

According to a CNET survey, Allstate offers some of the highest premiums of any insurer. Its average cost for auto insurance is more than double that of some of its competitors and hundreds of dollars a year more than the national average.

When you compare the high cost with the rate of complaints plus Allstate’s reputation for playing “lowball” and “hardball,” they don’t come out looking very good.

Don’t Think You Have Enough Money To Oppose Allstate? With a Lawyer, You Can

Perhaps you don’t have much money. That shouldn’t prevent you from retaining the services of a good lawyer as long as you have a strong case. Personal injury lawyers typically work on a contingency fee basis, which means they charge you legal fees that amount to around 30% to 40% of your eventual recovery. That means $0 upfront and nothing ever unless you win, either in court or at the settlement table.

If Allstate won’t settle through negotiations, you can also take them to court without a dime in your pocket as well. Once you have filed a lawsuit, you can use the court-supervised pretrial discovery process to demand testimony from their witnesses, send the written interrogatories that they must answer under oath, and gain access to evidence they plan to use against you.

If the results of the discovery process are positive, you can then return to the settlement table with a much stronger hand to negotiate with. Even if Allstate is stubborn and refuses to negotiate, the evidence you gather during the discovery process can increase your odds of winning at trial.

How a Lawyer Can Help You Fight Back Against Insurance Bullies

Major insurers like to take advantage of personal injury claimants who attempt to represent themselves. If you try to deal with Allstate on your own, you will be dealing with a professional negotiator. Don’t worry – a good personal injury lawyer is also a professional negotiator. They will know just how to deal with any insurance company, including Allstate.