Rosenbaum & Rosenbaum, P.C. | January 30, 2024 | Personal Injury
Many people have had poor interactions with insurance companies when they’ve tried to settle an insurance claim. However, the American Association for Justice (AAJ) has ranked Allstate as one of the worst insurers in the country.
Allstate is one of the largest insurance providers in the United States. It has millions of customers, including drivers, homeowners, and businesses throughout New York. That means if you’re injured in an accident, you may very well have to deal with Allstate.
If so, it helps to know why Allstate is named the worst insurance company for consumers.
Reasons Why Allstate Received a Low Rating as an Insurance Company for Consumers
Reasons the AAJ gave for placing Allstate at the top of the list of worst insurance companies for consumers include:
- Allstate routinely fights claims to avoid paying insurance settlements when an injured party will not accept a low offer to settle
- There is evidence indicating that Allstate insurance adjusters are encouraged to protect the company from liability by using deceptive and unfair tactics
- Some reports suggest that Allstate insurance adjusters are offered bonuses for reducing claims
- Allstate worked with a consulting firm in the 1990s to develop a strategy specifically to persuade claimants to accept unreasonably low settlement offers
- Allstate has a high number of complaints by customers for poor service
In addition to the AAJ, the National Association of Insurance Commissioners investigated Allstate and determined that the company receives more complaints than almost all other competitors. Allstate has also been fined for using bad faith insurance practices in the past.
Why Would an Insurance Company Treat Customers and Claimants Poorly?
Without concrete evidence stating why an insurance company would choose to use bad faith insurance practices or treat claimants and customers poorly, it is impossible to know the motivation. However, we can theorize that an insurance provider would engage in this conduct to protect its profits.
Insurance companies are for-profit corporations. They are in business to make money. Therefore, paying claims contradicts their objective to make a profit.
Unfortunately, many insurance companies engage in poor conduct to avoid paying claims. Insurance adjusters are told to pressure claimants to accept low settlements and try to blame the injured parties to reduce liability. Some insurance companies may cross the line from unfair to bad faith insurance practices.
What Can You Do to Protect Your Right to Fair Compensation in an NYC Allstate Insurance Claim?
Whenever you deal with Allstate or another insurance company after an accident or injury, keep the following things in mind:
- Never admit fault for causing an accident, nor acknowledge that your actions could have contributed to the cause of your injuries.
- Avoid speaking to the insurance company on a recorded line. Always ask the person if the call is being recorded.
- Do not provide a written statement or answer questions in writing.
- Document an accident scene with photographs and videos whenever possible.
- Ask eyewitnesses for their names and contact numbers.
- Document all financial losses with copies of bills, receipts, and statements.
- Seek prompt medical treatment for your injuries after an accident and follow your doctor’s treatment plan.
Dealing directly with Allstate could hurt your case. The insurance adjuster may try to trick you into saying something that could be intentionally misconstrued to imply fault. The adjuster may tell you that your claim isn’t worth a higher amount or that you aren’t entitled to certain damages.
Remember, you’re entitled to have legal counsel for an accident claim. Additionally, you aren’t required to accept a settlement offer without speaking with an attorney.
Should I Hire a New York City Personal Injury Lawyer to Deal With Allstate?
Instead of dealing with Allstate, contact a New York City personal injury law firm. Let an NYC personal injury attorney handle all communications with Allstate. The insurance company would prefer to deal directly with you because an attorney knows about the questionable practices Allstate uses.
Insurance adjusters know they cannot use the same tactics with an experienced personal injury lawyer in New York City. Therefore, the adjuster may be more likely to offer a fair settlement amount for economic and non-economic damages if an attorney handles the case.
While Allstate may dispute and fight a claim even if you hire an attorney, you ensure that you have someone working for you who is protecting your best interests. Don’t trust Allstate’s “good hands” to do what is best for you if you file an insurance claim. The company has its profit margin as its top priority.