3 Worst Insurance Companies for Paying Out Claims
The purpose of holding an insurance policy is so that, should a situation arise where you need financial help for medical, property, or other damages, you can get it. Beyond damages you suffer yourself, insurance also helps cover damages to others, such as injuries in an automobile accident. While insurance premiums may be high, there’s no denying that having coverage helps give many people peace of mind.
However, that peace of mind only applies if the insurance company pays when the time comes. While these companies should focus on taking care of their customers, many are unfortunately more focused on profit than goodwill. To make matters worse, some of these companies are the biggest names in insurance.
The American Association for Justice conducted a thorough investigation of several insurance companies, analyzing court documents, state insurance investigations and complaints, news accounts, and FBI records. The result was a comprehensive report of the worst insurance companies in America. Here are the top three worst companies for paying out claims, according to the report.
State Farm is one of the most well-known property insurance companies in America. It is also one of the most notorious for avoiding paying out claims. Across earthquakes, hurricanes, and other natural disasters, State Farm has worked to deny any policy claims by declaring that its policy does not cover damages and refusing to fulfill its duty as an insurer.
When State Farm cannot deny a claim, it will instead work to delay any repayment for as long as possible and aggressively go to court should a lawsuit arise. It has also produced forged signatures on waivers and altered engineering reports to skew the extent of damages.
Unum provides disability insurance across the country and is responsible for many denied and delayed claims. In some cases, Unum would deny claims solely because of trying to meet cost-savings goals, without any concern to customers who needed financial support.
In one situation, Unum denied the claim of a woman with multiple sclerosis for three years. The company used the reasoning that her condition was “self-reported,” even though she had several reports from doctors confirming her condition. Beyond claim denial and delay, Unum has also committed several other acts of insurance provider fraud through violating state and federal regulations.
Instead of focusing on the needs of its policyholders, Allstate instead has chosen to focus on the needs of its stockholders. The result has been that Allstate is more concerned with its profit margin than its duties as an insurer. Much like State Farm and Unum, Allstate adjusters received instructions to deny claims when possible and keep payouts low otherwise, regardless of the circumstances.
Allstate has also dropped many policyholders during disasters, often with falsified reasons. Instead of providing coverage to those who need it, Allstate is working to retain the customer base it has so that it can maintain a steady income of profits. While asserting that its changes in business strategy are about efficiency for the company, the result is incomplete insurance for those who do hold Allstate policies.
These companies are the top three at avoiding payouts. Other insurance companies covered in the study include:
- Liberty Mutual
If you have insurance policies with any of these carriers, you may be at risk for bad faith insurance coverage. While the American Association for Justice encourages stronger insurance company accountability, it may be some time until efforts bring forth results.
However, you do not need to stand aside if you have been the victim of a bad faith policy from these or other insurance companies. Contact a Phoenix personal injury attorney in your area for a free consultation today.
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