Worst 11 Auto Insurance Companies:
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- State Farm Mutual automobile insurance company
It’s ranked as the number 1 provider of auto insurance in the US with a revenue of $1.1 billion in 2011 which is an approximate 100% increase in revenue from $ 570 million in 2009. The bad news is how they are making profit by avoiding paying insurance claims at all cost.
The firm is notoriously known for delaying and denying claims. There were claims of State Farm tampering and altering engineering damage reports and forging of signatures on waivers. CNN made a report on these allegations in 2007after victims came out with evidence of unfair practices by State Farm.
In some cases like Michigan, State Farm was investigating and accusing their customers of insurance fraud so as to avoid paying in fight payments of no fault benefits and legitimate claims.
- Allstate Insurance company
Allstate Corporation is the largest publicly held corporation of its kind and it’s also the second largest known lines insurer in the US. Allstate is known for valuing profits over the policy holders since the mid-90s and this was brought to light in 2008 by American Association for justice AAJ.
Allstate has been using two strategies one through colossus, a computer program used to evaluate all its claims. This computer program was purely designed to reduce payouts to auto accident claims by discouraging accident victims with legitimate injuries from seeking legal assistance.
The second strategy was carried by McKingsey & Company, a consulting company hired to encourage their insurance consumers to forcefully accept extremely low settlement offers (lowballs). If a consumer were to decline the offer Allstate via McKinsey & Co would deny the consumer the insurance claim by all means possible. Allstate was also named among other companies by the CNN report exposing their bid to deny auto insurance claims.
- Liberty Mutual
This is the second largest casualty and property insurer in the US as well as a global insurer. Together with Allstate and State Farm, liberty mutual also hired McKinsey & Company. There strategy was issuing non-renewal of policies notices to its consumers living in areas that were more susceptible to the occurrence of hurricane.
This affected its consumers in States like Rhode Island, New York, Maryland, Connecticut and Massachusetts. Approximately 3 million of their consumers were affected by non-renewal of their policies.
This is an insurance company that is supposed to cater for the interests of the disabled. However, investigations have shown that the company has worked against the same people that it is expected to protect. For instance, UNUM mistreated a woman for three years.
This client had a genuine case of multiple sclerosis. However, in as much as the doctor had confirmed the condition as medically true, the insurance company insisted that the woman had come up with those claims fraudulently. In as much as this company claims to put the employees back on track, the reality of things seems to be the exact opposite.
- Secura Insurance
The case which involved this company and an 83 year old client this year makes it one of the worst insurance company. The claimant, a 83-year old man died after being hit by a truck while crossing a road on his bicycle.
The client was crossing the road at the right place. It was so sad of the insurance company to argue that the elderly man didn’t deserve more than $250,000. This is all they could offer to the deceased 10 children and 38 grandchildren. They could not put into consideration the fact that the driver of the truck had a poor truck record on the road.
- Dairyland Insurance
It was just the other day that Dairyland Insurance Company sent a note to its clients who had been involved in accidents, exonerating itself of all legal liabilities. This was unprofessional. This had never been witnessed before in the history of insurance.
Michigan need to work on improving its insurance laws. The State lacks bad faith laws and consumer protection laws. It is for this reason that Dairyland insurance found it easy to shortchange its customers.
- Farm Bureau Insurance
In as much as this company masquerades to be like any other insurer, it has been known to do all it takes to avoid compensating its clients who have been involved in accidents.
When challenged before a court of law, they have a cunning way of defending their cases. It is very unethically for a lawyer to misdirect the court when he or she knows so.
- Progressive Insurance
This insurance company is not as progressive as it claims to be. In the case of Carducci vs. Progressive et.al, the client had been involved in an accident that saw her undergo thirteen surgeries and get hospitalized for a month. Moreover, she suffered serious brain damage.
The driver who had hit her actually did not have insurance. The claimant had however purchased Uninsured Motorist Coverage, which was supposed to cover persons injured in car accidents caused by uninsured drivers. When approached to pay for it, the company claimed that it had changed the policy. In the past few years, majority of the clients have complained of getting a raw deal from the company.
- Citizens Insurance Company and Auto Club Insurance Association
In the past few years Auto Club Insurance Association and Citizens Insurance Company of America have received many complaints from their insurance holders. The AAA insurance company had a good reputation of taking good care of the interests of its clients, without playing any kind of tricks on them.
However, the complaints against this company have recently reached a soaring level.
The main consumers of CONSECO are the elderly. Allegations of malpractice came out suggesting that CONSECO had been facilitating the delay of judgment on claims to a point where the consumer would give up or eventually die.
The CEO William McGuire colluded with doctors to reduce payments and cut-back treatments. The company still owes late payment on claims for its consumers.
The worst insurance company is compiled from consumers experience with the insurance companies. This information is to help other consumers to steer clear from auto insurance companies that might end up frustrating them. Auto insurance rate vary from state to state.
It costs an average of $1,311 to insure a car in America. Michigan is ranked with the highest rates of auto insurance of $2,476 while Maine offers the lowest auto insurance rates of $805.
The following are the top 5 best rated auto insurance companies are:
- Amica- Is the overall best auto insurance company.
- State Farm- despite being ranked one of the worst insurance companies’ State Farm offers the best customer service to its consumers
- The Hartford – is the best auto insurance provider as its offers almost unlimited number of policy options.
- USAA- is a great option for members of the US armed forces
- Erie Insurance- offers policies for auto insurers covering loss of earning, road service and lawyer fees.
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