In Ohio and other states, auto insurance companies broadcast humorous and feel-good images on TV and social media, leading customers to think that insurers will care about taking care of them should they get into an accident. Public court documents and research from entities such as “Consumer Reports” and the American Association for Justice (AAJ) tell a very different story. The following companies represent the worst auto insurers for paying claims, and given their carefully crafted public personas, some of the names on the list may come as a surprise.
Allstate
The company’s CEO states that its priority is earning a good return for its shareholders. This goal goes directly against paying out claims to customers for car accidents, and the company has no loyalty to consumers. Public documents show that the company encourages its employees to fight policyholders using lowball offers and legal action to escape paying claims.
AIG
As the world’s largest insurance company, it keeps growing because it aggressively pays as little money to claimants as possible. According to the AAJ, AIG has increased prices after a catastrophe and committed other customer abuses, such as optimizing internal systems to maximize the number of denied claims.
Farmers
Customers continually give Farmers low rankings for satisfaction, and “Consumer Reports” rates the company among the nation’s worst auto insurers. Farmers incentivizes its employees to meet low claim payment goals by offering bonuses, pay raises and other benefits when clients accept lowball offers. Leaked documents from internal sources show the company trains its adjusters to place profits above claimants’ rights and best interests.
USAA
United Services Automobile Association (USAA) markets itself as a high-quality insurance option for military members and their families. Yet it broke company records by earning a $4 billion profit in 2019. USAA delays its claims processing, letting customers feel the financial pain caused by motor vehicle accidents for a while until they become desperate and accept lowball offers.
Progressive
Instead of the cheerful, friendly company portrayed in TV commercials, the real Progressive insurance company has faced numerous court cases claiming it acted in bad faith. Recently, the company was sued for not settling claims involving severely injured children and resolving one case for $22 million with another bad-faith case pending for $50 million in damages.
The more you understand about insurance company games, the better equipped you are to advocate for yourself when filing a claim.
