Eleven Terrible Insurance Companies

The insurance industry in the United States generates a staggering $1,000,000,000,000 a year in premiums, according to the American Association for Justice (AJJ). yes, that’s a billion dollars.

The Aaj compiled a list of the worst insurance companies in the United States by examining thousands of records about the companies, including court documents, FBI records, and testimonials from former insurance employees. Their research identified the companies that are working against customers who need them most by denying claims, denying coverage, and raising premiums.

Reading: Which insurance company denies the most claims

While this list comes from the opinions of Aaj researchers, experience handling countless insurance claims for injured clients leads our legal team to agree with the list. We’ve also had dealings with other non-AAJ insurers that use questionable tactics to minimize and avoid payment of valid claims.

If you were in a car accident and are fighting with one of these insurance companies, you should know that they are not on your side. they use proven tactics so that you settle for a small fraction of what you really need to financially recover from your injuries.

The following list contains the 11 worst insurance companies in America:

1. the entire state.

The Aaj List explains that even the CEO of this company admits that Allstate’s loyalty does not lie with its customers. CEO Thomas Wilson says Allstate’s “obligation is to make a return for our shareholders.” the documents they had to make public show that, although they have “good hands” in the ads, they encourage their employees to fight against their own policyholders.

the aaj says this about allstate, “the company essentially uses a combination of low bidding and tough litigation.” To illustrate how much money this company makes from its tactics, Wilson received more than $16,300,000 in compensation in 2019, while many injured claimants received much less than they deserved or nothing at all.

allstate has also faced criticism for using very confusing policy language that leads policyholders to believe they have some coverage when, in fact, they receive a denial of their claims. Critics suggest the company wants to collect premiums from policyholders who assume they have comprehensive coverage, only to have no recourse when disaster strikes.

all this has earned allstate the title of the worst insurance company.

2. unum.

This is one of the nation’s leading disability insurers and has earned a bad reputation among its policyholders. unum is notorious for delaying and denying claims brought to them. CEO Rick McKenney earned more than $9.7 million in a recent year, while disabled claimants received benefit denials. This company is frequently investigated by the media for its continued abuse of claims, earning them the number two spot.

California and other states have also launched investigations and filed claims against Unum regarding its claim denials, with the California Insurance Commissioner describing Unum as an “outlaw” corporation. The United States 9th Circuit Court of Appeals ruled that a denial defied medical science because the insurer denied benefits and expected a man to continue working despite strict medical orders not to. this is one of many examples of how unum notoriously leaves claimants without the help they deserve.

even one of unum’s own employees was unable to get the benefits he needed after a diagnosis of multiple sclerosis. the company denied his claims for three years despite medical evidence of his condition. It was only when she sought legal representation that the company relented in this case, demonstrating the critical nature of having the right attorney fighting for her benefits.

3. aig.

aig is the world’s largest insurance company, and brian duperreault, chief executive officer, earned more than $19 million in 2019. the company’s profits continue to rise, largely due to paying as few claims as possible . Somehow, AIG continually mistreats its customers without many resources. executives of this company allegedly try to raise prices after a catastrophe. the aaj reported that “the company has been labeled the new ‘enron’ due to charges of multi-million dollar corporate fraud.”

despite numerous issues raised in civil and criminal courts, aig continues to employ its tactics to win as much as possible at the expense of its plaintiffs. it allegedly designed its internal systems to maximize claim denials, creating unnecessary obstacles for claimants to obtain benefits on valid claims. this is true for both commercial policyholders and consumers.

aig also has a reputation for not playing fair in court, and the company has been sanctioned due to improper tactics by its attorneys in discovery and other proceedings. When dealing with AIG, be prepared to fight to get the payment you deserve by having the right legal team on your side.

4. state farm.

state farm is the highest-earning insurance company in the united states, and it did not earn this distinction by voluntarily paying the full amount of each claim. the company has earned the trust of many policyholders with its famous slogan, “like a good neighbor, the state farm is there”, although many people later come to feel that this slogan is not true.

This company has allegedly committed some truly deplorable acts to avoid paying their customers. After Hurricane Katrina, State Farm reportedly altered engineering reports on storm damage, as well as forged signatures on earthquake waivers after significant earthquakes. state farm is the nation’s largest property and casualty insurance company. Like most insurance companies, State Farm can go to great lengths to delay and deny claims, all while paying CEO Michael Tipsord $8.5 million or more per year.

One policyholder was a United States Senator who set out to improve insurance regulation and policy in the country after his experience with state farm and its lack of coverage. State Farm’s actions involving disaster survivor claims illustrate that this company will not hesitate to deny well-deserved benefits when people need them most.

5. anthem.

Formerly known as Wellpoint, the Anthem insurance brand covers many people with its Blue Cross and Blue Shield plans, among others. However, when it comes to providing that coverage, Anthem often falls short, despite numerous government reprimands and fines over the years for canceling coverage or denying payment on covered claims. All the while, CEO Gail K. boudreaux earned $15,400,000 in 2019.

This company has a long history of canceling policies of insured with chronic illnesses or pregnant women and of unfair treatment of clients. the company reportedly even required that medical professionals provide confidential information about the insureds’ pre-existing conditions in order to cancel their coverage. Clearly, Anthem seems to be about the bottom line rather than the well-being of policyholders, who often need medical treatment for serious health conditions or injuries.

6. farmers.

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Even though customers consistently rate the company low in customer satisfaction, farmers insurance still generates millions and millions of dollars in profits each year. The insurance company’s continued financial success hasn’t stopped consumer reports and jd power & associates to rate this company among the worst auto and home insurance companies in the country.

The company has specific tactics to limit payments to claimants, even offering incentives to its employees if they meet their low payment goals. leaked internal documents showed that adjusters are trained to put profits before the interests and rights of policyholders. If adjusters are able to minimize payouts by getting claimants to accept low offers, they can receive pay raises, bonuses, and other perks.

This strategy makes it clear what the farmers’ priority is: their own pockets.

7. united health.

unitedhealth’s tactics not only make a lot of money for the company, they can also put patients at risk. According to the Aaj, “Physicians report that reimbursement rates are so low and delayed by the company that the patient’s health is compromised.” the company regularly lowers healthcare reimbursement rates, and patients must find a way to cover the bills themselves.

unitedhealth claims its system is fair, as the reimbursement rate calculations are completed by an independent company, ingenix, and not internally. What most people don’t know, however, is that unitedhealth owns ingenix, so it can control the calculation efforts to its advantage.

David Wichmann, the outgoing CEO, received $18.9 million in 2019 and the company’s success is due in large part to a partnership with AARP to seek out senior policyholders. The insurer then targets her older clients with high premiums for seemingly no reason other than because she can.

8. world life.

Formerly called Torchmark, this newly rebranded insurer focuses primarily on policies in Alabama, Texas, and other southern states. Despite 100 years in business in various guises, the company is reported to employ some very nasty practices.

For one thing, the insurer has come under scrutiny for charging its minority customers higher premiums than its Caucasian customers, especially for burial expense coverage. The company has also faced previous accusations of defrauding senior citizens and using many subsidiary companies to brag about case-specific insurance, such as cancer insurance, which is met with the same lack of customer service as , reportedly not provided by the parent company.

9. mutual freedom.

While it may not be as good at denying and delaying claims as state farm and allstate, liberty mutual reportedly sought help from the same consulting firm the other two companies sought to cut costs. This focus on cost cutting led to claims processing delays, unfair claim denials, and other tactics.

liberty mutual also began dropping and refusing to renew clients in high-risk areas, such as those susceptible to hurricanes or flooding, according to reports. this left policyholders without the coverage they needed in the event of a disaster that was completely out of their control.

While these tactics may hurt policyholders and claimants, they improved the corporation’s bottom line. CEO David long earned $19.4 million in 2018, up 14% from the previous year, so it doesn’t sound like the insurer is having trouble keeping money in the business.

10. usa

Although not on the Aaj list, the United Services Automobile Association (USAA) is another insurance company that is notoriously difficult to deal with. While usaa prides itself on promoting itself as the best solution for military members and their families, it is reportedly still very focused on its profits, which broke company records in 2019, reaching $4 billion.

a tactic reportedly used extensively by us. uu. is to delay claims processing. You may be wondering why an insurance company wouldn’t want to process claims as quickly as possible, but this tactic often ensures that claimants feel additional financial pressure. when the bills are piling up fast and it’s not clear if ee. uu. will pay a claim, people are much more likely to accept any offer that comes their way to ensure they have a check in their hands. Unfortunately, that check is often much smaller than it should be, leaving them without the funds they need.

usaa claims to care about its military policyholders, but these reports and accusations suggest that what really matters most to the company is its ever-increasing profits.

11. progressive

With its light-hearted commercials on your television, you probably assume that Progressive is a friendly, helpful, and customer-oriented insurance company. however, recent court cases paint a very different picture.

In recent years, progressive has faced numerous high-risk bad faith insurance claims filed by policyholders and claimants. while some of these cases have been resolved, others are ongoing.

In some of these cases, progressive allegedly failed to act effectively to resolve claims involving serious injuries to children caused by progressive insureds. One of those cases was ultimately settled for $22 million, while another pending case demands $50 million for Progressiva’s handling of bad faith claims.

Despite regularly appearing on jd power’s list of worst auto insurance companies, progressive managed to report a net income of more than $5 billion in 2019, an increase of nearly 44 percent over 2019. While racking up profits, it seems the progressive left many policyholders out in the cold.

these companies can pay you

These major insurance companies do not lack the funds necessary to adequately compensate their clients or those injured by their policyholders. state farm tops the list with $5.6 billion in profits in 2019. only three of these companies made less than a billion dollars, which means that the worst 70 percent of insurance companies made more than a billion dollars, but they did their best to keep that money away. of claimants and injured victims.

tactics used by insurance companies to harm consumers

While these insurance companies are on the list of worst insurers for various reasons, the fact is that all insurance companies are in business to make money. That means they have a financial incentive to collect premiums every month and pay as little as possible on each claim they receive. that’s why they train their representatives to get claimants to settle for less than they really need. Some of these tactics include:

making ridiculously low starting offers

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One of the most common tactics insurance companies use is to make initial offers for much less than the value of the claimants’ cases. Starting with low bids makes subsequent higher bids seem more attractive, even if they remain inadequate in light of your losses. When dealing with an insurance company, expect a low starting offer and don’t let it affect your position on benefits or the compensation you need and deserve.

request access to claimants’ full medical records

When people make insurance claims for help with medical expenses, insurance companies often make overly broad requests to look into their medical records and find anything they can use to justify calling an injury a “pre-existing condition.” “.

Have an attorney make sure you only sign a strictly personalized medical record release that only allows access to records that are relevant to your claim.

pressure claimants to provide recorded statements

Insurance companies know that many people who file claims have never been through the process before and don’t have the legal training to recognize certain things that can harm their claims. For this reason, insurance companies often pressure claimants to provide recorded statements answering questions about the incidents that led to their claims.

Unsurprisingly, insurance company representatives often ask leading questions during these recorded statements in an attempt to get claimants to admit fault or verbally minimize their losses in order to justify a denial or further settlement offer. low.

misrepresentation of the rights of the claimants

While it would be nice to trust that the insurance company had your best interests in mind, the reality is that insurance company representatives can misrepresent your rights. Some companies personally incentivize insurance adjusters with bonuses or the opportunity to advance your career by keeping payouts low, so take anything they say with a grain of salt.

Unfortunately, in some cases, they may misrepresent your rights to make you settle for less. For example, you may be told you don’t qualify for benefits for future accident-related medical expenses when you actually do.

If you relied on this information, it may lead you to accept a much lower settlement than you should. The most effective way to protect your rights is to have your case reviewed by an attorney before agreeing to a settlement.

suggesting that claimants will get less money if they hire a lawyer

In some cases, insurance company representatives try to dissuade claimants from hiring an attorney to handle their claims by telling them they will get less money in their pockets due to legal fees.

While every claim is different, research indicates that people represented by an attorney get significantly higher insurance settlements than people who handle their claims themselves.

delay claims while claimants’ bills accumulate

Insurance companies understand that people are more likely to settle for less when under financial pressure. As a result, they may take their time processing a claim while claimants’ bills pile up and may affect their credit scores.

rushing to resolve cases before plaintiffs understand their rights

While insurance companies spread claims as long as possible in some cases, in others, they rush to make settlement offers as quickly as they can. in these cases, they often try to settle claimants before they have a chance to speak with an attorney and determine the true value of their claim. Similarly, insurance companies may try to settle cases quickly, hoping that claimants will sign their rights before they acknowledge all of their losses.

the benefits of hiring an attorney for your insurance claim

Fortunately, hiring an attorney to represent you can level the playing field and get you the benefits or compensation you deserve, even if you’re dealing with one of the worst insurance companies out there. Once an attorney represents you, the insurance company will communicate with him or her, protecting your rights throughout the process.

Some of the specific ways an attorney can help ensure your insurance claim goes as smoothly as possible include:

  • determine who you can file a claim against

  • review your policy and make sure the insurance company meets its obligations

  • assess your losses and submit the proper documentation to support your claim

  • try to negotiate a fair deal

  • file a lawsuit, if necessary

    When you are injured in an accident, you must deal with insurance companies. The key to successfully beating them is hiring a personal injury attorney who knows the games insurance companies play and knows how to thwart them.

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