The American Association for Justice ranked Allstate number one out of the ten worst insurance companies in America. According to AAJ’s report, Allstate has been guilty of practicing bad faith to most of their policyholders. Allstate's CEO, Thomas Wilson, says their mission statement is “to earn a return for our shareholders.”
Allstate agents were forced to lie to their customers. If they settled claims for low amounts, they were rewarded. One of the methods agents were taught to employ was “delay, deny, and defend.” If an agent delayed a claim long enough, the policyholder would stop trying to obtain compensation. They are required to settle for as little as possible, cheating people from the money they deserve. Allstate became so difficult to deal with in recent years that lawyers started turning away cases against the company.
In the mid-1990s, a large consulting company named McKinsey and Company advised Allstate on how to boost their income. They urged Allstate to reduce the amount of money they paid in claims. Allstate took their advice and began putting profit before policyholders. This method increased their earnings until they received thousands of complaints from unsatisfied customers. They were forced to release the McKinsey documents during a court case in Florida.
From 1998 to 2008, Allstate’s paid out claims went from 78% to 58%. For auto claims, this number dropped from 63% to 47%. Allstate’s profit more than doubled in the ten-year span but still threatened to reduce coverage for homeowners. 48% of policyholders who have made claims say they are very unsatisfied, 12% claim to be unsatisfied.
If you have had a claim denied by Allstate in North Carolina ask our insurance dispute attorneys questions - 877-273-6823. You can also use on online case evaluation request and schedule an appointment on our calendar.