Recently, the American Association for Justice published a report called, “The Ten Worst Insurance Companies in America: How they raise premiums, deny claims and refuse insurance to those who need it most.”
Since one of our key goals at Rider Justice is to make sure that Colorado motorcycle riders have the best insurance they can possibly afford, we thought we’d share some of the report’s key findings and also some of our own experiences with insurance companies. Simply put: too many insurance companies take advantage of their own customers. You need to make sure that you’re working with an ethical company and that you have purchased the right kinds insurance coverage for motorcycle riders.
“We were told to lie by our supervisors—it’s tough to look at people and know you’re lying.”
— Jo Ann Katzman, Allstate adjuster
The American Association for Justice’s Report
The 28-page report released by the AAJ doesn’t mince words. Right in the introduction, you can find their “top ten” list of the worst insurance companies:
- Allstate
- Unum
- AIG
- State Farm
- Conseco
- WellPoint
- Farmers
- United Health
- Torchmark
- Liberty Mutual
Clearly the AAJ was looking at all kinds of insurance, including health insurance. Here are some of the key findings in the report.
Allstate—The Worst Insurance Company in America
One company stood out above all others. Allstate’s concerted efforts to put profits over policyholders has earned its place as the worst insurance company in America.
According to CEO Thomas Wilson, Allstate’s mission is clear: “our obligation is to earn a return for our shareholders.” Unfortunately, that dedication to shareholders has come at the expense of policyholders. The company that publicly touts its “good hands” approach privately instructs agents to employ a “boxing gloves strategy against its own policyholders.”
In the words of former Allstate adjuster Jo Ann Katzman, “We were told to lie by our supervisors—it’s tough to look at people and know you’re lying.”
AIG
The world’s biggest insurer, AIG has a long history of claims-handling abuses for both individuals and business clients. AIG executives have also come under fire for opportunistically seeking price increases during catastrophes. Now the company has been labeled “the new Enron” because of charges of multi-billion-dollar corporate fraud.
State Farm
As the biggest property casualty insurance company in America, State Farm has become notorious for its deny and delay tactics. In many cases, the company has gone to extreme lengths to avoid paying claims, including forging signatures on earthquake waivers after the deadly Northridge earthquake, and altering engineering reports regarding damage after Hurricane Katrina.
Liberty Mutual
Like Allstate and State Farm, Liberty Mutual hired consulting giant McKinsey & Co. and adopted deny, delay, and defend tactics. The company has also gone one further than simple claims-handling abuses by indulging in what regulators allege is systematic bid-rigging.
You should read the full report, which goes into much more detail on each company. While it will probably make you very angry, it will open your eyes to the horrible tactics used by the very companies that are supposed to protect us when we are at our most vulnerable.
Colorado’s Worst Car and Motorcycle Insurance Companies
Now, let’s bring it home. After reading the report above, we at Rider Justice would like to add the following to the above list of the worst car and motorcycle insurance companies:
- Fred Loya
- Geico
- American Family
We have seen each of these companies attempt to hide coverage from victims as well as from their own policyholders! Some victims lose their jobs, cars and homes waiting for these insurance companies to pay a claim. It’s inhumane.
Are There Any Insurance Companies You Can Trust?
While we don’t trust any insurance company completely, these are the companies that seem to treat their customers and claimants fairly:
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Nationwide
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Chub
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Amica
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SafeCo
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Progressive (This company is “hit or miss.”)
If you have any questions about this article or if you think your insurance company is giving you the runaround, please contact us today.