The 10 Worst Insurance Companies
For many people, insurance is a necessary evil. You have to have it to drive, and in the event of a catastrophic accident, it can help you pay related expenses that you couldn’t pay on your own. However, insurance is expensive and even though you pay premiums, sometimes a company will deny your claim or refuse to insure you when you need it.
Here are the 10 worst insurance companies for policyholders according to the American Association of Justice (AAJ):
- Allstate – Allstate makes the list for having a high rate of bad faith practices, including being accused of delaying claims, denying valid claims, and offering inadequate settlements. The company’s representatives were instructed to lie to consumers, and many current customers are dissatisfied with services.
- Unum – Unum is a disability insurance company and has a record for delaying or wrongfully denying claims that should have been paid. The company has engaged in many bad faith practices to save money and keep a larger profit.
- AIG – As part of their bad faith practices, AIG has used schemes and tricks to delay and deny valid claims to save money. The company has also rigged commercial markets to earn higher rates from businesses and other organizations.
- State Farm – In addition to drawing out claims and denying them, State Farm’s poor handling of natural disaster claims after Hurricane Katrina and with tornado damage in Oklahoma have added to the company’s poor image in the insurance community.
- Conseco – A long-term care insurance provider out of Indiana, Conseco has taken advantage of elderly customers to turn a profit. The company has also been the target of numerous complaints regarding false advertising, rate increases, and poor claims handling.
- WellPoint – This company has illegally canceled policies, overcharged customers, advertised itself fraudulently, and refused to pay doctors appropriately for services rendered to policyholders. WellPoint has been at the center of numerous bad faith claims across the United States.
- Farmers – Farmers Insurance Company incentivized employees to ensure claim payouts were minimal and to keep policyholders from taking legal action. They’ve also failed to pay the full settlement in valid claims repeatedly, and unfairly increased premiums for policyholders after claims were filed.
- United Health – United Health has been guilty of false product representation, delaying payments, and denying claims. The company continually fights complaints that it puts making money over the needs of customers.
- Torchmark – A company that specializes in cancer, life, and burial insurance policies, Torchmark has allegedly discriminated against minorities, lied to elderly policyholders, and used Medicare advertising to fraudulently sell additional insurance products.
- Liberty Mutual – Liberty Mutual has also engaged in claims delaying and denial practices to maintain profit margins. The company has also canceled policies for paying customers after natural disasters, and allegedly rigged insurance bidding to increase rates.
All these companies have high rates of customer dissatisfaction, according to consumer surveys, and the findings from the AAJ indicate that insurance companies believe they can make and alter the rules at will. In some cases, such as obtaining health insurance for work, you may have limited options in choosing a provider. Finding great rates is only half the battle. When you can, use an independent agent who will act as your advocate inside a larger company instead of purchasing a policy directly from the larger organization, itself.
Understanding the games insurance companies play can help you recognize unfair activities and take action quickly. Although you may feel like you’re at the mercy of these companies, the team at Surrano Law Group can help you dispute their findings and secure a fair settlement.