Modified: October 30, 2022

What Are The Worst U.S. Insurance Companies?

Los Angeles Personal Injury Attorneys

Americans want to secure their health, homes, properties, and future against life problems. This has made the American insurance industry a most thriving one.

The industry makes a whopping sum of $1 trillion every year from premiums, according to research produced by the American Association for Justice (AAJ). I personally think Infinity and Mercury are garbage insurers. Let’s look at what the other experts have to say.

What are the Worst Companies in the Insurance Industry?

  • Allstate
  • Unum
  • AIG
  • State Farm
  • Conseco
  • Wellpoint
  • Farmers
  • Unitedhealth
  • Torchmark
  • Liberty Mutual.

AAJ researchers conducted an all-inclusive investigation of companies offering auto insurance. This is to know if car insurance policyholders have been suffering any injustice. From this research, they discovered that most car insurance companies are highly profit-oriented, and they make so much profit at the expense of their clients, who ironically took out their policies to protect themselves against these issues.

AAJ discovered that the worst auto insurance companies make their wealth by cutting corners by rejecting claims, denying coverage, and inflating premiums.

Additionally, AAJ conducted research using court documents, Securities and Exchange Commission records, FBI records, state insurance department investigations, policyholders’ complaints, news stories, testimonies, and depositions of former auto insurance companies’ agents and adjusters.

The research cut across insurance companies in various fields. These include homeowners’ insurance and auto insurance companies, health insurers, life insurers, and disability insurers.

According to the AAJ, the following are the top 10 worst insurance companies in the US:

Allstate

Allstate Insurance Group tops the list as the worst insurance company in America because of its reputation of being extremely profit-oriented at the expense of its own policyholders.

This company is not after customer satisfaction. Even the company’s CEO, Thomas Wilson, said that the company’s obligation is to earn a return for its shareholders.

This is fair enough, but the greedy manner with which they attain this is evident in the ridiculously low settlement offers it makes to its clients who make an insurance claim, using all methods of tactics to delay claims and force them to accept the offers and how hard they fight their clients when their cases go to court. Allstate is one of the worst car insurance companies in the US.

It is evident through documents the company has released to the public that Allstate’s loyalty is to the shareholders at the expense of the policyholders. All these have earned them the top spot as the worst insurance company in America.

Unum

Unum is the top disability insurer in the United States and offers car and life insurance. It has a reputation for treating clients with total disrespect and disregard, making it one of the worst insurance companies.

Research shows it denied the claim of a client suffering from multiple sclerosis for three years and ruled that her conditions were “self-reported” despite doctors’ evaluation proving otherwise. The policyholders complain that Unum finds every means of delaying claims and denying claims made.

The company is constantly investigated in the media for all these allegations made against it and the unjust manner in which it treats its clients.

AIG

AIG is the largest insurance company in the world, and it is on this list because of its involvement in massive corporate fraud. The executives have embezzlement allegations, with their ex-CEO reportedly taking away a payout sum of $68 million.

In 2008, the company had conspired with other insurance brokers to fake bids that deceived the government of several states that there was a competitive insurance market. According to former insurance employees, this is just one of the games insurance companies play.

State Farm

State Farm has a reputation for denying and delaying auto insurance policyholders’ claims with distasteful practices. The company has been accused of manipulating clients’ medical records to escape settlements and is known as one of the worst car insurance companies out there.

There were also allegations of forgery of clients’ signatures wavering their claims after Hurricane Katrina. Despite all the tactics to avoid paying clients, the executives at State Farm still manage to go home with millions of dollars in remuneration.

Conseco

This company makes a list by shamelessly leeching off elderly citizens, its main clients. The company sells long-term policies to senior citizens and then employs delay tactics when it is time to pay out settlements.

AAJ reported that Conseco uses the deteriorating health of the clients to its advantage by delaying payments for as long as possible, knowing that the clients will die soon enough. Additionally, it equally pays its executives huge remuneration despite cheating its clients.

Wellpoint

This company rips off its clients by canceling the policies of chronically ill and pregnant policyholders. It is highly profit-oriented at the expense of its customers. Executive loyalty lies with its shareholders, and they equally pay their executive’s outrageous sums in remuneration.

Farmers

This company is also highly profit-oriented at the expense of its customers. The goal is to pay customers the lowest settlement amounts possible, and it even offers incentives to employees for meeting their soft payment goals.

Consumer Reports have rated the company among America’s worst auto and home insurance companies.

Unitedhealth

According to AAJ, this company jeopardizes its customers’ well-being for profit by giving meager reimbursement rates and employing all tactics to delay payment. Physicians have reported that these acts of the company put the customers’ lives in grave danger. It pays its executives ridiculously high salaries, and they have criminal and civil allegations.

Additionally, it has a practice of ripping off elderly customers by promising high premiums and delaying payments until they die.

Torchmark

This company has the allegation of being racist, charging higher premiums for minority customers and charging less to its Caucasian customers. It targets low-income Southerners and has the reputation of refusing to insure minority Americans and selling fraudulent policies to senior citizens.

Liberty Mutual

Liberty Mutual has a reputation for employing aggressive tactics to rip off its customers. The company is notorious for its non-renewal of policies for the people living in hurricane-prone and northern states.

Liberty Mutual has also left millions of customers stranded without covering them, leading to poor customer satisfaction.

Schedule a Free Consultation With An Insurance Law Expert

If you have suffered a car accident and have a policy with an insurance company, you may find it difficult to recover your insurance claims. You will need the services of an excellent California personal injury attorney who knows how to beat the insurance companies at their own game.

If you have any injuries and need legal help, call Ehline Law at (213) 596-9642 today for a free consultation.

Top Notch American Injury Lawyer, Michael Ehline

Michael Ehline

Michael is a managing partner at the nationwide Ehline Law Firm, Personal Injury Attorneys, APLC. He’s an inactive Marine and became a lawyer in the California State Bar Law Office Study Program, later receiving his J.D. from UWLA School of Law. Michael has won some of the world’s largest motorcycle accident settlements.

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