What Are the Worst Insurance Companies? The Worst Insurance Companies for Bad Faith
When you sign up for insurance, you and the insurance company are making an agreement that means you’ll pay premiums and that the insurance company will pay for part or all of your healthcare expenses. Unfortunately, it seems that many insurance companies don’t like to hold up their end of the bargain.
According to reporting from the National Law Review, the American Association for Justice (AAJ) has conducted a thorough analysis of the actions of insurance companies in the U.S., relying on court documents, FBI records, and former insurance employee testimony.
Using that analysis, the AAJ compiled a list of the 11 worst insurance companies in the country:
- State Farm
- Farmers Insurance
- United Health
- Global Life
- Liberty Mutual
What Are the Worst Insurance Companies?
- • Allstate — AAJ’s report states that Allstate uses both lowball offers and hardball litigation to fight against their own policyholders. There are also allegations that Allstate uses confusing language to trick policyholders into thinking they’re getting coverage when they’ve actually been denied.
- • Unum — Unum is allegedly known for its practice of delaying and denying rightful claims. A California Insurance Commissioner described Unum as an “outlaw” company.
- • AIG — the National Law Review reports that AIG allegedly mistreats its policyholders, including by raising prices after disasters. AAJ noted that AIG is known as ‘the new Enron,’ referencing the multi-billion dollar corporate fraud charges against AIG.
- • State Farm — the allegations against State Farm regarding the claims made following Hurricane Katrina are particularly concerning. State Farm allegedly forged client signatures and altered engineering reports.
- • Anthem — including Blue Cross and Blue Shield, Anthem has faced numerous penalties from the government for wrongdoing, including denying coverage on valid claims. Anthem is also known for canceling policies for pregnant and chronically ill clients, according to the National Law Review.
- • Farmers Insurance — along with the AAJ, Farmers Insurance has also received negative reports from JD Powers & Associates and Consumer Reports. The company allegedly offers incentives to its adjusters for meeting low-payment goals.
- • UnitedHealth — the AAJ states that UnitedHealth has incredibly low reimbursement rates, with delays being common. While UnitedHealth argues its use of a third-party company to calculate claim rates keeps its system fair, it doesn’t mention that it owns that company too, as reported by the National Law Review.
- • Global Life — Global Life doesn’t serve the whole country, but Texas is on the list of states where this company sells policies. National Law Review reports that Global Life has been accused of charging minority clients more than Caucasian clients.
- • Liberty Mutual — Liberty Mutual reportedly relied on the same consulting firm as Allstate and State Farm to help it reduce costs. In an effort to reduce costs, the company reportedly increased denial and delays.
- • Progressive — Progressive is another insurance company that landed in JD Power’s bad books. Among other bad faith cases against Progressive, the company has been accused of acting improperly in cases involving claims for injured children.
Insurance Claim Denied? Get Help From a Bad Faith Insurance Lawyer
You should be able to trust your insurance company to act in accordance with laws and its own policies, but that isn’t always the case. Some companies will act in bad faith in an effort to get out of paying what they owe.
If you feel your insurance company is wrongfully delaying or denying your claim, they may be engaging in bad faith tactics.
If you think your insurance company may be acting in bad faith, an experienced bad faith insurance attorney can help you fight for whatever you may deserve. Don’t face your insurance company and their high-powered legal team alone. Reach out to the team of bad faith attorneys here at Millin & Millin for help finding the right path forward.