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Insurance companies want to make money by paying out less in settlements than they take in from premiums. Sometimes, insurance adjusters try to get people injured in motor vehicle crashes to settle their claims for less than they deserve. They hope that people will decide it's not worth the effort to pursue a fair recovery, but our car accident lawyers want you to know the truth.
Common Complaints Against Insurance Companies
Claim handling is a common complaint against insurance companies. More specifically, Value Penguin found that more than half of the most common complaints against major insurers involved handling claims. More specifically, in 2019, there were:
- 819 complaints involving unsatisfactory settlements/offers
- 834 complaints involving claim delays
- 550 complaints about claim denials
- 313 complaints about adjuster handling
- 126 complaints involving state-specific claim handling
- 118 complaints involving comparative negligence
In 2019, 38 insurance complaints were filed in Wisconsin and 53% of them involved claim handling. Iowa had 17 insurance complaints and 76% of them involved claim handling. Illinois had 12 insurance complaints with 42% of them involving claim handling.
Among the top 10 insurance companies in the country, Value Penguin reported that the most common complaints were as follows:
- Allstate – delays
- Farmers – unsatisfactory settlements/offers
- Chubb – misrepresentation
- Geico – delays
- Liberty Mutual – adjuster handling
- Nationwide – denial of claims
- Progressive – unsatisfactory settlements/offers
- State Farm - unsatisfactory settlements/offers
- Travelers - unsatisfactory settlements/offers
Which Insurance Company Is the Worst?
That depends on where you live and what factors you consider.
J.D. Power 2020 Auto Insurance Satisfaction Survey
Each year, J.D. Power examines customer satisfaction with auto insurance companies by looking at customers' experience with (1) billing and policy information; (2) claims; (3) interaction; (4) policy offerings; and (5) price. Each insurance company receives a score on a 1,000 point scale.
Iowa is in the Central region. In 2020, the five lowest-scoring insurance companies in the Central region were:
- Safeco – with a score of 812
- American Family – with a score of 814
- Nationwide – with a score of 815
- Auto Club of Southern California Insurance Group – with a score of 825
- Farmers – with a score of 827
Illinois and Wisconsin are in the North Central region. In 2020, the five lowest scoring in this region included:
- Michigan Farm Bureau – with a score of 800
- The Hanover – with a score of 808
- Automobile Club Group – with a score of 809
- Liberty Mutual – with a score of 816
- Safeco – with a score of 819
Value Penguin
Claim handling was the most common complaint for all four of the top American insurance companies. Specifically, Value Penguin reports that claim handling made up:
- 76.2% of Geico complaints
- 70.3% of Progressive complaints
- 69.3% of State Farm complaints
- 55.5% of Liberty Mutual complaints
Value Penguin also considered the auto complaint index, which looked at how likely an insurer was to receive a complaint compared to other insurers. The decimal provided in the auto complaint index indicates how likely a customer is to file a complaint when compared to typical insurance customers. For example, Liberty Mutual has the highest auto complaint index at .96. That means that Liberty Mutual customers are 96% more likely to file complaints when compared to typical insurance customers. The ten insurance companies considered ranked as follows for the auto complaint index:
- Liberty Mutual – .96
- Farmers – .86
- Geico – .81
- Progressive – .78
- State Farm – .69
- USAA – .69
- Travelers – .62
- Allstate – .6
- Chubb – .51
- Nationwide – .43
Insurance Companies Know Our Personal Injury Lawyers Mean Business
Insurance companies in Wisconsin, Iowa, and Illinois know that our car accident lawyers mean business. If they are unwilling to provide fair settlements, then we will not hesitate to go to court to protect your rights. Often, insurers want to avoid the uncertainty and risk of trial and are willing to settle our clients' claims. However, if they decide to delay, deny, or offer you less than your claim is worth, then we will pursue your case in court.
Learn more about how to get the recovery you deserve from an insurance company by contacting the experienced car accident lawyers of Hupy and Abraham for a free, no-obligation consultation. We would be happy to meet with you in any of our 11 Midwest offices throughout Illinois, Iowa, and Wisconsin, a place convenient for you, or by phone or video conference.
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