Disclaimer:This document highlights concerns with certain insurance companies and provides solutions to navigate these challenges. If you’re dissatisfied with your current provider, check out our recommended insurers.

Insurance Companies We Recommend Avoiding

Key Findings

We’ve identified several insurance companies with problematic claim-handling practices, particularly related to the appraisal clause.

Auto-Owners Insurance

• No Appraisal Clause: Disputes over repair estimates, ACV, or diminished value must be resolved through legal action.
• Diminished Value Waivers: Agents may encourage waiving diminished value claims for reduced premiums.

State Farm

• Restricted Appraisal Clause: Limits to ACV claims, excluding diminished value and repair-related disputes.
• Consumer Impact: Forces consumers to pursue costly litigation for disputes.
• Alabama State Farm: No total loss appraisal clause, making it difficult for clients when vehicles are totaled.

Safeco, ALFA & Horace Mann

• No Appraisal Clause: Policies lack an appraisal clause.
• Consumer Burden: Policyholders must accept settlement offers or pursue legal action.

Allstate

• Delays: Appraisers often take up to 120 days to resolve disputes.
• Weakened Clause: Removes “binding” from appraisal clauses, reducing enforceability.
• Biased Appointments: Selects appraisers and umpires favorable to Allstate.
• Claim Manipulation: Uses the appraisal process to minimize payouts.

Geico

• Delays: Appraisers often take up to 120 days to resolve disputes.
• Biased Appointments: Selects appraisers and umpires favorable to Geico.
• Claim Manipulation: Uses the appraisal process to minimize payouts.

Donegal

• Conditional Diminished Value Claims: Denies claims if repairs were done by a third-party insurer without Donegal inspection.

AAA-Memic and Turo

• Diminished Value Exclusion: Policies exclude diminished value coverage.
• Appraisal Clause Limitations: Used only for Total Loss ACV claims.

MileAuto & Trexis (Owned by ALFA)

• Conditional Appraisal Clause: Requires mutual agreement to activate.
• Insurer Refusal: Insurers can refuse to activate the clause, forcing legal action for disputes.

Commercial Insurance Policies (e.g., Kemper Lula, Auto-Owners)

• Kemper Commercial: No payout for diminished value, cannot be pursued civilly.
• Auto-Owners: No appraisal clause, likely needing lawsuits to resolve total loss and diminished value.

Mendota Insurance

• Mendota does not provide coverage for diminished value; however, assistance with total loss disputes is available.

Consumer Guidance

These findings reveal significant challenges consumers may face with certain insurers. If you’re affected by these practices, we’re here to help.

• Next Steps: See our flowcharts and follow all instructions for guidance on filing claims.
• Contact Us: Reach out with questions or for a policy review.